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Text/Mantis Finance (ID: TanglangFin)
Author/Chen Xiaojiang
On January 19th, "Douyin Pay" was officially launched in the Douyin APP. In addition to Alipay and WeChat Pay, users added a new option when paying on Douyin.
At present, Douyin Payment has supported ten bank card binding, including Postal Savings Bank, China Merchants Bank, Agricultural Bank, Construction Bank, and Bank of Communications. The payment function covers multiple aspects such as recharge, cash withdrawal, transfer and inquiry. And adopt a free policy in terms of service fees, and the heart of vigorous promotion is well known to passers-by.
Not long before, according to many media reports, Douyin has successfully replaced Pinduoduo as the exclusive red envelope interactive partner for the 2021 Spring Festival Gala. At the same time, the Bytedance Recruitment website also temporarily added 57 "Spring Festival Special" recruitment positions, including 56 R&D posts and 1 product manager post.
At the moment less than a month before the Spring Festival Gala, Douyin temporarily expanded its troops, won the "Spring Festival Gala Red Packet Interaction Right" without hesitation, and quickly launched "Tik Tok Pay". Douyin's intention to use the Spring Festival Gala red envelope to fight a "sneak attack" on the payment battlefield is already obvious.
However, under the market structure where Alipay and WeChat Pay have an absolute advantage, especially when Douyin itself supports WeChat Pay and Alipay, it is not clear whether users are willing to tie their cards to "grab red envelopes". According to the relevant person in charge of Douyin Payment in an interview with 36 krypton, the launch of "Douyin Payment" this time is to supplement some of the current major payment methods and better serve Douyin users.
Therefore, "Mantis Finance" believes that Douyin "sends" to the Spring Festival Gala and distributes red envelopes, rather than aiming at "payment" to complement the ecology and build a closed business loop. Rather, it is a key defense battle against Kuaishou and WeChat video accounts.
On the one hand, the Spring Festival Gala has always been an important battlefield for major Internet giants to compete for users and break the circle of brands. WeChat, Alipay, Baidu, and Kuaishou have all made their efforts here. Douyin itself is also an important partner of the 2019 Spring Festival Gala and has benefited a lot.
On the other hand, Kuaishou will most likely be successfully listed before the Chinese New Year this year. With the help of listing voice and resources, it is an easy decision for Kuaishou to make a wave of vigorously expanding customers during the Spring Festival.
In addition, the video number has undergone a major revision some time ago after achieving explosive growth in 2020. Nowadays, the video account is basically completed in terms of content and commercial ecological layout, and the use of the Spring Festival is another good thing for WeChat. The case of using the Spring Festival Gala red envelope to make WeChat Pay successfully "sneak attack" Alipay in one fell swoop, it is difficult to say that it will not be repeated on the short video track, which also makes Douyin unpredictable.
It can be seen that Douyin won the exclusive right to interact with the Spring Festival Gala red envelopes, and is the first to "occupy the pit", not only for the consideration of winning new weapons for itself, but also for preventing major competitors from "sneak attack" with the help of the Spring Festival Gala.
1. Alipay and WeChat Pay are the two dominant players. What is Douyin's intention to "sneak attack" through the Spring Festival Gala red envelope?
Using the red envelope delivery peak during the Spring Festival Gala for marketing, expanding its own payment channels, and even recruiting new users, has long been a tacit end-of-year drama by major Internet companies.
According to media reports, Pinduoduo, who previously withdrew from the Spring Festival Gala cooperation, originally intended to use the Spring Festival Gala red envelopes to vigorously promote its "Duoduo Wallet", and the same is true for today's "Tik Tok Pay".
In recent years, major Internet companies have continued to make efforts in third-party payment, especially in 2020. In January 2020, Pinduoduo acquired "Pay Pass" to obtain a payment license. In September, ByteDance obtained payment licenses through the acquisition of Hezhong Payment and Ctrip through the Shanghai state-owned enterprise Oriental Huirong. In November, Kuaishou also obtained a payment license through the acquisition of Yilian Pay.
Before obtaining the payment license in September 2020, ByteDance has obtained three financial licenses for online small loan license, insurance broker license, securities investment and consulting practice qualification. Subsequently, in November and December, ByteDance also won the payment domain name "douyinpay.com" and the trademarks of "doupay" and "Douyin Pay".
After obtaining the payment license and the online small loan license, ByteDance also launched two credit products-the small loan product "self-operated reserve fund" and the credit installment product "Dou installment". At present, Dou installment is only open to some users. It can be used to purchase products in Douyin live broadcast and Douyin stores, as well as Dou+, which supports up to 36 days interest-free and 3, 6, 12 repayments, etc.
In addition, according to the company's data, on January 12, Hainan Zitiao Commercial Factoring Co., Ltd., a subsidiary of ByteDance Group, was established. Its business scope includes commercial factoring for licensed projects, general project financing consulting services, and Financing guarantee services, corporate credit investigation and evaluation, bankruptcy liquidation services and corporate credit investigation services, etc.
