8-6-2023 (LOS ANGELES) ByteDance-owned social media giant TikTok has set its sights on a significant expansion of its global e-commerce activities, with a goal of generating up to $20 billion in merchandise sales this year, according to insiders familiar with the matter, as reported by Bloomberg News on Wednesday. This ambitious target represents a substantial increase compared to the $4.4 billion in gross merchandise value achieved last year through its online marketplace, TikTok Shop. The company is banking on the growth potential of markets in Southeast Asia, with a particular focus on Indonesia.
As of now, TikTok has not responded to a request from Reuters for comment on these developments.
TikTok’s e-commerce platform enables users to purchase products directly through links provided within the app, particularly during live broadcasts. By tapping into the popularity and engagement of its user base, TikTok aims to leverage this feature and capitalize on the booming e-commerce industry.
This latest endeavor comes at a time when the Chinese-owned company is facing increased scrutiny from governments and regulators due to concerns over data privacy and national security. There have been apprehensions that TikTok, with its vast user base, could potentially be exploited by the Chinese government for data harvesting or to advance its own interests. Nevertheless, TikTok remains committed to expanding its e-commerce operations, with plans to target both the US and European markets in addition to its efforts in Southeast Asia.
Last year, the Financial Times reported that TikTok was in talks to form a partnership with TalkShopLive, a Los Angeles-based company, in order to launch its live shopping platform in North America. By outsourcing its operations to TalkShopLive, TikTok aims to tap into the North American market and capitalize on the growing trend of live shopping experiences.
