Summary of Douyin Ecommerce Expert Call Industry Overview - **Industry**: Ecommerce in China, specifically focusing on Douyin (unlisted) and its performance during the Double 11 shopping festival Key Points 1. **Growth Performance**: Douyin's gross merchandise value (GMV) during the Double 11 period grew by 25% year-on-year, which is noted as the fastest growth in the industry, although it has slowed from over 30% growth in the previous three quarters [2][3] 2. **Year-End Expectations**: Douyin is expected to conclude the year with a GMV of CNY4.4 trillion, representing a 29% year-on-year increase, surpassing the initial target of CNY4.2 trillion set for 2025 [2] 3. **Factors Contributing to Growth**: The expert attributed Douyin's growth to: - A less tough base effect compared to competitors JD and Alibaba - Increased subsidies - Strong momentum in its marketplace ecommerce [3] 4. **Subsidy Program Expansion**: Douyin's trade-in subsidy program (TSP) expanded from 8 provinces last year to approximately 22 provinces this year, contributing to its growth despite starting slower than JD and Alibaba [4] 5. **Subsidy Spending**: Douyin spent CNY5 billion in subsidies during this year's Double 11, which is a 27% increase year-on-year [5] 6. **Marketplace Model Success**: Douyin's marketplace model saw GMV growth of approximately 50% year-on-year, accounting for 45% of total GMV from January to October, while live-streaming ecommerce GMV grew by 14-18% year-on-year [6] 7. **Challenges in Marketplace**: Despite strong growth, Douyin faces challenges with lower shopper mind share compared to established competitors like Alibaba, JD, and Pinduoduo, with nearly half of its marketplace GMV relying on user traffic from live-streaming ecommerce [6] 8. **Grocery Category Performance**: The grocery category performed well, benefiting from the shift of consumption from offline to online channels, driven by competition in quick commerce between Alibaba and Meituan [7] Additional Insights - **Competitive Landscape**: There was a notable competition between Douyin and Alibaba towards the end of the Double 11 period, as both platforms sought to capture growth in a sluggish consumer market [5] - **Market Dynamics**: The overall ecommerce industry is experiencing a significant migration of grocery shopping from offline to online, influenced by competitive pressures [7]