This is a typical Chinese-style disintegration-when a startup company is acquired by a large company, the founders of the team often choose to sit temporarily to stabilize the military. As for when to leave, it seems only a matter of time.

It is not uncommon for the founders to run away in the history of high-light mergers and acquisitions in the Chinese Internet circle. Compared with the limited space of a large platform, for the founders of the entrepreneurial team, the value and significance of continuing to stay is of little value. It is better to put it down and start all over again with a free and easy attitude.

However, in the new giant Bytedance, we seem to see a different style of painting-Zhang Nan, Yang Luyu, Zhu Jun and other outstanding founders of the acquired team are still on the front line of Bytedance today. Become a new hero of the byte empire to open up its borders and expand its territory.

How does ByteDance achieve a low churn rate of core talents in the Internet? Today, we want to turn our perspective to the inside, and talk about the super-high person imitation principle of byte beating, and how they get along with awesome talents.

I have heard many people complain to me that it’s too difficult to keep good people. Really awesome people won’t work for you. These people would rather start your own business than stay in a big company. Restricted everywhere.

Indeed, we have indeed seen too many such cases, and such complaints will surely resonate with many people. But before making the final conclusion, we might as well take a look at the case of byte bounce.

Zhang Nan, the current CEO of ByteDance China, was a product entrepreneur of social graph bar in his early years. After being acquired by Byte, he entered the headline and was responsible for the earliest product “intension”. In 2018, due to his outstanding contributions to Douyin, Zhang Nan was quickly promoted to President of Douyin. In 2019, he developed products such as Qingyan and Clipping. In 2020, he became the CEO of Bytedance China.

Yang Luyu and Zhu Jun, the founders and co-founders of Musical.ly, joined the company after being acquired by Bytedance in 2017. Currently Yang Luyu is in charge of an educational hardware product, and Zhu Jun Alex is the deputy of the Bytedance product strategy. President.

If ByteDance has an attractive magic, then what is this magic? With such questions, I started a case study for more than a year.

1. The company is also a product

In 2015, Zhang Yiming once had such a short Weibo: Develop a company as a product.

Zhang Yiming believes that when entrepreneurs start a business, they are actually working on two products at the same time.

One is the product provided to users, and the other is the product provided to employees, which is the company itself.

The CEO of the company is the product manager of these two products. He is responsible for linking the two ends, one is the business, and the other is the employee.

Some people may have questions. The company pays its employees wages and bonuses. How can employees be the company’s customers?

In fact, under the principles of economics, “employees contribute production factors to the company, and the company pays wages and bonuses to employees”. This matter is essentially the same as “the company provides products and services to customers, and customers pay for goods and services to the company.” They are almost the same, and they are all equivalent exchanges under the maximization of the interests of both parties.

“Benefit maximization” is a key indicator for all our decisions. Here we introduce a concept in economics-ROI (Return on Investment) to help us understand.

ROI, generally translated as “return on investment”, refers to the total economic return we can obtain from an investment.

Zhang Yiming once said: Many companies regard people as their company’s wastage cost, especially some CEOs are very economical and always want to hire some cheap people.

But this concept is clearly wrong in economics.

Although this person is very cheap, but can bring you very little return, or is lower than the salary you pay him, then the ROI that this person brings to you is negative. Although this person is very expensive, it will bring you greater rewards. Maybe this person is really cheap.

The same is true for employees, why is he willing to join your company, because joining your company has the greatest return on personal investment.

For the CEO, how to design the “company” product is to allow the company and employees to have the highest ROI at the same time, so that each other is satisfied with the return on investment.

So what factors determine the ROI of the company and its employees? I have listed the following formula.

Its size is mainly determined by four elements, which are the functional input (the time and money invested) at the denominator of the formula plus the psychological input (inner fatigue, mental anxiety); the functional return at the molecular end (long-term and short-term income) Plus psychological rewards (happiness, sense of accomplishment, growth).

If we want to maximize ROI, we actually have to do only two things, lower the denominator and increase the numerator.

How to maximize the ROI of employees?

