In recent weeks, users in some countries have begun seeing a new shopping feature in the TikTok app called “Trendy Beat” — offering items popular on the platform, such as ear wax removers or pet hair removal brushes from clothes.
TikTok is preparing a plan to expand into online shopping. Photo: FT
All of the advertised items were shipped from China, sold by a Singapore-registered company owned by TikTok’s Beijing-based parent company ByteDance, according to records and people familiar with the operation.
The model, similar to how Amazon creates and promotes its own best-selling items, represents a major shift from TikTok’s current shopping marketplace, which now allows vendors to sell items through TikTok Shop, taking a small commission.
TikTok says it is currently testing the feature. “We are always exploring new ways to enhance our community’s experience, and we are in the early stages of testing new shopping features,” the company said.
ByteDance is looking for new revenue that could justify its $300 billion valuation, making it the world's most valuable private startup, ahead of an expected initial public offering in the next two years.
TikTok said the brand used a network of suppliers to produce items for its Trendy Beat service.
ByteDance has been pushing to expand its e-commerce services, following the successful model of Douyin — the Chinese version of TikTok — which has sold more than 10 billion items annually. ByteDance is expected to generate $85 billion in revenue by 2022, the majority of which will come from its China business.
TikTok's marketplace, TikTok Shop, has been successful in Southeast Asian markets, including Indonesia and Vietnam, but has struggled to gain traction in European or North American countries.
Mai Anh (according to FT)
Source
Comment (0)