On April 8, DouYin E-commerce staged its first Ecosystem Conference in Guangzhou. In the keynote speech, Kang Zeyu, President of DouYin E-commerce, proposed the concept of “interest e-commerce” – a type of e-commerce driven by people’s passion for quality life and aiming to satisfy consumers’ implicit needs while improving their life quality.
In recent years, algorithm-based interest recommendation technology has continued to advance, automatically linking massive Internet content and Internet users with an enormous amount of commodities. This has also laid an ideal foundation for the connection of “people”, “goods” and “platforms”, the three major elements of new consumption in the mobile Internet era. DouYin proposed the very concept of “nterest e-commerce” in view of the critical role played by interest recommendation technology in increasing conversion rates, guiding consumer demand, and enhancing user experience.
This coincides with Joy Spreader’s (06988) philosophy of data, algorithms and interest recommendation technology serving online news consumption. By analyzing commodities, video contents, and behaviors of fans, Joy Spreader recommends to Internet celebrities products that cater to their fans’ interests so that products match consumers, thereby helping a great number of less-known Internet celebrities to monetize through “interest e-commerce” and helping manufacturers with precise and targeted distribution by applying “interest e-commerce”.
Joy Spreader is one of the first marketing technology companies to develop video-based e-commerce. As early as January 2019, Joy Spreader became one of the first service providers to monetize through providing video content under DouYin, as well as one of the first companies in the industry to apply interest recommendation technology to carry out performance marketing services.
In the first E-commerce Ecosystem Conference, DouYin said it would launch three supporting programs next year to help 1,000 merchants achieve annual sales of over RMB100 million, 10,000 high-quality celebrities to achieve annual sales of over RMB10 million, and 100 high-quality products to reach annual sales of over RMB100 million.
DouYin also said that, according to third-party calculations, the GMV of interest e-commerce will exceed RMB9.5 trillion by 2023 with an increasing number of players in the e-commerce industry switching to interest e-commerce.
The enormous future market space also brings great development opportunities to marketing. Joy Spreader, a marketing technology company with an early entry and a technology path in line with future trends, has already obtained first-mover advantages. According to its annual results, video-based e-commerce, mainly comprising non-live streaming e-commerce to sell goods in DouYin, is becoming an essential driver for its revenue and profit growth of Joy Spreader. In 2020, Joy Spreader’s annual GMV of e-commerce products reached HK$594 million, representing a year-on-year increase of 353.92%. The ratio of gross profit of e-commerce has doubled from 15.75% in 2019 to 31.50%.
Committed to building an “interest e-commerce ecosystem”, DouYin serves top Internet celebrities to enhance presence, improve quality, and enlarge scale. However, in the trillion-yuan market, in addition to top Internet celebrities, the less-known content publishers are in urgent need of monetization, and ecological service providers like Joy Spreader are able to provide sound services for them. Services of Joy Spreader can truly help more DouYin accounts monetize in the DouYin ecosystem, further enhancing user retention, user activity, and becoming a critical part of the DouYin ecosystem.
Topic: Press release summary