Zhang Yiming disassembled byte’s talent mechanism into three points:

• First, return, including long-term and short-term economic returns;
• Second, growth, how much growth can be obtained on this platform;
• Third, the mood, whether you can work happily with the team and leaders, whether the cost of commuting affects your mood, and so on.

For example, how to reduce the functional investment at the denominator end. For example, HR suggested to provide employees with shuttle buses. Zhang Yiming said no, and directly gave employees a monthly rent subsidy of 1,500, allowing employees to rent houses near the company, saving transportation costs.

For another example, we know that many companies nowadays are all in the world, which reduces the efficiency of the company’s operations. We found that the general situation is that the person in the meeting took a long, long time to prepare the PPT. During the meeting, he was given 20 minutes to explain the content of the PPT to everyone. This time utilization is very, very low.

There is a department in ByteDance that specializes in improving the efficiency of conferences-Feiyuehui.

The first step in the meeting is not for everyone to talk about the PPT, but to send the materials you prepared to everyone in advance. After everyone has read it, directly insert their questions and suggestions through the Feishu (byte internal communication software). After 10 minutes, everyone began to discuss the inserted questions and suggestions, which effectively improved the efficiency of the meeting.

Another improvement is “space-time asynchronous”. In a meeting, not everyone will speak. Many people will come over with their computers and listen to them while dealing with their own affairs. Therefore, the Flying Reading Conference has also established a mechanism. If a person is only related to a certain topic in the meeting, then he does not need to come to the meeting. When the discussion reaches this link, he can be connected.

Second, reduce the psychological input on the denominator end.

One of the corporate culture of ByteDance is to create a “frank and clear” corporate culture, which can be understood as “dare to express real ideas face to face, oppose upward management, and be honest and direct.”

The “lack of honesty” here refers not only to malicious fraud, but also the inability to express ideas truthfully. In other words, although you did not lie, you did not express your opinions frankly. This is also a manifestation of inefficient communication.

For this, I am deeply impressed. A year ago, I went to ByteDance to talk about a consulting and cooperation project, and the teacher in charge of the reception gave me two points for attention.

First, when communicating with colleagues in our company, just call them by their first names, and don’t call them anything or something.

Secondly, our meeting room is only booked until 10 o’clock. One minute more will not work. You must go out at 10 o’clock.

Sure enough, when it was 9:59, someone knocked on the door outside, please end the meeting as soon as possible. The colleagues who were waiting outside also came in directly to start the meeting, and there was no extra polite thank you.

To work in such a work culture, our mood is very simple and pure, without any psychological pressure.

Sometimes, the key thing for employees is not only whether your salary is high or not, but also whether you have a fair evaluation of the work contribution of everyone in the company, and be fair and reasonable in all aspects of the process.

Third, increase the material return of molecular employees.

In terms of salary fairness, Zhang Yiming also raised many questions.

He said that by comparing salaries and performance, we found that salaries often exhibit various forms of premiums.

Such as premium for newcomers. This person jumps over, so how can we get a certain increase from his original salary? However, the high salary is likely to produce an unfair contrast to the fast-growing people in the original team.

How to deal with it? Zhang Yiming believes that the company should set a monthly salary according to the job level. The job level represents a stable monthly salary. If you make outstanding contributions, the company can use bonuses to reflect it. Secondly, let HR rather than the business director set the salary, and HR also does not refer to the person’s historical salary when determining the salary. HR will give a final offer based on the job level and comprehensive supply and demand in the talent market.

There is also an option issue.

When a startup company recruits people, because it is not attractive enough, it often gives some options. But the problem is that the larger the company is, the smaller the option pool is. At this time, we find that it is difficult for the diluted options to attract top talent.

Zhang Yiming also discovered this problem during the interview, because good candidates often tell him that today’s headlines are very good, but the best time to join you has passed.

The person who received option awards in the early stage, even if his contribution is relatively small later, but because his options are particularly large, he will get a lot of rewards. In other words, the identity of the employee who gets the reward is no longer an employee, but The identity of the investor.

how to solve this problem? The method given by Zhang Yiming is very simple. For early people, pay more bonuses and replace options with higher salaries.

