Recently, EAST BUY held an extraordinary shareholder meeting. The meeting released several important messages, including the update on the rumored collaboration between EAST BUY and TikTok. According to insiders, the previous news was true, and the company will cooperate with TikTok on overseas supply chains.
Over the past two decades, from the proliferation of internet and smartphones to the rise of streaming platforms, the domestic e-commerce industry has matured and the market has gone near to saturation. After reaching the possible market ceiling, leading e-commerce live-streaming companies are redirecting their focus to the broader, more opportunistic global market. TikTok, with its tremendous popularity, large active user base and extensive market coverage, has morphed into a massive pool of data, giving rise to incremental commercial activites on the platform. It is foreseeable that in the future, TikTok will become the preferred destination for many e-commerce platforms venturing abroad, attracting more Chinese businesses and brands.
Early market rumors surrounding EAST BUY's joing hands with TikTok have been confirmed by this recent extraordinary shareholder meeting, indicating that the collaboration primarily revolves around the overseas supply chain. This message is further validated by the company's official website, on which multiple positions, such as TikTok Overseas Store Operations, Content Operations Manager, and Business Manager, are open to recruitment. Combining the latest confirmation of collobration with previous moves, EAST BUY's overseas market exploration has formed a clear trajectory.
Addressing the challenges posed by the "double reduction" educational policy, EAST BUY charted a course into the live streaming arena. On December 28, 2021, the company premiered its first live broadcast. Six months later, in June 2022, following the successful debut of Dong Yuhui, EAST BUY projected phenomenal growth and amassed millions of followers. Shortly after, the company began to lay out overseas business strategies. Once the media reported that many former EAST BUY staff had received invitation letters to apply as TikTok streaming hosts. In the same year, the company posted positions relating to TikTok streaming. In early 2023, its parent company applied to register multiple "EAST BUY" trademarks, involving various categories such as convenience food, scientific instruments, and website services. This year, with the release of TikTok-related positions, EAST BUY has once again accelerated its pace to develop abroad.
With EAST BUY turning its focus to oversea markets, the topic of leading e-commerce companies expanding abroad has once again sparked discussions. Some insiders have pointed out that the advantages of domestic enterprises exploring cross-border e-commerce stem from the strong supply chain, experience in short video streaming, and complete infrastructure, whereas the disadvantages relate to the integration of cultural values and the operation methods of global teams.
For EAST BUY, collaborating with TikTok surely marks a milestone. The company has strong supply chain management capabilities and ensured product quality, which enable it to win the trust of overseas customers, lift brand profile and expand business extensively. Nevertheless, EAST BUY's overseas layout will encounter some challenges as well. It will be necessary that the company take into account varied factors such as cultural differences, laws and regulations, and competitive environment, and make adjustments in product selection and marketing strategies accordingly.