Dialogue with Wei Wenwen, President of Tiktok E-commerce: Where is the next e-commerce growth opportunity?

Wen/Yan YanOn May 16, at the Tiktok E-commerce Ecological Conference, Wei Wenwen, president of Tiktok E-commerce, disclosed the platform development data of the past year, and the GMV growth rate of Tiktok E-commerce in the past year exceeded 80%. In one year, GMV has nearly doubled, with strong growth rate and development momentum

Wen/Yan Yan

On May 16, at the Tiktok E-commerce Ecological Conference, Wei Wenwen, president of Tiktok E-commerce, disclosed the platform development data of the past year, and the GMV growth rate of Tiktok E-commerce in the past year exceeded 80%. In one year, GMV has nearly doubled, with strong growth rate and development momentum.

After the meeting, Wei Wenwen predicted in an interview with the media that shelf e-commerce will become an important opportunity in the coming year.

At the beginning of last year, Tiktok E-commerce announced that it would upgrade its "interest e-commerce" to "all domain interest e-commerce", including both content e-commerce focusing on short video and live broadcast, and shelf e-commerce focusing on Tiktok Mall, search, stores and other channels. It hopes to collaborate with each other in content scenes and shelf scenes to explore new growth opportunities.

"In the past year, the GMV proportion of the Tiktok e-commerce shelf scene reached 30%, which is very optimistic about the development potential of the shelf e-commerce, and it is predicted that its proportion in the overall e-commerce GMV will continue to increase in the future." Wei Wenwen said that Tiktok e-commerce will invest 10 billion cash to support businesses to do a good job in shelf business in 2023.

In the past, the main development of Tiktok e-commerce was content e-commerce. Will vigorously promoting the development of shelf e-commerce occupy the Lebensraum of the former?

In Wei Wenwen's view, content e-commerce and shelf e-commerce are equally important, and the two scenarios are not conflicting and separated. They will grow synergistically in the future. Good content comes with its own traffic, and good products also come with their own traffic. We will connect these two scenarios to make the content very smoothly connect to the products, and the products can also return to the content very smoothly. After these two scenarios are connected, they will form a business growth flywheel for overall global operation

Tiktok E-commerce disclosed that the GMV growth of the platform exceeded 80% in the past year. Among them, the GMV of the shopping mall increased by 277% year-on-year, the GMV of e-commerce search increased by 159% year-on-year, and the GMV of shelf scenes accounted for over 30% of the platform's GMV. In the past year, the daily average viewing volume of Tiktok e-commerce live broadcast exceeded 2.9 billion times, the daily average search volume of e-commerce intention exceeded 400 million times, and the platform sold more than 30 billion products throughout the year.

Where are new growth opportunities in the coming year? What is the secret to long-term growth?

In Wei Wenwen's opinion, there are two growth engines of Tiktok e-commerce traffic, one is content construction, and the second is commodity.

Firstly, in terms of content construction, she highlighted several emerging opportunities: firstly, graphics and text, which in some scenarios have higher efficiency in transmitting information. In the past two months, the number of views of trailer graphics and text and GMV have been steadily increasing; The second is content, which can not only enrich product information but also promote product transformation; The third is to flexibly use the prosperous content creation ecology of Tiktok and try to connect and cooperate with stars, talents and MCN.

The second engine is products, as an old saying goes in e-commerce, good products come with traffic.

Wei Wenwen told reporters that in the distribution logic of Tiktok e-commerce, goods with better price, quality and service can be distributed more generally. Our own distribution mechanism is also designed in this way. What kind of products are suitable for business operation? Firstly, we need good products with good prices, quality, and service. The content is the same, and we hope that the content is authentic, trustworthy, professional, and interesting. This type of content is suitable for global business and distribution

Meanwhile, Wei Wenwen suggests that businesses optimize their products based on different scenarios, as different scenarios require different good products. Specifically, the content scene and shelf scene need to have their respective focuses.

She mentioned that for example, the content scene is suitable for marketing explosion, so there are many rich non-standard products, explosive products, good new products, and marketing products in the content scene, all of which are very suitable. On the other hand, the shelf scenario is suitable for daily sales, and competitive standard products are better in the shelf scenario. Overall, we will definitely continue to promote good content and products, optimize distribution mechanisms based on these characteristics, and provide operational tools, "said Wei Wenwen.

Since this year, many e-commerce platforms have taken a clear stance to implement low price policies and strive for traffic growth opportunities that sink the market. Does Tiktok e-commerce also have relevant plans?

In this regard, Mu Qing, vice president of Tiktok E-commerce, said, "We will support any product that can meet the user experience. Tiktok serves users all over the world. Some users need products in the high price segment, and some need products in the low price segment. As long as it is a good product at a good price, we will provide corresponding support."

Live streaming e-commerce has gone from the first half of the traffic war to the second half of the e-commerce ecosystem war, accompanied by more intense market competition. In the past year, e-commerce anchors and merchants have chosen to "fully bloom" and develop on multiple platforms.

In Mu Qing's view, the internet itself is a very open market. In an interconnected environment, we take this situation very seriously. Secondly, whether it's influencers or merchants, their ultimate choice is to look at growth space and long-term value. We are committed to enabling different categories of influencers to create more value and serve users well in more scenarios of e-commerce with global interests. As long as we can serve users well together and do e-commerce seriously, we will strongly support them

In the past year, we have 2.52 million merchants experiencing business growth on the platform, with 32000 merchants with GMVs exceeding 10 million, which is a very large scale. The scale of influencers has become even larger, with 7.7 million influencers and 23000 influencers with GMVs exceeding 10 million on the platform last year. It can be seen that all types of influencers and merchants can find the users they serve and find ways and paths to gain value, "said Mu Qing.