Thursday, December 19, 2024

TikTok launches new online shop in Ireland, taking on giant retailers

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The social media giant, which recently surpassed Shein and Temu with its TikTok Shop in the US, will let influencers sell directly to users on the platform

The company says that Irish influencers and content creators, as well as other businesses, will be able to market and sell products and services to TikTok users directly without having to go to other web services.

The service will focus on “shoppable videos” and “live” shopping both directly from influencers and within the platform’s ‘For You’ feeds.

Local launch partners include Chapters Bookstore, the beauty brand Cocoa Brown and the cosmetics brand Smooth Company.

TikTok is launching the shop to its 2.2m monthly users in partnership with Guaranteed Irish. The company says that, at launch, the products and services available will be limited to Irish-based businesses, creators and influencers.

TikTok Shop is now a major retail outlet in the US, outselling Shein and Temu in this year’s Black Friday sales season, according to the data firm Facteus.

TikTok said that its TikTok Shop sales in the US had reached $100 million on Black Friday.

According to US data, TikTok’s US Shop, which launched a year ago has likely gained market share in e-commerce at a critical moment.

Capitalising on the popularity of the TikTok social media app, TikTok Shop merchants typically use ads and sponsored “influencers” to market their products to TikTok’s millions of users.

Merchants on TikTok Shop fulfill shoppers’ orders directly, sometimes using third-parties or TikTok’s e-commerce fulfillment services.

For merchants and influencers, TikTok Shop offers live-video streams from which shoppers can purchase merchandise directly.

“We hope that this platform will be a new way for them to share their stories, highlight their craftsmanship, and connect with customers in real time,” said Brid O’Connell, CEO of Guaranteed Irish.

“Our members have access to account managers and content creators, helping convert sales and assist them on this journey.”

Elaine Fox, Head of Ireland at TikTok said: “we’re thrilled to be opening up TikTok Shop in Ireland so that our Irish users can discover and buy from homegrown Irish brands. For local businesses in Ireland, TikTok Shop is like having a bustling market square in the palm of their hand. Whether you are a one person business, a national brand or a creator, you can grow your business and income and that’s great news for the Irish economy at large.”

A US federal appeals court on Friday upheld a law requiring Chinese-based ByteDance to divest TikTok in the U.S. by early next year or face a ban. A ban of the popular short video app, if it happens, could extend to TikTok Shop, too.

The TikTok Shop lets sellers market and sell products live, while buyers can ask questions and be answered in real time while interacting with the community on the livestream.

Shoppable videos in the ‘For You’ feed, the company says, offer a “native” solution for sellers to add products into videos “in an organic and creative way”. Shoppers click on the link and are directed to product detail pages, which highlight the product details and prompt viewers to check out directly.

‘Creators’ can also connect with sellers through new commission-based ‘affiliate’ product marketing schemes, too, by sharing products in short videos and livestreams.

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