(Yicai Global) Jan. 30 -- Short video platform Douyin, the Chinese version of TikTok, launched its supermarket business in China on Jan. 28, selling fast-moving consumer goods not including fresh produce.

Douyin Supermarket, a business under Douyin E-Commerce, aims to compete with online giants Alibaba Group Holdings’ Tmall Supermarket and JD.com's supermarket business.

The products sold include tissue paper, alcohol and beverages, electrical appliances, grain and oil, and personal care products and other consumer goods. It also supports payment apps like Douyin Payment, Alipay and WeChat Pay.

The laundry detergent, shampoo and toothpaste sold in Douyin Supermarket are all FMCG products with high consumption frequency, which can increase that frequency and user engagement, the National Business Daily cited Zhuang Shuai, founder of Beijing’s Innovative Business Institute, as saying. It can also improve gross merchandise volume and advertising revenue.

Douyin Supermarket chose not to cover fresh food, although it was involved in a pilot last year. The fresh food business has very high requirements, which are currently difficult for Douyin Supermarket, according to Zhuang.

“Fresh food e-commerce requires a strong supply channel and distribution capability,” Lin Yue, chief consultant of Lynear Consulting, pointed out. “Judging from the current layout, Douyin is unlikely to give up on this business.”

Douyin Supermarket also currently does not cover 3C products (computers, communications, and consumer electronics) other than iPhones, which is JD.com’s specialty.

Douyin is cooperating with third-party logistics companies, Zhuang said, claiming that the collaboration with SF Express and other logistics providers can fully support the current operation of Douyin Supermarket.

According to public data, the number of daily active users of Douyin exceeded 700 million last year. The review page for Douyin Supermarket already has 70,000 reviews from returning customers.

Editor: Peter Thomas