ByteDance, a Chinese company that owns TikTok, withdrew its support for its e-commerce app only nine months after its launch.
The company continues to shut down struggling business units amid a slowing economy and strict regulatory environment in China.
ByteDance Shuts Down Douyin Box
According to SCMP, ByteDance launched Douyin Box in December 2021. On Thursday, Sept. 8, ByteDance decided to no longer update the platform, and the Douyin Box employees will be given a chance to transfer internally within the company.
Before shutting down the platform, ByteDance updated the platform every nine days.
The last activity of Douyin Box was on Aug. 31 when it posed on its account on Douyin, the Chinese version of TikTok, and when it posted on Weibo on June 24.
The platform is still available for download as of Thursday, Sept. 8, according to Techmeme.
What is Douyin Box
Douyin Box has an interface that is similar to Douyin. It was designed to be an extension of the video app, allowing users to watch videos and live streams from Douyin that promote merchandise, most of them targeted at young shoppers, like apparel, handbags, and cosmetics.
ByteDance created Douyin Box in hopes of capturing new traffic and attracting more shoppers to its site.
However, Douyin already has an online shopping feature that allows users to place orders and make payments.
Since Douyin already serves as a one-stop shop, Douyin Box was deemed unnecessary.
Influencers who promote their products on Douyin and Douyin Box get more traffic from the former than the latter, so most of them do not post on their Douyin Box account anymore.
According to SCMP, one influencer posted a top and pair of dark blue jeans on her Douyin account, and it got 110,000 likes. Meanwhile, she posted the same thing on Douyin Box, but it got zero response.
China's Worsening Economy
ByteDance has been retreating from unprofitable businesses as tightened regulations, and economic downturn weigh on the Chinese internet industry.
Chinese Premier Li Keqiang said in early September that the country's businesses were facing more difficulties compared to 2020 when the COVID-19 pandemic began.
The Washington Post reported that ByteDance was downsizing its video gaming unit. It resulted in mass layoffs and the transfer of hundreds of employees.
In early September, ByteDance chief executive Liang Rubo told the employees that many of the company's businesses failed to meet expectations and that ByteDance planned to reduce input into noncore businesses.
ByteDance was once called the app factory of China, and it is known for its fast pace in creating and launching new apps, as well as discontinuing underperforming ones.
The company had shut down Dmonstudio, a fashion shopping app, and Kesong, a social media app, just months after its launch due to underperformance.
Despite the discontinuation of Douyin Box, ByteDance has doubled down on its e-commerce business elsewhere, including in Southeast Asia, where TikTok dipped into online shopping promotional campaigns.
In China, ByteDance is expected to reach $143 billion in 2022. That includes the company's gross merchandise volume and measure of sales in its businesses.
Related Article : ByteDance's Douyin is Currently Working on a Food Delivery Service to Rival Alibaba and Meituan
This article is owned by Tech Times
Written by Sophie Webster
