Pinduoduo and TikTok owner ByteDance introduced e-commerce sites on the internet in recent months, in an attempt to sell Chinese goods to foreign buyers.
The move puts the two Chinese tech companies on a collision course with Amazon as they expand internationally.
Pinduoduo, one of China’s largest e-commerce companies, last month unveiled a U. S. grocery store. It was called Temu, which sold products in categories ranging from fashion to sports to electronics.
A few weeks later, ByteDance, the owner of Beijing-based short video app TikTok, introduced a fad called If Yooou. Lately it is sent to the United Kingdom, Spain, Italy, Germany and France.
Both corporations should reflect the good fortune of Shein, the fast-fashion Chinese logo that is now said to be worth $100 billion and has discovered a giant visitor base in the U. S. In the U. S. and elsewhere.
ByteDance and Pinduoduo also rely on cross-border e-commerce: promoting Chinese to foreign consumers. U. S. markets The U. S. and Europe also provide an opportunity for growth.
The overseas push comes at a time when China’s tech giants are looking for new avenues of expansion as the domestic economy continues to face demanding situations due to Beijing’s strict anti-covid policies and deteriorating global macroeconomic environment.
“I think ByteDance and [Pinduoduo] are seizing the opportunity to apply their unique inventions in social commerce” to markets, Jacob Cooke, chief executive of WPIC, an e-commerce marketing and generation company that is helping foreign brands sell in China, told CNBC. .
Pinduoduo declined to comment for this story, while ByteDance responded to a request for comment.
Pinduoduo’s cross-border e-commerce, also known as PDD, and ByteDance will be others given their other strengths.
In China, PDD has grown through building direct links with suppliers and offering significant discounts. This can be helpful when it comes to locating products to sell in the U. S. Promote them at low prices.
ByteDance, meanwhile, runs TikTok, one of the world’s leading social media apps.
ByteDance’s algorithms for consumers on TikTok, “plus the ability to leverage the TikTok ecosystem for commerce, are massive benefits,” Cooke said.
The Chinese company is not new to e-commerce. In the UK, it has a grocery shopping feature on TikTok where brands and influencers make videos about products and users can buy those products through the app.
But he hasn’t discovered success yet.
Dmonstudio, a women’s fashion site that ByteDance had launched in the past, closed after only a few months of operation. And Fanno, another ByteDance e-commerce site, hasn’t been very successful.
So-called live grocery shopping is very popular in China and some Asian countries, but it hasn’t taken off in Europe or the US. U. S. The Financial Times reported in July that TikTok had abandoned plans to expand its live e-commerce strategy in Europe. . and the United States
This may just be one explanation for why ByteDance persisted with an online grocery shopping to accompany its TikTok grocery buying strategy.
ByteDance and Pinduodudo are new Chinese corporations looking to conquer foreign markets. Alibaba and JD. com, China’s two largest e-commerce corporations, have expanded in recent years.
ByteDance and Pinduoduo’s attempts to enter the e-commerce market put them on a direct festival with US Amazon. U. S.
PDD’s Temu, which sells in other categories, will look to challenge Amazon in terms of price.
ByteDance’s If Yooou website will compete with Amazon in fashion, a domain in which the Seattle-based company will bolster its efforts.
But either may face a challenge in evicting Amazon’s domain.
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One explanation for why is that the habit of customers outside China tends to favor Amazon’s model, according to Cooke. Customers usually turn to Amazon to find quick products or brands they’ve already moved on to buy, he said.
By contrast, Chinese platforms like Alibaba’s Tmall and JD. com “function more like virtual grocery shopping malls where other people browse and engage in a virtual social experience. “
Pinduoduo and ByteDance “may devour Amazon’s share in some sectors like Shein did, but ultimately, they would possibly not jeopardize Amazon’s dominance in the U. S. e-commerce market. “”U. S. “
“They face low logo popularity and want to gain users’ trust. “
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