As can be seen from the above, the layout of Bytedance in the financial sector has taken shape. Therefore, it is the right time for Douyin to win the red envelope interaction right of the Spring Festival Gala, strike while the iron is hot, and promote Douyin payment and related businesses.
On the one hand, payment, as an indispensable part of the closed-loop business of major platforms, can not only improve its own business ecology and indirectly weaken competitors, but also bring enough room for imagination to develop financial businesses. Earlier, Meituan wanted to cancel "Alipay Payment" in the APP, and "Dou installment" was also called "Tik Tok Huabei" in the industry.
On the other hand, winning the payment license can also save the platform a lot of payment channel fees. Take Kuaishou as an example. According to its prospectus, from 2017 to 2019, the payment channel fees Kuaishou paid to Tencent were 59 million yuan, 142 million yuan, and 219 million yuan respectively. By the first half of 2020, with the rapid development of Kuaishou live broadcast e-commerce, the cost has reached 184 million yuan.
However, although the giants of all parties are jealous of third-party payment, the current dominant situation of Alipay and WeChat payment may be difficult to break for the time being. It is not easy for Douyin to use this to share the payment market pie.
According to the data of the Prospective Industry Research Institute, as of the fourth quarter of 2019, Alipay and Tencent Tenpay (including WeChat Pay) have firmly ranked among the top two mobile payments, occupying 55.1% and 38.9% of the market share, respectively. The market concentration of both exceeds 90%. By 2020, according to iResearch's "2020Q2 China Third-Party Payment Market Data Release Report", Alipay and Tenpay still occupy 55.6% and 38.8% of the market respectively, and their advantages are still obvious.
In addition, from the product level, in the 2015 Spring Festival Gala red envelope interactive activities, WeChat payment can achieve an explosion, inseparable from the social key chain behind WeChat.
"Shake it" through WeChat, not only can shake the red envelope, but also shake the blessings, greeting cards, interactive pages, and uploading family portraits and other interactive content. However, these content can spread quickly because of the existence of a social relationship chain. More importantly, at that time, the coverage of mobile payment was limited. WeChat Pay just seized the opportunity of rapid expansion of mobile payment and covered a wide range of people.
On the other hand, Douyin, although it has made many efforts on the social level, it has not made much progress at present, which has greatly reduced the power of the Spring Festival Gala red envelopes. At this time, there are many mobile payment methods. In addition to WeChat Pay and Alipay, almost all of them, such as Meituan, Didi, Kuaishou, Pinduoduo, and JD, have their own payment channels, which can cover all aspects of users. For example, on Douyin, there are existing channels for Alipay and WeChat payment, and the demand for users to bind their cards through Douyin payments will naturally decline.
Therefore, "Mantis Finance" believes that Douyin Pay wants to replicate the feat similar to WeChat Pay in 2015 through the Spring Festival Gala red envelope interaction, which is almost impossible to accomplish. Its impact on the entire third-party payment market is also quite limited.
However, through the Spring Festival Gala red envelopes, we took advantage of the opportunity to obtain a large number of card-bound users, and took advantage of the trend to put a wave of advertisements for "Tik Tok Pay", so as to make up for the shortcomings of payment channels, and build a closed business loop to pave the way for subsequent financial business. But it is a "gifted" opportunity. This is also an important reason why Douyin did not hesitate to "go to" the Spring Festival Gala.
2. Kuaishou grabbed the listing "match point", the video number suddenly broke out, Douyin launched a defensive battle on the Spring Festival Gala
In addition to promoting its own payment channels, improving the closed-loop business, and sharing third-party payment cakes, "Mantis Finance" believes that there is another important reason for Douyin to win the Spring Festival Gala red envelope interactive cooperation, and that is to prevent the "sneak attack" of Kuaishou and the video account during the Spring Festival. .
At present, the user dividend in the short video industry has disappeared, and Douyin has become the short video platform with the largest number of users in one fell swoop. Douyin has changed from an attacker to a defender today.
According to the data disclosed by all parties, the current daily activity of Douyin (including Douyin Volcano) is 600 million, and Kuaishou’s daily activity is 305 million. The video number exceeded 200 million in June this year. According to Founder Securities’ forecast, the peak DAU of video number has reached 350 million. Some insiders even said that the DAU of WeChat video has reached 450 million.
Therefore, from the perspective of users, Douyin is bound to be the first to approach the industry ceiling. For Kuaishou and video accounts, there is still much room for accelerating the penetration of Douyin to "grab users." Therefore, for the video account and Kuaishou, this year's Spring Festival is a good opportunity to attack, and for Douyin, it is a defensive battle that cannot be missed.
First, with the help of video red envelopes and live New Year greetings, the video account will launch a fierce offensive.
Last year, Tencent Microvision took out 800 million cash to upgrade the video red envelope gameplay, launching "1 penny big battle", "red envelope experience gold", "video egg red envelope" and many other gameplay methods, which advanced the video number of this year's video red envelope. Preview.
