TikTok is also reportedly planning to build its own product fulfillment center in the United States, according to an Axios report last week. Amazon.
TikTok Shop, a marketplace built into the TikTok app that makes it easy for users to transact while watching short videos and live streams, has already launched in the UK and six Southeast Asian countries, including Singapore and Indonesia. increase. The Americas is the next stage in its expansion plans as TikTok focuses more attention on its new service.
A U.S. launch is planned by the end of the year and Brazil by the first half of 2023, an accelerated timeline over previous plans to launch in the South American country in the second half, according to Chinese media outlet LatePost. reported.
Huang Yuanjian, former head of international product for a ride-hailing giant Didi GlobalAccording to LatePost, he will be responsible for marketing the TikTok Shop in Brazil.
The platform, which surpassed 1 billion monthly active users last year, has set a goal of reaching 1.05 billion daily active users (DAUs) by the end of this year, the report notes. increase. Currently, his DAU on TikTok exceeds his 800 million.
TikTok did not immediately respond to a request for comment on Tuesday.
ByteDance’s flagship business is struggling to turn a profit, so it’s looking for new revenue streams. TikTok reported that its operating loss in Europe, including the UK, widened from $654 million the year before to $901 million in 2021. According to a company filed in the UK Business House earlier this month, sales were five times higher than his, reaching $990 million.
But in Asia, TikTok Shop is found some early successAfter expanding into Southeast Asia earlier this year, a summer sales campaign helped raise its profile. A week-long event held in Singapore in August saw total daily merchandise volume (GMV) triple compared to the previous week, a TikTok rep at the time said.
According to TikTok’s official TikTok Shop account, TikTok plans to continue the campaign until the end of the year. Tencent Holdings‘ WeChatWhen the TikTok Shop launches in the US this year, it can also take advantage of increased spending during the holiday season.
TikTok is facing growing political backlash in the US over data privacy and national security concerns related to its ownership by a China-based company. There are indications that we may be approaching The administration of President Joe Biden has drafted a preliminary agreement with TikTok to address those concerns, The New York Times reported last month.