3 6 Ke·2026-02-12 12:24Core Insights - Douyin has re-entered the local service market with a new independent group-buying app called "Dou Sheng Sheng," aiming to compete directly with Meituan in the group-buying sector [2][5][8] - The app offers significant subsidies for new users and focuses on simplifying the group-buying process, enhancing user experience and conversion rates [6][7] - Douyin's local business has seen substantial growth, with a reported GMV increase of 59% year-on-year, indicating a strong market presence [19][21] Group 1: Douyin's Strategy and Developments - Douyin initially struggled in the food delivery market but pivoted to group-buying, leveraging its traffic advantages to recover and grow [1][11] - The launch of "Dou Sheng Sheng" is a strategic move to streamline group-buying services, separating it from the main Douyin app to enhance user engagement [5][6] - The app's development is part of Douyin's broader strategy to deepen its local service offerings and compete more effectively against established players like Meituan [8][19] Group 2: Market Dynamics and Competition - The local service market in China is projected to reach 35.3 trillion yuan by 2025, with significant growth opportunities in the group-buying segment [21][22] - Meituan is facing increased competition not only from Douyin but also from other players like Alibaba and Xiaohongshu, indicating a highly competitive landscape [23][24] - Meituan's recent acquisition of Dingdong Maicai for $717 million aims to strengthen its position in the fresh produce sector, which is critical for user retention and growth [25]