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ByteDance, Pinduoduo launch foreign e-commerce sites to challenge Amazon

ByteDance, Pinduoduo launch foreign e-commerce sites to challenge Amazon
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TikTok owner ByteDance has launched a women’s fashion website called If Yooou. Pinduoduo has launched an e-commerce site called Temu in the US. The two companies are the latest Chinese tech giants to crack the international e-commerce market dominated by Amazon.

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pinduoduo And TikTok owner ByteDance has launched e-commerce websites overseas in the past few months, as it aims to take a crack at selling Chinese products to overseas buyers.

The move sets the two Chinese tech companies on a collision course amazon As they expand internationally.

Pinduoduo, one of China’s largest e-commerce companies, A US shopping site named Temu has launched Last month, it sold products in categories ranging from fashion to sports and electronics.

A few weeks later, ByteDance, the Beijing-headquartered owner of short video app TikTok, launched a fashion website called If Yooou. It is currently shipping to the UK, Spain, Italy, Germany and France.

Both companies are said to be looking to replicate the success of Chinese fast fashion brand Shayne Now worth $100 billion and has found a large customer base in the US and elsewhere.

ByteDance and PinduDuo are also relying on cross-border e-commerce — selling Chinese products to overseas customers. The US and European markets also present an opportunity for growth.

The overseas push comes at a time when China’s tech giants are looking for new ways to grow as the domestic economy grows Challenges continue to be met As a result of Beijing’s strict Covid containment policies and the deteriorating global macroeconomic environment.

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“I think ByteDance and [Pinduoduo] are taking the opportunity to apply their unique social commerce innovations to overseas markets, Jacob Cook, CEO of WPIC, an e-commerce technology and marketing firm that helps foreign brands sell in China, told CNBC.

Pinduoduo declined to comment for this story, while ByteDance did not respond to a request for comment.

Pinduoduo and ByteDance e-commerce strategies

Pinduoduo’s cross-border e-commerce strategy, also known as PDD, and ByteDance will differ due to their different strengths.

In China, PDD has grown rapidly by building direct links with suppliers and offering large discounts. This can help in sourcing products to sell in the US and at lower prices.

Meanwhile, ByteDance runs TikTok — one of the world’s most popular social media apps.

ByteDance’s algorithm for understanding consumers on Tiktok, “as well as the potential to take advantage of the TikTok ecosystem for commerce, is a huge advantage,” Cook said.

The Chinese company is not new to e-commerce abroad. In the UK, it has a shopping feature on TikTok where brands and influencers create videos on products and users can buy those products through the app.

But still not successful.

[Pinduoduo and ByteDance] Faced with low brand recognition and need to build user trust.

Dmonstudio, a women’s fashion site that previously launched ByteDance, shut down after just a few months of operation. And Fano, another e-commerce site by ByteDance, hasn’t gained much traction.

So-called livestream shopping is very popular in China and some Asian countries, but it hasn’t really taken off in Europe or the US. financial bar reported in July that TikTok had abandoned plans to expand its livestream e-commerce strategy to Europe and the US

This could be one of the reasons why ByteDance is an e-commerce shopping website that survives with its TikTok shopping strategy.

ByteDance and Pindududo are new Chinese firms looking to expand into international markets. alibaba And jd.comChina has two of the largest e-commerce companies Expanded overseas in the past few years.

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One reason is that consumer behavior outside of China favors Amazon’s model, according to Cook. Customers typically go to Amazon to find specific products or brands they’ve already decided to buy, he said.

In contrast, Chinese platforms like Alibaba’s Tmall and JD.com “act like virtual shopping malls where people are browsing and participating in a digital social experience.”

Pinduoduo and ByteDance “could eat away at certain sectors of Amazon like Shain did, but ultimately they won’t choke Amazon out of the U.S. e-commerce market,” Cook said.

“They face less brand recognition and need to build user trust.”

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