Outside of China, TikTok is testing the sale of application products Business and Economic News

Efforts to duplicate foreign markets could be a threat to the success of China’s successful cousin Douyin for Facebook.

ByteDance Ltd.’s TikTok is working with brands such as Hype Streetwear brand to test app sales in Europe, which will increase competition with Facebook Inc. and blur the line between social media and online shopping.

It is hoped to replicate popular video applications abroad for the success of Chinese cousin Douyin, who earned $ 26 billion in e-commerce transactions in his first year. TikTok has started working with markets in the UK’s internal markets, in ways that the app can sell products directly to millions of users, according to people who know the subject.

Although TikTok has conducted promotional shopping campaigns in the past, current trials are a pioneer in launching a global e-commerce service. The prototype so far can only be seen by the participants and it is unknown when the company will start the formal launch. A hype representative confirmed the test without confirmation. The showcase of the label shows a product that includes product images and prices under its TikTok account, according to a screen provided to Bloomberg News.

ByteDance is aggressively moving to the $ 1.7 trillion e-commerce field in China in hopes of adding another growth story to its stable ahead of the long-awaited initial public offering. By 2022, it aims to manage more than $ 185 billion in e-commerce from the reach of the regions of TikTok and Douyin social networks. Alibaba Group Holding Ltd. or Tencent Holdings Ltd., unlike its Chinese rivals, ByteDance’s applications are widely popular around the world, and founding member Zhang Yiming wants to use that as a starting point in the online trading game.

“Chinese internet companies will continue to stimulate the behaviors they need for the next phase of ecosystem behavior,” said Rui Ma, a partner at Synaptic Ventures. “TikTok has a lot to learn from China and Douyin, but the dynamics and infrastructure in the international market are different, so they need to make sure they fit.”

The internet giant continues to participate in the Chinese social commerce scene, where agents offer products to fans like the Gen-Z version of the home network. It relies on interest-based recommendations driven by artificial intelligence to help it capture its e-commerce businesses.

“TikTok has been testing and learning with e-commerce offerings and partnerships, and we are constantly exploring new ways to add value,” the company said in an email. “We will provide updates as we explore these important avenues for our community of users, creators and brands.”

The move is selling titans on social media around the world to get its share of online retail, a segment that will generate $ 5 trillion in sales this year, according to eMarketer forecasts. Facebook introduced new tools last May to improve the shopping experience on its platform, as well as Instagram sharing apps, and Pinterest has also entered e-commerce by directing buyers to retailers ’websites.

TikTok, meanwhile, had already started testing water for online shopping with Walmart Inc. and Shopify Inc. through promotional links with the Canadian e-commerce company. Companies typically label their products on TikTok’s social content, with links that buyers direct to them. sites, but technically users follow the TikTok app. Facebook and Instagram allow marketers to set up app storefronts or direct users to third-party services.

Now TikTok aims to block users within the ecosystem. Brands like Hype will make dedicated dedications to the video platform so that buyers can take orders and interact directly. Although the Chinese company will not handle sales or merchandise itself, it hopes to sell more ads to retailers, increase traffic and reduce business.

In December, Zhang told all employees that e-commerce, combined with live streaming and short videos, offers an even greater opportunity outside of China, according to participants who asked not to be identified. The company is quietly building a team of engineers in Singapore to create new e-commerce operations for TikTok.

It’s unclear how TikTok wants to continue, but his Chinese twin offers clues. During a prestigious outing for Douyin’s one-year business last month, executives explained that the company intends to repeat its success with AI-recommended videos in online shopping. By scrolling through the endless stream of content related to physical goods, buyers want to engage buyers in the same way that wedding videos fascinate the American and European teenage generation.