TikTok is a short-form video hosting service that has become one of the most popular social media platforms in the world. Originally launched in China in September 2016 as Douyin (抖音), it quickly gained popularity domestically before expanding internationally as TikTok in 2017. TikTok enables users to create, watch, and share short videos that are typically 15 to 60 seconds long. It offers a range of video editing tools that allow users to add music, filters, effects, and more.
Since its launch, TikTok has experienced explosive growth. According to House of Marketers, it surpassed 1 billion monthly active users in 2021, making it one of the most popular apps globally. TikTok’s growth has been powered by its addictive short video format, algorithmic recommendation engine, and integration of trends and challenges that encourage participation. It has become a hub for viral content and launched the careers of many influencers and creators.
The Rise of Douyin in China
Douyin, which launched in China in September 2016, quickly rose to become one of the most popular short video apps in the country. Developed by the tech company ByteDance, Douyin was created specifically for the Chinese market as a localized version of ByteDance’s similar app TikTok, which was aimed at international audiences outside of China.
Within its first year, Douyin had garnered 100 million users in China alone. Its userbase skewed young, with about half of its users aged 24 or under. Douyin became a cultural phenomenon among Chinese youth, who enthusiastically embraced the app as a platform for viewing, creating and sharing short-form videos set to music.
Key Differences Between TikTok and Douyin
While TikTok and Douyin share the same foundation, there are some key differences between the Chinese and international versions of the app. According to marketingtochina.com, the apps have noticeable differences in their user interface and features, censorship and content restrictions, and marketing and ad platforms.
Some of the main differences in the user interface and features include:
- Douyin can only be downloaded from Chinese app stores, while TikTok is available worldwide.
- Douyin has some China-specific features not available on TikTok, like purchasing products directly within the app.
- TikTok tailors the user experience and recommendations to each local market, while Douyin focuses solely on Chinese users.
In terms of censorship and restrictions, Douyin is subject to China’s strict internet regulations. Content considered inappropriate by Chinese authorities, like politically sensitive topics, is heavily restricted. TikTok does not face the same level of censorship.
Finally, the apps have some major differences in their advertising and marketing capabilities. According to digitalcrew.com.au, Douyin provides more e-commerce features that allow users to shop directly, while TikTok focuses more on building brand awareness.
Douyin’s Parent Company ByteDance
Douyin is owned by ByteDance, a Beijing-based technology company founded in 2012 by Zhang Yiming. ByteDance has grown to become one of the most valuable startups in the world, with a valuation of over $400 billion as of 2021.
Beyond Douyin, ByteDance owns a portfolio of popular apps. This includes TikTok, the global version of Douyin aimed at markets outside of China. It also owns Byte, a Vine-like short form video app, as well as Toutiao, a popular Chinese news aggregator app.
ByteDance has raised significant venture capital funding to fuel its growth. It raised $3 billion in 2018 from investors like SoftBank and KKR. Overall, ByteDance has raised over $7.4 billion to date from leading investors.
Douyin’s Business Model
Douyin primarily generates revenue through advertising. Its advertising model includes short in-feed videos, brand takeovers, and in-feed native ads. According to a 2019 analysis, Douyin made over $7.4 billion in advertising revenue in 2018.
Like other social media platforms, Douyin also generates revenue through e-commerce and live streaming. Users can purchase products directly within the app during live streams. According to a 2019 Master’s thesis from ETH Zurich, Douyin’s average revenue per user was estimated to be around $7 annually.
Douyin’s revenue grew over 300% from 2017 to 2018. Its success has been a major contributor to parent company ByteDance’s overall revenue growth. ByteDance generated over $7 billion in revenue in 2018, with over 67% coming directly from Douyin according to an analysis cited on Scribd.
Douyin’s Popularity and Userbase
Douyin has become an extremely popular app in China, amassing over 600 million daily active users as of 2021 according to Statista. Its massive userbase consists primarily of young people, with around 70% of users being under 30 years old. This youthful demographic has helped fuel Douyin’s influential culture around influencers and trendsetting.
Douyin’s short video format spread widely in China, giving rise to hugely popular influencers and online celebrities. Top Douyin influencers like Zhang Dayi and Li Jiaqi have tens of millions of fans each. Live-streaming features on Douyin also enabled the rise of gifted content creators who can earn millions from virtual gifting from fans. This influential creator culture made stars out of everyday people and shaped youth culture and trends in China.
