In the past couple weeks, TikTok users from the U.K. have come across “Trendy Beat”, a seemingly new shopping feature on the app and the Financial Times confirmed the feature as part of TikTok parent company ByteDance’s so-called ‘Project S’, which aims to expand their eCommerce offering.
ByteDance Ltd. is a Chinese Internet technology company headquartered in Beijing and incorporated in the Cayman Islands.
Whilst their feature TikTok Shop – which has seen significant growth in Asia but has not quite gained the same traction in Western markets – makes it so users can buy products directly from brands, everything on ‘Trendy Beat’ is made, sold and shipped from ByteDance itself, much like e-tail firms Amazon and Shein.
So, what does this mean for the future of e-tail? (retail conducted via the Internet)
Chris Raven, CEO at business growth agency Heur has provided Digital Journal with his opinion on what the ‘Trendy Beat’ initiative entails and what this means for the future of social media and e-tail.
Raven begins my explaining what this latest development in ecommerce is: “From what can be gleaned from UK users, ‘Trendy Beat’ appears to sell products made and sold by ByteDance, rather than simply linking to items from other eCommerce brands. When exploring this feature, users will see products that have gained popularity or have gone viral on the app, from pet-hair removers to ear wax extractors.”
In terms of the basis of the development, Raven continues: “This is a move away from their existing eCommerce platform, TikTok shop, as it positions themselves as the platform and the seller AKA a one-stop-shop for all your in-app purchases.”
In terms of market penetration, Raven finds: “It also seems that ByteDance is leveraging their user knowledge and TikTok algorithm to find out which products are going viral on the app, an edge that Amazon and SHEIN can’t gauge without actual purchases and searches. This means that they can anticipate what users are forming an interest in and then meet the demand accordingly.”
With the economic basis of the model, Raven establishes: “ByteDance is essentially trying to take charge and have full ownership of their eCommerce sector – by manufacturing the products themselves, like Amazon and SHEIN have done, and gauging interest before selling, they can corner the market without relying on other brands and businesses. Essentially, they are narrowing the choice for consumers on TikTok.”
But what of the quality? Here Raven is more circumspect: “However, from what we can see, the products they are selling are relatively cheap and easy to make. Like Amazon and SHEIN, this is essentially promoting mass-produced products and impulse buying, neither of which align with the current consciousness around sustainability. TikTok Shop has never seen huge success in Western markets, possibly because of consumer concerns and general wariness around buying from social media.”
Yet the model could be successful, as Raven concludes: “If ByteDance sees success with ‘Trendy Beat’ it is probable that more social media platforms will follow suit. It may also mean that competitors such as Amazon will withdraw spending on ads and listings on TikTok which could be detrimental to ByteDance’s eCommerce plan.”
