After visibility: Data as a factor of production in Douyin e-commerce

Since 2020, Douyin, an app known for its interactive entertainment and vibrant youth cultures, has risen to dominance in the retail sector. Douyin stands out by making paid traffic a significant revenue stream alongside commissions. This strategy, which restricts organic growth, compels sellers to make additional investments in traffic. Drawing from Douyin walkthroughs and the company's business development presentations, this article analyzes how audience attention and platform traffic are manufactured and integrated with retail in the context of China's recent national policy that positions data as a factor of production equal to labor, land, technology, and capital. In contrast to Instagram, traffic conversion into sales takes precedence over product visibility on Douyin. In this process, Douyin actively uses user data to manufacture high-traffic keywords with buying intent. This involves measurements employing surveillance technologies that span image and speech recognition, keywords, performance metrics, and pricing algorithms. The article argues that Douyin e-commerce cannot be fully explained by the current visibility research paradigm centered on metrics such as likes, shares, and comments, which are considered indications of interests and preferences. It is suggested that Douyin uses historical data to invoke momentary interests and produce desired user actions for conversion. Traffic investment alone cannot result in the conversion of momentary interests into sales; it needs to be combined with pricing that incorporates discounts, coupons, and reductions. The integration of traffic investment with pricing strategy has emerged as a dominant e-commerce practice that fosters retail growth.