The popular short form video hosting app TikTok is planning to launch an e-commerce portal in early August to sell Chinese-made items in the United States, the Wall Street Journal reported on Tuesday, citing people familiar with the plan.
As per the Wall Street Journal’s report, the app seeks to replicate the success of Chinese shopping platforms Shein and Temu by managing the storage and shipping of items on behalf of Chinese manufacturers and merchants.
Temu, a Chinese-owned store situated in Boston, has experienced remarkable success this year, thanks to a hit Super Bowl ad and increased exposure on TikTok. The store attributes its ability to offer competitive pricing to the elimination of middlemen, allowing Chinese sellers to directly serve American customers and ship products from China. Meanwhile, Shein, originally founded in China, has achieved worldwide popularity, projecting sales of $100 billion by 2022.
However, their success has not been without controversy, as the both of company has faced criticism for producing poor-quality clothes and maintaining unsafe working conditions.
Furthermore, the reported move comes at a time when TikTok is under increased investigation from US regulators, primarily due to data security apprehensions. As discussions surrounding a bill granting the Biden administration the authority to block applications posing security risks continue, TikTok is making efforts to evade a potential ban in the country.
Moreover, the Biden administration in March demanded that TikTok’s Chinese owners divest their shares or face the risk of a US ban. It is noteworthy that previous attempts to ban TikTok by former President Donald Trump in 2020 were thwarted by US courts. Nevertheless, with over 150 million users in the US, TikTok remains at the center of ongoing regulatory deliberations.
TikTok, amid the ongoing tensions, is making efforts to broaden its services. The latest move is enabling users to create text-only posts, entering territory that Twitter has witnessed upheaval in, particularly after Elon Musk’s purchase last year.
Revealed on Monday, TikTok’s new feature will grant users the option to choose from a variety of backdrops for their text posts. These text postings may include hashtags and provide users with the ability to tag other users. With this expansion, TikTok seeks to capitalize on the shifting social media landscape and offer its users a new and engaging way to interact.
