On November 30 this year, Douyin Life Service announced that it plans to invest 500 million yuan in the next year to help merchants match more suitable talents, and at the same time bring more income to talents.
The reason why Douyin dared to invest 500 million yuan overnight has a lot to do with the growth trend of the life service market "far away", and it also has a lot to do with the operation of MCN institutions.
Nowadays, many people go to Douyin to buy food because of the shortness of some food experts. They usually buy the same product from the influencer while looking at the short ** of the influencer.
The latest statistics show that 25% of merchants on the Douyin platform operate on the platform through service providers, and the average monthly GMV of merchants served by service providers has increased by 15 times compared with the beginning of the year.
This also means that for Douyin e-commerce, the store exploration economy has just begun.
How likely is it that Douyin will counterattack in the field of life services?
Douyin entered the life service late, and it was not until 2021 that the life service was officially launched. At that time, the Meituan giant already existed in this market.
The difference is that after Douyin entered this market, it quickly grew into a new force that cannot be underestimated.
It is reported that as of October this year, the GMV of Douyin life services has exceeded 10 billion. Although it cannot be compared with Meituan in terms of scale, its year-on-year growth rate has reached 25%, and this business has only been launched on Douyin for 2 years, and it has developed its current status.
What's even more terrifying is that until now, Douyin has not really worked hard in the field of life services.
This is because Douyin's life service consists of two parts, one is ** and the other is takeaway.
Throughout 2020, Douyin's life service has been on the road of **. Although Douyin was also involved in the food delivery business at the time, it was basically only scratching the surface.
Douyin launched "Heartbeat Takeaway" in 2021. Now it seems that this business form can only be regarded as a scratch-style grayscale test done within Douyin.
It wasn't until August this year that Douyin reached a cooperation with Ele.me and officially finalized the takeaway business. At that time, the new model of short** + takeaway also brought new ideas to the entire industry. Of course, for Douyin's entry into the field of food delivery, the low-key Douyin said that this is just a routine cooperation, and the outside world should not have too deep interpretation.
At the same time, the number of food delivery partners on Douyin is growing. In addition to Ele.me, Dada, SF City, and Flash Delivery, they have all joined Douyin's life service team.
As of September this year, Douyin has launched food delivery services in more than 20 cities across the country. These cities include first-tier or quasi-first-tier cities, such as Beijing, Shanghai, Chengdu, and Shenzhen. The current business development is quite good.
Of course, just when Douyin is expanding its life services to the extreme, on the one hand, Big Brother Meituan is also taking action. On the other hand, other new players are also trying to rush in. The collision of several forces has filled the local life service market with more variables.
Since the beginning of this year, Meituan, the king of the life service market, has significantly increased its live broadcast efforts, attracting more and more merchants to settle in Meituan for live broadcast through marketing activities such as "God in Demand" and "God Coupon Festival".
In March this year, word-of-mouth was merged into AutoNavi Map, and the traffic of AutoNavi Map poured into Ali's local life sector, making the growth of Ali's local life in the later period more worth looking forward to.
In addition, Tencent launched the WeChat mini-program "Store Takeaway", the Pinduoduo app opened the "Local Life" entrance, and the "** Discount" interface also appeared on the Kuaishou page.
Obviously, for the "trillion-level" market of local life, many people are unwilling to watch others dominate, so even if they just come to occupy a seat, they are declaring their existence.
With Meituan in front and Kuaishou and Pinduoduo behind, can Douyin really fight back in local life?
In this regard, Zhu Shiyu, president of Douyin Life Service, responded: Life service is a huge market of more than 10 trillion yuan, and in fact, the proportion of online completion is actually very small, far from the point of stock competition.
* Originated from the Internet, if not only insiders, we can easily use "over the trillion level" to describe the life service market, but the real master will be accurate to the "10 trillion level" and see that this market is constantly cutting. Divided into different markets such as restaurants, hotels, and cinemas.
The implication: The annual income of 10 billion yuan of Douyin life service is just an appetizer?