TikTok confirmed canceling its plans of expansion. The company, however, articulated its commitment to the UK shop’s success.
TikTok has reportedly terminated intentions to bring the live e-commerce feature to the US and some parts of Europe. The decision comes after a failed experiment in the UK where the store hardly made any business alongside other internal challenges.
TikTok and Its E-Commerce Activities
According to a Financial Times report, the company set up shop in the UK last year marking its first market debut outside Asia. The new shop opened doors for companies and influencers to start selling their merchandise via the QVC-mode live shop, but this was only short-lived as influencers quit.
With the collapse of the UK outlet, TikTok had to rethink its plans to expand to the US and other parts of Europe like Germany, France, Italy, and Spain. People close to the expansion strategy disclosed the termination of the expansion plan to the Financial Times, citing the decision by influencers to abandon the project.
Per one of the company employees, the UK market remains low in both consumer awareness and adoption. Speaking to Financial Times, the employee opined that most Livestream TikTok shops in the UK delivered abysmal sales disregarding numerous attempts to motivate brands and influencers to promote the app.
TikTok confirmed canceling its plans of expansion. The company, however, articulated its commitment to the UK shop’s success.
Livestream Shopping Growing Popularity
According to Financial Times, the popularity of Livestream shopping continues to grow in Asia and China especially.
TikTok’s parent company, ByteDance, has in fact achieved remarkable sales on the app’s Chinese sister app called Douyin, recording thrice as many sales in subsequent years.
Per TechCrunch, TikTok is experimenting with a “shop” feed tab purposely built to allow users to browse and buy products from multiple categories like clothing and electronics. This new feed tab feature is in the testing stage across the Indonesian market serving as a hub for products sold in TikTok’s shop.
The shop feed tab works like Instagram’s 2020 redesigned shop tab under the Meta-owned platform, which operates as an avenue where users can search for products from their preferred brands. The advancement comes as TikTok looks to scale the ladder against competitors like Facebook and Instagram.
The launch of the Shop feed tab is an obvious indication of TikTok’s plans to strengthen its commitment to Asia’s market while pulling back on investments in certain under-performing markets.
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.
Binancechain News
Ecosystem
News Network
About CcS News
Swap & Stake