Zhang Yiming said that an option is essentially a financial tool, and employees want financial returns. So we only need to give outstanding employees an excess financial return. He and HR said that as long as this person makes outstanding contributions, the employee can get a year-end bonus of up to 100 months of monthly salary at the end of the year.

So we can see why ByteDance can retain the core personnel of those excellent entrepreneurial teams. The reason behind it is that they have truly achieved Pay for Performance and treat your contributions fairly.

Every CEO and HR understand the two words fair, but it is very difficult to achieve it.

Fourth, improve the psychological returns of molecular employees.

Can employees grow when they come to this company? Are you happy at work? Can you give him a sense of accomplishment?

When I visited Netflix 4 years ago, I was deeply impressed by the concepts they advocated. Netflix said that the best benefits for a company to give employees are not cool team building activities or good coffee in the pantry, but recruiting even better employees than him, so that employees can interact with the best in the industry. Work together, this is the best employee benefits.

In a sense, Bytedance also practices this culture.

3. How to maximize the company’s ROI?

How to reduce the company’s total investment? Zhang Yiming also gave three criteria for their recruitment.

• Super learning ability;
• Unobscured;
• Mature in mind.

For Zhang Yiming, he wants to recruit the top people in the market. These people must use the highest salary level in the market to get them, including salary, bonuses and options to employees. The cost is relatively high. .

But at the same time, we found that after recruiting such people:

• The cost of company management has been reduced. Excellent employees are quick to speak and learn quickly. The training time and money the company spends on each employee has been reduced;
• The psychological investment that leaders spend on employees has also decreased. Everyone has a clear goal and performs their duties without losing the chain, and there is no need to worry that employees can’t stand the pressure, and our psychological investment will be greatly reduced.

Looking back, Zhang Yiming’s super learning ability, broad vision, and mature mind are actually using these three key characteristics to accurately hit the cost reduction of all elements except money to effectively maintain the company’s total investment.

At the same time, we also found that companies’ perceptions of outstanding talents are almost the same.

In 2016, I visited the headquarters of Didi Chuxing. At that time, I saw a value poster called the “Xiaoju Eyesight Chart” in their office, which wrote a few:

• Achieve others, recruit people who can become your boss after 5 years, with a broad vision and a big pattern;
• Putting down the glass heart and replacing it with a steel one is to recruit mature adults;
• Always accept challenges and regard growth as the most important thing.

Translated, these three indicators are almost identical to the three key indicators mentioned by Zhang Yiming. It can be seen that, from the perspective of economic principles, the logic of the outstanding talents pursued by the company is actually the same.

Secondly, increase the employee’s return to the company on the molecular side.

Zhang Yiming’s approach is to open up the boundaries of business without setting limits, allowing the entire company to grow rapidly. Because only in this way, these top talents can continuously create top returns.

Regarding talent recruitment, Zhang Yiming has a famous imitation of Munger.

• Never lose talent;
• Never forget the first one.

In Zhang Yiming’s view, this talent must come to me, and after he comes to me, he must also avoid being poached by competitors.

In fact, this is another abnormal thinking.

When we usually fancy a talent, if he is not the person I need in my business section, or he is unwilling to come over as a backup force, in the end I can only reluctantly give up and choose to let go.

But Zhang Yiming believes that what this person did before is not important, what is important is what you can bring to my company in the future? If my company does not have this business for the time being, as long as you are good enough and I prepare this business for you, why not?

As long as you can help me bring a higher ROI, we can do it. This is why we see why ByteDance now has so many APP products.

Fourth, through economic principles, create the optimal allocation of internal production factors

Finally, we can see that, in fact, the way Zhang Yiming gets along with awesome talents is to be able to use economic principles to create an optimal allocation of internal production factors.

Zhang Yiming has configured top company treatments, fair and transparent working mechanism, top talents in the industry, perfect administrative support, huge product flow, and high degree of freedom for excellent talents. All aspects make top talents unable to refuse and stay here. For themselves, ROI is already the greatest, so what reason do they have to go out and start their own business?

If a talent comes to you, the salary is average, the heart is very tired, and the space for exertion is small, this person should not work here.

