TikTok is testing U.K. waters with its new feature, Trendy Beat, in its existing TikTok app. It is foraying into the competitor space of Amazon (NASDAQ:AMZN) and Pinduoduo (NASDAQ:PDD), who already have a presence in similar products.
Also, yesterday TikTok COO V Pappas announced that she is stepping down from the role after serving for five years. CEO Shou Chew revealed in an email to employees that Zenia Mucha, a 20-year veteran at Walt Disney Co, will join TikTok as chief brand and communications officer. Also, TikTok’s chief of staff, Adam Presser, has been named the company’s head of operations.
Beating Around “Trendy Beat”
Looking to expand its online retail offerings similarly to its Chinese parent company ByteDance, TikTok has launched “Trendy Beat” within the TikTok app. The new feature is termed “Project S” and Bob Kang, the e-commerce chief at ByteDance, is reportedly heading the new project.
In TikTok’s newly launched feature, U.K. users can now see an exhibit of items that have gained popularity on videos, the Financial Times reported. The advertised items are China’s home-developed and are sold by a Singapore-based company held by ByteDance.
TikTok’s existing marketplace TikTok Shop has reported success in Southeast Asian markets – Indonesia and Vietnam. However, it saw difficulty in pulling consumers in the U.K. market, where it was launched over two years ago. TikTok Shop enables external vendors to sell items on the platform. It earns a marginal commission on every order.
However, ByteDance is expected to hold all the sale proceeds made through the Trendy Beat feature on TikTok as it seeks new avenues of revenue. ByteDance plans to go public through an initial public offering (IPO) in two years from now and hence requires justifying its $300 billion valuation.
TikTok’s Efforts to Boost Business
In May, TikTok announced that it is realigning its e-commerce business to bring back focus on the U.K. and U.S. markets. It undertakes this strategy in replacement of expansion in other Western markets.
TikTok’s new shopping feature is similar to that of peer company Amazon, which creates and promotes its own popular products. Also, it competes with fast-fashion brand Shein and Temu, a social media-driven app associated with Pinduoduo, which specializes in affordable product offerings.
How Popular is TikTok?
A recent Forbes article indicated that platforms like TikTok are here to be the most powerful marketing stages for a brand to stay closest to consumers. In Q4 2022, TikTok reported $350 million in in-app revenue, which is $205 million higher than the combined in-app revenue from Meta Platforms’ (NASDAQ:META) Facebook, Instagram, Twitter, and Snapchat (NYSE:SNAP).
