ByteDance launches its own TikTok online store – Kommersant
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Chinese company ByteDance, owner of the popular video service TikTok, has launched Project S to expand its presence in the online retail market. According to Financial Times, a couple of weeks ago, the company introduced the Trendy Beat feature inside the TikTok app. Now users are invited to purchase products from popular videos.
ByteDance has been in the online trading business for a long time. In particular, she owns the TikTok Shop platform, through which third-party sellers can sell their goods by paying a small commission. This application is quite popular in Asia, in particular in Indonesia and Vietnam. However, in the UK, where it launched two years ago, TikTok Shop has failed to catch on.
ByteDance has other online trading apps that are not related to TikTok. For example, more than $10 billion worth of goods are sold through the Douyin app annually. ByteDance’s total trade revenue was $85 billion last year, but most of this amount comes from China. At the same time, according to two employees of ByteDance, in the history of the company there were three applications for shopping – Dmonstudio, Fanno and If Yooou, but all of them ended up either closed or abandoned.
Experts believe that Trendy Beat is an attempt by the company to enter European markets, as well as launch a different online trading model. Unlike the TikTok Shop, all advertised merchandise here will be manufactured by ByteDance contractors, sourced from China, and sold by ByteDance’s Singapore-based subsidiary. And instead of being content with a commission on sales from third-party sellers, the Chinese company will take all the proceeds for itself.
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