You have no reason to keep this person, you are wasting social resources. Because the invisible hand of the market is here, the factors of production will flow to the optimal level, and they will flow to a more suitable position.

As Didi Chengwei said, the cognitive boundary of the founder is the true boundary of an enterprise. If others leave you, you may be the boundary.

5. Self-inspection checklist for startups

Finally, after talking about so many principles, how can we copy these methods into my company? I think there are two points that require special attention.

First, the byte method cannot be copied entirely.

Business growth and talent density must match each other. If the company’s business growth is slow now, we really cannot give employees the highest level of salary in the market in one step.

Therefore, we can’t copy all the byte practices. Rather than getting it in place in one step, it is better to move forward gradually.

Second, employees need to be viewed hierarchically.

For example, many senior executives are no longer so sensitive to money, but we are still giving them money in the wrong direction, or that many young people are at a time when their economic strength is very poor, and our company is constantly instilling a sense of mission and Corporate vision, in fact, the ROI we can obtain in the end is very low.

Finally, I have compiled two self-examination lists for you, and I hope it will be helpful to you.

Perspective 1: Self-check list for maximizing ROI of employees

1. What is the percentage of the employee’s effective and efficient working time in his total work-related time? Can it be improved?

2. Is there room for employees to reduce their own money investment in work? How to lower it? Such as canteens, gymnasiums, rental subsidies and so on.

3. Is there room for reduction in the internal distortion and internal friction of employees at work? How to reduce it? As a leader, do you respond to the needs raised by employees soon, or do you respond after a long time? Do you often have random meetings and assign tasks, disrupt the pace of other people’s work, and finally make employees have to work overtime to complete their work?

4. Does the company’s remuneration policy and option policy have any problems with acquaintance premium, newcomer premium, and seniority premium? How to pay fair based on performance and market level?

5. How to make employees grow rapidly at work? Do company leaders have coaching leadership?

6. How to let employees find a sense of accomplishment and work meaning in their work?

   Angle 2: The company’s ROI maximization self-check list

   

7. Does the company have a clear talent strategy? Are our talent recruitment standards clear?

8. Is there room for improvement in the effectiveness of the time spent on employees by leaders at all levels of the company? How to improve?

   Are leaders at all levels of the company exhausted and exhausted because their employees are immature and cannot improve their performance? How to improve?

   There are actually two logics.

   The first one is the ByteDance style, which recruits the best people with the highest wages.

   The second is Foxconn’s style of play. My average labor is very cheap, but I have established various standardized SOP processes, as long as people come to do it, and this method can also be successful. There is no standard answer to this question.

9. Are the leaders at all levels of the company exhausted and exhausted because their employees are immature and cannot improve their performance? How to improve?

10. Does the company have any problems with internal organization and inter-departmental cooperation? How to improve?

11. What is the company’s strategic growth rate? Can it match or even exceed the rate of talent growth? How to find more room for growth?

12. Do leaders at all levels of the company effectively coach employees and help them create the greatest contribution to the company?

    I hope that the above questions can help you improve your human efficiency and find some ways to improve gradually.

    Author丨Chaos University

    Source丨Official Account: Chaos University (ID: hundun-university)

    The dbaplus community welcomes contributions from technical personnel, and the submission email: editor@dbaplus.cn

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“Core Tips”

Swiping through Douyin, I found a local internet celebrity restaurant with cheap group purchase coupons on the short video. Is it easy to be planted? After failing to test the waters in 2018, Douyin is now back on the local life track, directly hitting the hinterland of Meituan through group purchase coupons. On “Eat, Drink, Play and Live”, short video content is naturally more intuitive than graphics. This time, how much threat does Douyin pose to Meituan?

Author| Shen Fangwei

Edit| Xing Yun

With high frequency, rigid demand, and mature monetization model, the local life track has always been an eye-catching “sweet and pastry”.

As the number one player, Meituan won the “Thousand Regiment War” and built a stable foundation with a strong push and a complete industrial chain.

