the “high-speed internal circulation” of douyin e-commerce: the transformation from traffic to product value

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on the one hand, douyin's powerful traffic algorithm provides huge opportunities for e-commerce platforms and promotes a rapidly growing business model. white-label live streaming e-commerce companies use crazy traffic investment, price involution and human efficiency involution as their core strategies, and rely on the continuous control of product costs to pursue short-term profits. they have achieved great success in the "boiling" dividends of douyin e-commerce, but at the same time have also brought huge problems:

1. lack of product quality and brand value: white-label merchants regard "product cost", "investment flow" and "traffic" as crucial, and ignore the construction of high-quality products and brands. this leads to the continuous emergence of "explosive" products, but lacks long-term development and user accumulation, and the market competition is becoming increasingly fierce.

2. depends on traffic algorithm: douyin's e-commerce algorithm makes it easier for the platform to judge and review product quality. this has also led to the widespread spread of inferior products such as "fake moutai" and "copycat mooncakes" on the platform, and even became popular products, which has brought negative experiences to users.

3. neglecting brand building: douyin e-commerce relies too much on traffic and market competition, and neglects brand building and long-term development.

4. "bad" metabolic cycle: the crazy involution of white-label merchants has forced the platform to pay the price for their "involution" behavior, and these prices are the loss of douyin e-commerce's own value and user experience.

however, the "high-speed internal circulation" of douyin e-commerce is not the end, it may also become a path of learning and growth.

as a social organization with an annual revenue of nearly 1 trillion yuan and over 700 million monthly active users, douyin should attach importance to product quality and brand value, and actively explore a healthier and more stable business model. only by relying on high-quality products and brands can we truly gain users' long-term trust and sustainable development.

future options:

• douyin e-commerce needs to reflect on its own business model, shift from "traffic first" to "quality first", and pay attention to product quality and brand value.
• douyin e-commerce should strengthen supervision and management of white-label merchants and establish a more stringent product review mechanism to ensure the healthy development of the platform.
• douyin e-commerce also needs to cooperate with high-quality merchants to jointly create high-quality products and brands and ultimately achieve long-term development.

i believe that in the future, douyin e-commerce will be able to provide users with a better shopping experience in a better way.