The beauty industry is in a rapid development stage with the change in consumer demand. At the same time, with the continuous development of Douyin (Chinese version of TikTok) e-commerce platform, the business field and business ideas are also changing.
On December 22, the 2022 Douyin E-commerce Beauty Conference was held in Shanghai with the theme of “D-beauty, The New Beauty”. At the conference, the beauty industry of Douyin e-commerce officially announced the industry strategy and industry solutions around the new trends of the industry and e-commerce with global interests, bringing more business methodologies and boosting the beauty industry partners to gain greater growth space.
It is reported that in November, the daily average number of short videos broadcast by e-commerce in the beauty industry reached 330 million, and the daily average number of live broadcasts by e-commerce in the beauty industry exceeded 130 million. From December 1, 2021 to November 30, 2022, the beauty industry added more than 100 million new order users. On the other hand, during the period from December 1, 2021 to November 30, 2022, there will be 75 top brands in the beauty industry of the whole network settled in Douyin E-commerce, and 143 brands in the beauty industry with an annual sales of more than 100 million yuan.
Three core strategies
At this conference, the beauty industry of Douyin e-commerce proposed three core strategies: new product strategy, category strategy and consumer service strategy to provide businesses with specific business guidance in different dimensions.
In terms of new product strategy, Douyin E-commerce wants to create a more efficient new product listing route. According to the data released by Douyin, in 2022, 27 brands have completed satisfactory new product market exploration in Douyin e-commerce, of which the sales volume of Mistine new product has reached 400%. In 2023, Douyin E-commerce will use product data to improve the operation efficiency of new products, and complete the promotion, sales, drainage and penetration of four new product indicators. The goal is to increase the new product explosion efficiency by 1 time and the repurchase rate by 1.5 times.
In terms of category strategy, Douyin E-Commerce said that it would shift from single explosive product creation to refined operation. “In 2023, the beauty category should move from the ultimate explosive to the rich layout, and achieve the ultimate experience and innovation details through the promotion of new products, retention, and consumption upgrading.” Guan Xinran, head of the beauty industry of Douyin e-commerce, said.
In terms of consumer service strategy, it is necessary to realize the double upgrade of consumer shopping experience and rights and interests. In 2022, Douyin e-commerce has achieved a significant increase in the repurchase rate of people through membership tools. Next year, it will upgrade its membership tools, improve the efficiency of recruiting new users, promote transformation and repurchase.
Influencer shop is a new trend in Douyin e-commerce
This year (from January 1, 2022 to November 30, 2022), the GMV of the influencer shop grew by 150% month on month. Such accounts have also transited from the extreme matrix operation of “character design” to “brand trust”. Because of the trend, the content explosion has created a concentrated outbreak, which in turn has promoted the trend. Douyin e-commerce can continue to provide new trends and new opportunities for the beauty industry. This may be because the beauty industry has more advantages in the platform with strong content attributes.
Douyin e-commerce author ecology has maintained the ability to help new entrants grow in the past year’s rapid expansion. According to the disclosure of this conference, from November 2021 to November 2022, 6.27 million e-commerce authors gained income through Douyin e-commerce, including 4.1 million new authors, which demonstrates the vitality of Douyin e-commerce ecology for global creators.
In the last year, the cumulative number of authors with a GMV of more than ten million has reached 19,000, 2.3 times that of the same period last year. Some of them are stars with a fan base, some are creators of content transformation e-commerce, and other types.
Wei Wenwen, president of Douyin E-commerce, said that interested e-commerce companies not only explore user value, but also support brand growth and outbreak by adapting to the marketing needs of the brand’s whole life cycle with rich marketing scenarios