In Meituan’s business, local life-to-stores and wine tours have always been the “cash cows” with the highest profit margins. In 2020, they contributed 21.3 billion yuan in revenue. Although the business volume is not as large as the takeaway, the operating profit margin reached 38.5%. , Far exceeding 4.3% of the food delivery business.

Nowadays, on the tables of some restaurants in Beijing and Shanghai, a TikTok QR code has been added, showing that you can enjoy discounts when you place orders with TikTok scanning the code.

Meituan and Wang Xing ushered in a new challenger-Douyin.

The byte system led by Zhang Yiming expands without boundaries. In 2021, Douyin has accelerated the promotion of local life business, and has tested water group purchases in many places. Since its official announcement in March, it has been launched in more than a dozen cities including Beijing, Shanghai, Guangzhou, Shenzhen, Nanjing, and Xi’an. The channel has even sunk to the district. County level.

This is generally regarded as a trick for Douyin to attack Meituan’s hinterland. The display of short video content is naturally more intuitive and more attractive than graphics and text. What impact will Douyin bring, and to what extent will it affect Meituan?

1. Douyin’s local life ambitions

   Since February 2021, at the top of Douyin’s same-city page in some cities, a “preferential group purchase” entry has appeared, covering gourmet dining, hotels and guesthouses.

There are also popular lists and heartbeat restaurants on the same city page, all with related video content. Taking Beijing as an example, there are games, accommodations, leisure and entertainment in the game popularity list, and some orders will be redirected to the same city and Ctrip. In other words, you can get services on Douyin for “eat, drink, play, and live” in this city.

Behind this is a new round of battles that Douyin has provoked in local life.

In internal testing in February, the group-buying business officially launched in March is a new attack by Douyin’s “local direct-sale business center” that specializes in expanding local life. It has been rapidly rolled out in first-tier and new first-tier cities.

According to “Latepost” report, this center was established in December 2020. After the original SMB (small and medium customer) business line was withdrawn, about 10,000 employees were transferred to the center in January.

In the second half of 2020, Douyin has taken intra-city, social networking, and search as the most important business lines in the future. This means that the 10,000-person team will focus on local life services such as life services, cultural tourism and catering for customer mining in the future.

This is not the first time that Douyin has tested the local life business, but it is the comeback of BYTE after its failed attack on the local life market.

As early as 2018, Douyin tried to set up a POI (Point of Interest) team, through small and medium-sized merchants to enter the enterprise number, test water coupons and third-party services, etc., but they were not ideal. The project was launched in 2019. Shut down.

According to a byte commercialization department employee told Leopard, that the POI project was resumed afterwards, and various voices filled the team. They believed that the POI click conversion rate was lower than 1%, the user trust was insufficient, and the video content and ecology were not enough. Rich, if you want to do a good job in local life, it is indispensable to deal with these problems.

Over the past two years, Byte has tried to solve such problems and has made a series of adjustments on both the product side and the operation side to help Douyin better adapt to the consumption scenarios of local life services.

Specific measures include, but are not limited to, the upgrade of information aggregation pages, the provision of multiple sets of independent jump menus to improve content scenarios, the introduction of enterprise account upgrades, the initiation of talent shop visits, and the launch of UGC content challenge activities for ordinary users to help the platform accumulate changes. Multiple content resources lay the foundation for restarting the in-store business.

The 2020 epidemic has led to a sharp drop in passenger flow, and a large number of small and medium businesses have begun to actively expand customer acquisition channels and try to participate in marketing cooperation on major platforms to increase store traffic and conversion effects.

During this period, Douyin launched the shop-discovery group plan, with more than 10,000 fans and users who publish high-quality eating, drinking, and grass-planting videos can apply for this service. More shop-discovering videos have also enriched Douyin. Local ecology.

In the coming year, the strong push + Tandian group model will become the main strategy and specific play for Douyin to return to the battlefield of local life.

1. Differentiated competition Douyin focuses on new merchants + waist merchants to acquire customers

   However, in the current market, Douyin Group Purchase does not directly compete with Meituan’s traditional business, but has opened a differentiated route in all aspects.

   The first is the difference in price.

