(Yicai) March 6 -- Douyin, the Chinese version of TikTok, has introduced a series of initiatives to support small and medium-sized merchants in a bid to entice more onto the short video platform.

The measures include subsidies, lower commissions, and free training programs, Beijing-based Douyin announced yesterday.

The move aims to enrich Douyin's ecosystem through preferential policies, thereby attracting new vendors to join, Zhuang Shuai, a retail e-commerce expert, told Yicai.

Last month, online shopping giant JD.Com announced a similar subsidy policy for its new food delivery service JD Takeaway. It is offering merchants who join before May 1 one year free of commission.

While both JD Takeaway and Douyin operate in the local life services industry, the former competes in the delivery business while the latter competes in the in-store business, Zhuang explained.

The in-store business involves purchasing group-buying or cash vouchers online and redeeming them at physical stores, while the takeaway business includes the delivery of food and retail products ordered online to buyers’ homes.

The Chinese on-demand service market is dominated by Meituan and Ele.me, but it is still common for new players, such as JD Takeaway, Douyin, and Kuaishou, to enter the market, despite their impact being limited, according to Chen Liteng, a digital lifestyle analyst at website 100EC.

The subsidy strategies launched by smaller market players are unlikely to greatly impact the leading position of Meituan within the next five years, Zhuang predicted.

Editor: Futura Costaglione