TikTok Dominance Surges amid Competitive Social Media Market

The co-founder of ByteDance, the company responsible for the ever-popular TikTok (known as Douyin in China), has become the richest person in the People’s Republic of China.

Zhang Yiming, a Chinese internet entrepreneur, is now worth US$49.3bn, according to a rich list produced by the Hurun Research Institute. His net worth has increased by 43% since 2023 alone and can be attributed to the COVID-19 pandemic success of video social media app, TikTok.

The 41-year-old stepped down from his role at the helm of ByteDance in 2021, but is reported to own roughly 20% of the firm,. 

The news comes as the social media and streaming markets continue to grow worldwide, as the consumption of digital media becomes more ingrained into our everyday lives.

The continued success of TikTok

TikTok has quickly become one of the most popular social media apps in the world. First launched in 2015, it became an instant success with young people around the world, as it consists of short-form videos submitted by users.

Owned by ByteDance, co-founded by Zhang Yiming, users of the smartphone app have risen so much that it surpassed two billion mobile downloads worldwide in 2020 during the pandemic. TikTok has also been hailed for its ability to use recommendation algorithms to connect content creators with new audiences.

With this in mind, it is safe to say that the consumption of media and entertainment has irreversibly changed. This is the case particularly after the global pandemic which saw more people than ever before turning towards their screens. 

As a result, streaming services and video apps have become increasingly popular, particularly in locations like the US, with Forbes reporting that 99% of US households now subscribe to at least one or more streaming services, including the likes of Netflix, Amazon Prime Video and Apple TV+.

Such widespread adoption highlights why TikTok has become so successful, as people increasingly move away from more traditional ways of consuming media.

A dynamic Chinese market

The social media market in China only continues to increase, particularly with the success of TikTok. More than 1.4 billion Chinese internet users are active online to connect with others.

According to Comms8, China holds the ability to stand out in such a market due to its unique landscape of social platforms. Whilst the West predominantly engages with Facebook, Instagram and X (formerly Twitter) - all banned apps in China - China instead harnesses TikTok (Douyin) and shopping apps like Taobao to engage its regional users.

In fact, Statista found in 2022 that around 84% of Chinese consumers were shopping on social media platforms.

However, despite TikTok’s successes, there are concerns in parts of the world about how the app could be giving data to the Chinese government - something ByteDance strongly denies. The US in particular is eager to ban the app in January 2025, unless the company sells TikTok, despite the organisation saying it operates independently of the Chinese government. 

Legislation was passed by the House of Representatives earlier in 2024. If the bill were to become law, ByteDance would have nine months to find a buyer for TikTok, or face a ban.

Despite pressure mounting from the US, ByteDance’s global profit has only continued to soar - rising 60% in 2023, according to the BBC, which has in turn contributed to Zhang Yiming’s significant increase in fortune.

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