Douyin E-commerce's Ambitious GMV Target for 2024

Background:
- Pinduoduo's 2023 GMV: ¥4.05 trillion.
- Douyin E-commerce's 2023 GMV: Approximately ¥2.7 trillion (though initially reported as ¥2.2 trillion, the higher figure includes contributions from "product cards").
- Douyin E-commerce's 2024 GMV Target: ¥4 trillion, nearly a 50% increase from 2023.

Comparison with Major E-commerce Players:
- Alibaba's 2023 GMV: ¥7.2 trillion.
- Pinduoduo's 2023 GMV: ¥4.05 trillion.

Strategic Moves:
- Price Competitiveness: Douyin E-commerce is focusing on enhancing its low-price strategy, similar to Pinduoduo, Alibaba, and JD.com.
- New Features: Testing an "automatic price adjustment" function to help merchants offer competitive prices based on market conditions.
- Product Labeling: All products on Douyin E-commerce will be labeled with price indicators like "lowest price," "highest price," and "lowest price on the entire network" starting in 2024.

Expansion Efforts:
- Shelf Commerce: Douyin E-commerce is looking to grow beyond content-driven sales by launching a new standalone app, "Douyin Mall Edition," in March. This app offers a complete shopping experience, including product search, price comparison, order management, and customer service.

Competitive Landscape:
- Pinduoduo's Performance: Continues to surpass market expectations with Q1 revenue growth of 131% (¥86.81 billion) and a 202% increase in net profit (¥30.60 billion). Transaction service revenue rose by 327%.
- Douyin's User Base: Douyin boasts about 800 million daily active users (DAU), significantly higher than Pinduoduo's peak DAU of 398 million during special events like Double Eleven.

Market Insights:
- Regulatory Context: Douyin's ambitious GMV target and strategies come amid intense competition in the Chinese e-commerce market, where price wars and innovative features play crucial roles in attracting consumers.

Conclusion:
Douyin E-commerce is aggressively positioning itself to compete with major players like Pinduoduo by focusing on price competitiveness, expanding its market through a standalone app, and leveraging its massive user base. The 2024 GMV target of ¥4 trillion demonstrates Douyin's commitment to significant growth and market share expansion.