TikTok Shop is winning markets and territories
TikTok Shop is winning markets and territories. Indeed, the livestreaming business is growing so well that some analysts think that Amazon is on its crosshairs. I am not sure about that since it is not everything that would be stream-shopped. Nonetheless, the business model of video shopping is growing across the emerging world. As Nigeria’s broadband network improves, this will become part of the playbook for innovators and shoppers.
- Inside a shophouse in Northeast Jakarta, dozens of salespeople take turns peddling cosmetics, contact lenses and hair accessories. A woman helps a potential customer choose the right shade of lipstick for her skin tone, while a man yells out the latest markdown on vitamin tablets.
This is no raucous flea market. It’s a livestreamed marketplace within TikTok, and a gold rush for entrepreneurs seeking fortunes on the world’s most popular short-video app. For the company, best known for viral dance challenges and owned by China’s ByteDance Ltd., TikTok Shop is its fastest-growing feature with a burgeoning fan base in Southeast Asia.
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Its success in the region is crucial for TikTok as it faces a possible ban in the US on national security concerns. It also provides the company a template to take on Amazon.com Inc. in a way that no social media company has attempted before, provided it’s allowed to keep operating in the US.