   Leopard Change noticed that compared to Meituan’s 60% to 80% discount, 2 to 40% is a common price for Douyin. Among the many shops recommended by Shanghai, most of the merchants’ thousand-yuan package price is only 100- It ranges from 300 yuan.

   How can TikTok group purchase be cheaper?

   

   The answer comes from two aspects. The first is the lower entry threshold and the difference in commissions. Meituan merchants need to pay a certification fee of 1,800 yuan, and online group purchase packages need to pay 5-10% of the transaction volume per order.

   In contrast, TikTok group purchase only requires merchants to register as users, pay 600 yuan to register a certified company number, and then participate in the gameplay, and there is no commission on transactions, which encourages merchants to give more powerful discount packages and increase the effectiveness of promotion. .

   The second is the precise grasp of the positioning of the target business customer group. A staff member of Douyin told Leopard Change that promoters are more inclined to choose two types of businesses as potential promotion targets.

   One category is businesses that have been included on platforms such as Meituan Dianping for a certain period of time, but have low overall scores and are eager to improve their reviews; the other category is new businesses that have just opened and have the attributes and characteristics of Internet celebrities. The two types of stores are more difficult to get customers in Meituan Dianping, but they all have a certain budget and room for profit.

   After joining Douyin, merchants generally encourage users to write reviews on Dianping and use keywords such as “yindou” to bypass the system shielding, prompting Douyin to buy group meals at a cheaper and more convenient price, and attracting more users who read reviews to Douyin. sound.

   At present, Douyin’s local life is still in the stage of promotion and small-step running trials. There is no subsidy plan for the time being, and the opening city has not yet set growth targets, but it does not rule out the provision of subsidies during rapid expansion in the future.

   In addition to lower prices than Meituan, creating the illusion of “taking advantage” is also one of the reasons for the large discounts on Douyin.

   Take a French restaurant in Jing’an District of Shanghai as an example. The restaurant offers a pasta menu price of 66 yuan, but the group purchase package offered on Dianping shows the price is 88 yuan, while in Douyin’s 2.4% off package, the price of pasta Rise to 188 yuan.

   A catering practitioner believes that in the local life business of Douyin based on content recommendations, not only a sufficient number of talents are required to produce high-quality videos for users to plant grass, but it is also important to create the illusion of “taking advantage”. Therefore, businesses have false reports. Price, the phenomenon of large discounts.

   In contrast, merchants that have ranked at the top of Meituan Dianping are currently less interested in Douyin group buying. The manager of a 4.77-point Yunnan restaurant chain restaurant in Beijing told Leopard Bian that the restaurant had several promoters visited in early April. , Hoping to launch group purchase packages but were rejected.

   There are two reasons for refusing to join Douyin: first, the price has become reasonable, and there is no room for profit; second, the store has established a reputation and has sufficient customer sources. If you blindly expand new customer groups in the short term, it may not only increase the waiting time in the queue. , Reduce the user experience, and may also cause the loss of existing customer groups.

2. It is difficult to sting Meituan in the short term, but the war in local life will never stop

   Douyin has great ambitions for local life, but it is different from Meituan’s play, and there is a huge difference in the scenes between the two.

   When people go to a restaurant to pay for a meal, they are used to opening Meituan and commenting to see if there are any coupons available. Behind Meituan follows an active search model to solve the deterministic needs of users.

   Douyin uses short videos to solve the random demand. Going to an Internet celebrity restaurant and buying group purchase coupons, this kind of random link will eventually need to be consumed in the store to complete. How high the conversion rate can be is a question.

   According to “LatePost” report, as of March 2021, the GMV of Douyin’s local life business that month was less than 40 million yuan.

   The basic disk of Meituan’s business far exceeds that of the current Douyin.

   

   At the same time, on the path of realization, Meituan’s local life business follows the high-frequency demand for takeaways to drive low-frequency and high-profit in-store business such as medical beauty and life services. In the past ten years, Meituan has established a solid local life network in nearly 2,800 cities at or above the county level through 9.5 million riders and powerful combat forces. It has an absolute advantage in urban coverage and business categories. , Users and businesses have established an unshakable and stable triangle relationship.

   The TikTok recommendation mechanism based on content and algorithms requires dual requirements for content and promotion, and rapid expansion is not easy.

