TikTok is "killing" headlines!

      As soon as November began, ByteDance threw a big melon to the market - organizational adjustment.

      This melon was released by the newly appointed CEO Liang Rubo, and in accordance with the principle of "closely cooperating business and team merge into business segments, and the general middle platform develops into enterprise service business", six major sectors will be established , among which Douyin, Dali Education and Chaoxi Guangnian are facing To C, Feishu and Volcano Engine are facing To B, and Tik Tok is facing overseas businesses.

      Among them, the most notable thing is that ByteDance's Toutiao, Xigua, Search, Encyclopedia and domestic vertical service businesses are included in the Douyin section .

      This adjustment seems to be to focus more centralized product firepower, and it is also conducive to high-quality products to drive the development of other products, open up traffic channels for each other, and create a closed loop of platform traffic.

      In addition to organizational adjustments, it is also necessary to manage the company's internal and eliminate bad sectors more regularly, such as the 1075 work system and commercial department layoffs.

      If the commercialization department is to cater to national policies, there will be no business that will be taken to the next level and will shrink its firepower range. Then organizational adjustment is to clarify ByteDance's business direction, and to shift from the strategic rapid expansion period in the past three years to the strategic contraction stage. Taking steady progress and focus on one point as the cornerstone, we will formulate the advantages and disadvantages of the company in long-term operations and determine the development policy.

      In addition, resource integration is more conducive to the operation of ByteDance's content ecosystem. At the same time, the adjusted TikTok and Volcano Engine can further enhance their status. After all, they have high potential for exploration for the population.

      In ByteDance's product line, To C business accounts for a large proportion, including Tik Tok targeting overseas To C people. Nowadays, domestic players with monthly active users over 100 million are universal, and people have to use applications such as Alipay and WeChat. As an entertainment-oriented application, Douyin may have reached a bottleneck .

      It is undeniable that Douyin is currently the largest source of revenue for ByteDance. In the advertising part alone, Douyin contributes 60% of the company's overall advertising revenue .

      The "cash cow" with such a strong ability to attract money occupies half of the market by relying on the huge size of its domestic market. It is understood that China's netizens reached 1 billion in 2021, while Douyin's DAU reached 640 million in September this year, accounting for 60% of the number of domestic netizens .

      Despite this, TikTok's DAU remained at 600 million as early as 2020, and there has been no significant growth since then. Another big shot in the short video field, Kuaishou, also has the same problem. Since Kuaishou proposed a daily active users target of 300 million in 2019, the DAU is still at 290 million+ in the first and second quarters of this year.

      Does this mean that the short video market has been saturated? As the number one short video player, Douyin has no template to learn from, so he can only cross the river by feeling his own way.

      Therefore, ByteDance has merged Toutiao and other businesses, which have already been weak in user growth, into the Douyin section, hoping to draw new increments . According to the huge calculations, the user overlap rate after Toutiao and Douyin was deduplicated in January 2020 was 32.1%, which means that there is still a considerable amount of user pool that can be developed by both parties, and new changes may be expanded.

      Since its establishment in 2012, ByteDance has become the fastest-growing Internet company in the past decade, with a business scope of more than 150 countries and regions , and a global number of employees reaching 110,000+ .

      From Toutiao to TikTok today, ByteDance has continuously polished new products with its unique R&D, and its business scale has blossomed at multiple points.

      Many product lines such as Xigua Video, Wukong Answers, Dongchedi, and Juliu Engine enrich ByteDance's arsenal. Then, to build "TikTok stores" and group buying methods, opening up the closed-loop channels of e-commerce may be the top priority of Douyin's current development plan .

      However, Douyin's e-commerce abacus does not seem to be smooth. In 2020, Douyin proposed to achieve the GMV target of 250 billion yuan, but the result was only more than 100 billion yuan, which is far from achieving the goal. This year, Douyin’s own e-commerce GMV target is 400 billion yuan. It is conceivable that under tremendous pressure, Douyin and ByteDance will definitely make a difference.

      This is also a good thing for the majority of e-commerce sellers. Whether it is cross-border e-commerce or domestic e-commerce, Douyin and Tik Tok are in a bonus period. Under the pressure of macro factors and market environment, ByteDance still needs to expand its traffic channels to inject new vitality into the business chain, and various benefits may follow.

      The market and capital are always paying attention to ByteDance. We will wait and see whether to break the bottleneck or usher in a new height under the leadership of the new helmsman!