Government Restrictions
The Chinese government imposes strict regulations on Douyin due to censorship and data privacy concerns. All social media platforms in China are required to closely monitor content and restrict anything deemed inappropriate or illegal. According to Technology Review, Douyin uses both algorithms and human moderators to review content and block keywords, images, videos or accounts that mention politics, adult content, or other prohibited topics.
In September 2021, Chinese authorities mandated that Douyin impose a 40-minute daily time limit for users under 14 years old in order to protect minors. BBC News reported this policy restricted usage to just 14 minutes between 6am to 10pm on school days. The Chinese government has gone even further than TikTok’s limits aimed at teens in Western markets.
The heavy censorship and restrictions on Douyin limit the creativity and content diversity compared to TikTok. Chinese users are unable to post political critiques, LGBTQ content, or other topics frowned upon by authorities. The focus is shifted more towards light-hearted entertainment and popular culture. While this creates a safer environment for minors, it reduces the platform’s ability to share more serious subjects.
Competition with TikTok
While TikTok has seen massive success globally, the app has struggled to gain traction within China against the dominant presence of Douyin. TikTok’s parent company, ByteDance, launched Douyin for the Chinese market in 2016. With its early mover advantage and localized features, Douyin quickly amassed a large user base and retains extreme popularity in China today. According to estimates, Douyin had over 600 million monthly active users in China as of late 2021, compared to only around 40 million for TikTok in the same market.
The two apps are similar in function but have significant differences in their content and features that cater to each geographic market. Douyin’s content focuses more on skills, tutorials, and slice of life while TikTok features more entertainment, humor, and memes. TikTok also lacks Douyin’s advanced e-commerce functionalities. Given Douyin’s entrenched position in China, it has proven difficult for TikTok to gain traction against its viral success.
The competition also extends to international markets like India where TikTok saw early popularity but later faced regulatory crackdowns. As TikTok retreated from India, Douyin swooped in under the name Resso to try and capture the market. However, Resso has also struggled to take off in India against fast growing competitors like Moj and Josh. While TikTok and Douyin may dominate their respective home markets, competition remains fierce in international expansion.
Douyin’s Global Expansion
In 2017, ByteDance launched TikTok for international markets outside of China, aiming to replicate the success of Douyin globally. TikTok tapped into the global demand for short-form video content and quickly became one of the most downloaded apps worldwide (Aaronhall, 2022).
TikTok saw rapid growth in India, amassing over 200 million users by 2019. However, it was banned that year along with other Chinese apps amid data privacy concerns. TikTok faced similar regulatory hurdles in the US, with threats of bans over data sharing with China. To ease concerns, ByteDance made moves like establishing TikTok headquarters in the US and ringfencing American user data (Linkedin, 2022).
Despite setbacks, TikTok has achieved tremendous popularity, especially among younger users drawn to its addictive vertical video format. As of 2022, TikTok hit over 1 billion monthly active users globally across over 150 countries (Interconnected, 2022).
The Future
Douyin has seen tremendous growth over the past few years, but the platform still has challenges and opportunities ahead as it looks to further expand its userbase and features.
One of the biggest opportunities for Douyin is global expansion. Though Douyin and TikTok essentially operate as the same app, TikTok is much more popular and widely-used outside of China. Douyin will likely aim to grow its userbase, content creators, and utilization in markets outside of China, particularly Southeast Asia.1
Douyin also has major potential to further develop its e-commerce functionality. The platform is already a hotbed of social commerce activity in China, but analysts predict Douyin’s retail e-commerce sales will grow 60% in 2023 as it adds more shopping features and partnerships.2 This could allow Douyin to take on rivals like Alibaba.
However, tighter government restrictions present a challenge for Douyin. China has been cracking down more on its tech giants, so Douyin faces greater regulatory scrutiny. Issues around data privacy, content restrictions, and monopolistic concerns may limit Douyin’s growth and expansion moving forward.
Competition with TikTok also persists, especially as TikTok grows its presence across the globe. As two versions of the same platform, Douyin and TikTok will need to co-exist and likely cater to different markets. But their futures remain intertwined.
While uncertainties remain, Douyin has rapidly become a cultural phenomenon and economic powerhouse in China. The platform’s continued innovation and understanding of Chinese users will shape its trajectory in the years ahead.