   First of all, if a new area has not accumulated enough local grass-growing content, it lacks the core motivation to attract consumers to pay. The current 10,000-person push team can only help Douyin in a small area in some first- and second-tier cities. Promotion.

   An anonymous Meituan employee also revealed to Leopard Bian that the Dianping team has launched a response plan based on Douyin’s strategy, but it has not yet announced it. In the past few years, Dianping’s UGC content ecology has also become more abundant, and a route similar to Douyin’s explorer has already existed. Currently, it is not panic about Douyin’s entry into local life.

   In his view, in today’s local life service market, new entrants cannot change the complete service system of Meituan Dianping only by relying on traffic. However, Douyin has not yet established a complete offline service system.

   The iiMedia Consulting report shows that in 2019, the overall revenue of the in-store service industry reached 200 million yuan, with a steady growth rate of 7%-10% per year, while the current online rate of catering is only 12.7%. The forerunner of this track may have flourished, but there is still a lot of room for development.

   Previously, a Byte of internal interview minutes circulated in the market showed that the GMV target for local life in 2021 is 6 billion yuan. The report on April 21 showed that before February this year, BYTE’s goal for local life for the whole year was to buy GMV in the store to reach 20 billion yuan by the end of 2021, and the person in charge of the giant engine responded that there was no decision. Under the target of 20 billion GMV.

   In addition to Douyin, Kuaishou, another giant in the short video camp, as well as Alibaba, Baidu, and Didi, who have been deeply involved in the Internet for many years, all have deep or shallow participation in the local life track. Under the rapid disruption of Douyin, other players are also ready to move.

   The singularity of the reversal of the situation in this game has not yet come, but a trend is already foreseeable, the war in local life will never stop.

This also means that Zhang Yiming can actually enter the 2021 Forbes list of the top 20 richest people in the world, with Tencent’s Ma Huateng, Nongfu Spring’s Zhong Suisuan and the Walton family of Wal-Mart in the United States.

In the 2021 Forbes Global Rich List, US$60 billion is undoubtedly the ticket to enter the TOP20

ByteDance, known for its short video application Douyin and Toutiao, a news aggregation platform, has continued to expand from its core advertising business to e-commerce, online travel, online education and other fields in recent years.

According to people familiar with the matter, this expansion strategy has allowed ByteDance to more than double its revenue in 2020 year-on-year to about 35 billion U.S. dollars, and its operating profit has increased to 7 billion U.S. dollars.

At the same time, because TikTok, the overseas version of TikTok, is facing censorship in the United States and India, Zhang Yiming put more energy on Bytedance’s just-started and fast-growing Chinese business, including games, education, and e-commerce.

There are also many media reports that with the growth of the business scale, the Bytedance Flag is bound to face greater competitive pressure. In this context, Bytedance has begun to consider pushing some of its businesses into the securities exchange market for public offerings. (ipo ).

In March of this year, ByteDance hired former Xiaomi executive Zhou Shouzi as its chief financial officer. In the eyes of the outside world, this “heritor” who helped Xiaomi’s listing will also play a vital role in the final listing of Bytedance.

In February 2021, ByteDance’s direct competitor Kuaishou landed on the Hong Kong stock market and raised US$5.4 billion, becoming the largest listed Internet company after Uber Technology. The competitor’s outstanding achievements have also allowed the capital market to constantly focus on the possible future IPOs of Bytedance.

On the other hand, Ma Rui, a partner of Synaptic Ventures, a venture capital firm, said that Zhang Yiming hopes to establish a long-term and lasting global enterprise, and short-term setbacks in the company’s business will not shake his determination.

According to data from the American research organization CB Insights, in addition to the current market rumored 250 billion US dollars, Bytedance was valued at 180 billion US dollars in the latest round of financing in December last year, compared with only 200 billion US dollars three years ago. Billion US dollars, which reflects the high growth of Bytedance’s valuation.

According to media reports, the valuation of Bytedance is still growing, which for Zhang Yiming undoubtedly represents a greater scale of wealth.

Source: Zeng Xiantian, ZAKER News