TikTok maintains ambitious e-commerce objectives for the US market, despite a sluggish beginning in 2024
In the bustling world of social media, TikTok continues to make waves, setting ambitious targets for its US bank market. The platform aims to achieve a gross merchandise value (GMV) of USD 12-13 billion in the stock market today second half of 2024, according to recent reports.
However, the road to this goal has not been smooth. In the first half of 2024, TikTok's US e-commerce performance fell below expectations, with total closed-loop GMV less than USD 2 billion. This shortfall may be a concern, as it leaves only 11% of the full-year target met in five months, assuming the accuracy of Bloomberg's report.
TikTok and its parent company ByteDance have not responded to inquiries about this data, but the platform remains optimistic about its prospects in the US bank market. This optimism was evident at a small closed-door meeting held in Shenzhen on May 7, where TikTok officials stated their confidence in overcoming political pressure.
At this meeting, TikTok invited major domestic sellers to participate and announced measures such as enhanced merchant support programs, improved data analytics tools, and increased marketing subsidies to support its merchants. The meeting also marked the lowering of the threshold for influencers in the US to apply for product promotion from 5,000 followers to 1,000 followers, opening up opportunities for a larger pool of creators.
TikTok Shop, the platform's e-commerce arm, launched in the US in September 2023. Since then, it has grown to boast a user base of 170 million monthly active users. The platform's success in the US bank market is not just limited to TikTok. Other Chinese applications like Lemon8 and CapCut may also feel the impact of any potential TikTok ban bill.
In response to these challenges, TikTok has contingency plans in place. Even in the worst-case scenario, the platform is ready to adapt and continue its growth trajectory.
This article was originally published by 36Kr and features translated and adapted content on our website, Connection. It was written by Zhang Rao for 36Kr. Marvin Goh contributed to the adaptation for our readers.
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