05 July 2022

TikTok ends livestreaming e-commerce plans for Europe and US

Social media platform TikTok has scrapped plans to expand TikTok Shop, its livestreaming e-commerce initiative, into Europe and the US, according to reports*.

Context 

Livestreaming e-commerce has been hugely successful in China, TikTok’s home market, and in the past year parent Bytedance has launched the product across southeast Asia, in Indonesia, Thailand, Malaysia and Vietnam. It was introduced to the UK in 2021, its first market outside Asia, with plans to expand into Europe and the US in 2022. 

Having seen the success of livestreaming e-commerce in China, social platforms everywhere are looking to jump on the bandwagon and grab a slice of commission on sales. YouTube and Instagram, for example, have been developing similar features.

Why it matters

TikTok’s experience in the UK suggests that western markets aren’t yet ready for this sort of shopping, although whether that’s because of a lack of inclination or a lack of awareness may be a subject for debate.

What does seem clear is that the UK failed to meet targets, despite TikTok offering subsidies and cash incentives to encourage brands and influencers to sell through the app, the Financial Times reports. And now influencers are dropping out, while brands are said to be uncomfortable with the level of discounting on their products. 

Culture clash

The FT has also reported on the high staff turnover at TikTok Shop in the UK, where employees have complained of unrealistic targets and a “toxic” working culture. 

*UPDATE: TikTok has since refuted these claims, saying it had never planned to launch in Europe in 2022 and is focused on getting its UK offering right. 

Sourced from Financial Times, Campaign