Not long ago, WeChat will only allow specific brands to customize the red envelope cover authority, and delegate it to the individual creator of the video account-that is, the video account is opened and the video number certification (interest certification, professional certification) is completed before the exclusive red envelope cover can be customized. , And reduced the price of custom red envelope covers from 10 yuan/piece to 1 yuan/piece. The red envelope has been passed in advance to empower the video number.
At the same time, creators can put up to 5 small 15-second videos in the red envelope, and the jump from the red envelope to the video number is estimated to be completed before the Spring Festival.
A few days ago, in the 2021 WeChat Open Class PRO, Zhang Xiaolong used 40 minutes to talk about the video account and 20 minutes to talk about the live broadcast of the video account in a one and a half hour speech, releasing a signal that the video account has become an important strategic weapon for WeChat. In addition to video red envelopes, live New Year greetings will also be another big killer for video numbers.
Different from last year's Weishi, because the video account has been embedded in the WeChat ecosystem and has become a "new ID" for WeChat users, it inherits almost all of the "social assets" of WeChat users.
Therefore, "Mantis Finance" believes that the impact of video red envelopes on video numbers is far from last year's microvision. Although it may be inadequate compared with the WeChat red envelopes of the year, Douyin had to guard against it. TikTok seizes the interactive pit of the Spring Festival Gala red envelope, which is equivalent to winning a defensive "shield".
Secondly, Kuaishou took the lead in Bytedance after it was listed before, and has already seized the initiative at the capital market level. Later, Bytedance (including Douyin) will face more stringent scrutiny. More importantly, Kuaishou has launched fierce attacks on Douyin's traditional strengths (advertising) and emerging businesses (e-commerce), and Douyin also needs a defensive battle.
For a long time, relying on strong operations and control of public domain traffic, as well as the strong commercialization foundation of the byte bounce system, Douyin has led Kuaishou in commercialization (at the advertising level). However, after Kuaishou launched its IPO, breakthroughs have been made in its online marketing services throughout 2020.
According to the Kuaishou prospectus, as of September 30, 2020, the revenue of online marketing services in the first three quarters of Kuaishou reached 13.3 billion yuan, a substantial increase from the 7.4 billion yuan in 2019.
And according to Internet analyst Pei Pei’s estimation, by the end of 2020, Douyin’s Adload (ad load rate) is about 16-18%, while Kuaishou is only 4-5%. Although Kuaishou Adload may never reach the level of Douyin, Kuaishou's potential in this area is still not small, and Douyin's upward expansion space is relatively limited-more ads may bring greater user experience influences. This is also an important reason why Douyin will focus on its e-commerce business in 2020.
Douyin e-commerce has set a GMV target of 200 billion yuan in 2020, and Kuaishou's target is 250 billion yuan. As of September 30, fast hand e-commerce GMV has exceeded the 200 billion yuan mark, reaching 204.1 billion yuan. It is reported that by November 2020, Kuaishou e-commerce GMV has exceeded 300 billion yuan.
For Douyin, although in 2020, the introduction of leading anchors such as Luo Yonghao will achieve a breakthrough in e-commerce. But for now, there may still be a gap from Kuaishou. Taking the head anchor carrying GMV as an example, it is still difficult for Douyin to match the head anchors of families such as Kuaishou Simba. Therefore, the importance of accelerating the creation of a closed-loop Douyin e-commerce ecosystem has become more and more prominent through vigorous "Tik Tok payment".
Finally, the reason why Douyin has achieved rapid growth at the user level in the past is that in addition to its focus on head content creation, its products adopt full-screen immersive viewing, and the good user experience it brings is also a great contribution.
Nowadays, after the 8.0 version of Kuaishou line and the major revision of the video number, a full-screen immersive way to watch short videos is provided. Because the users of the two are equally huge, they have a lot of precipitation in short video content (the video number content is temporarily lacking). Therefore, from the perspective of user experience, Douyin's previous advantages will gradually weaken, and as the content of the video number increases, this gap will become smaller and smaller.
Especially in addition to algorithm recommendations, Douyin actually has a disadvantage compared to Kuaishou and video accounts in terms of social chain distribution. As the value of private domain traffic becomes more prominent, it remains to be seen how much potential Douyin's strong public domain traffic value can release beyond advertising. Take e-commerce as an example. For the time being, the potential of Kuaishou and video accounts may be slightly better than Douyin, and this is the key to restricting Douyin's subsequent search for a second increment.
From this perspective, Douyin also needs a new "marketing war" to use offense as defense to consolidate existing advantages in this Spring Festival.
It can be seen that although Douyin is now leading the video account and Kuaishou in terms of short video users. However, in the face of the two major rivals of Kuaishou and the video account, the former has the leverage to go public, while the latter is in a state of rapid outbreak, which means that this year's Spring Festival will be a battle in the field of short video.
Winning the right to interact with the Red Envelopes of the Spring Festival Gala is the best position for Douyin to take advantage of this year's Spring Festival. This is not only about "Tik Tok Pay", but also whether Douyin can resist the momentum in this year's Spring Festival battle. The fierce impact of the fast hand and the video number waiting to be sent.
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