ByteDance-owned Douyin said to miss first-half e-commerce sales goal amid weak consumption

Douyin recorded a lower-than-expected gross merchandise value of US$193 billion in the first half, according to a Chinese media report

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Douyin’s gross merchandise value growth rate is expected to hit 24 per cent in 2024, a steep decline from the previous two years, according to a Goldman Sachs estimate. Photo: Shutterstock

Published: 8:00pm, 25 Jul 2024Updated: 8:30pm, 25 Jul 2024

ByteDance-owned Douyin, the Chinese version of global hit short video platform TikTok, missed its target gross merchandise value (GMV) in the first half of 2024, according to a local media report, amid weak consumer spending and increased competition in the domestic e-commerce market.

Douyin, which launched a stand-alone shopping app in March, recorded a lower-than-expected GMV of 1.4 trillion yuan (US$193 billion) in the first six months of the year, compared with its previous goal of 1.5 trillion yuan, according to a report on Thursday by Chinese media outlet 36Kr, which cited an unidentified source.

Douyin’s e-commerce growth rate slowed to 30 per cent after the second quarter, down from more than 60 per cent achieved in January and February, according to a report by LatePost.

That was in line with a June estimate by Goldman Sachs, which forecast Douyin’s GMV growth rate to hit 24 per cent this year, a steep decline from 60 per cent and 80 per cent in the previous two years, respectively.

A representative of Douyin’s e-commerce unit on Thursday said the 36Kr report was inaccurate, but declined to comment on the LatePost’s account of slowing growth.

Douyin, which has more than 600 million daily active users on the mainland, does not disclose financial results because it remains private, just like its Beijing-based parent ByteDance.