In a bid to compete with rivals like Shein and Amazon, TikTok is broadening its online retail offerings. ByteDance, the Chinese parent company of the video-sharing app, has started selling products directly through its platform.
Over the past few weeks, TikTok users in the U.K. have come across a new shopping feature called “Trendy Beat” within the app, the Financial Times reported Wednesday (June 21). The section showcases popular items featured in videos.
Citing sources familiar with the matter, the news outlet reported that TikTok’s marketplace, TikTok Shop, has achieved success in Southeast Asian markets such as Indonesia and Vietnam but has had difficulty gaining traction in the U.K., where it launched over two years ago.
Unlike TikTok Shop, where other vendors can sell items and the platform earns a small commission from those transactions, individuals familiar with the operation suggest that ByteDance is anticipated to retain all the proceeds from sales made through the Trendy Beat feature on TikTok.
Based on filings and individuals familiar with the operations, these advertised items originate from China and are sold by a Singapore-based company owned by ByteDance — a move that is strikingly similar to Amazon’s strategy of creating and promoting its own popular products.
Dubbed internally as “Project S,” the TikTok initiative aims to directly compete with the likes of Shein, a fast-fashion brand, and Temu, a social media-driven app affiliated with Pinduoduo that specializes in affordable product offerings.
Project S aims to capitalize on TikTok’s understanding of viral trends within the app to empower ByteDance in acquiring or producing those popular items. ByteDance then promotes Trendy Beat products, granting them preferential treatment over other sellers on TikTok.
The brand utilizes a network of suppliers to manufacture items for its Trendy Beat offering, per the report. The Trendy Beat page is reportedly connected to a company named Seitu, registered at a Singapore address. According to individuals familiar with Project S, Seitu is owned by ByteDance, and TikTok has confirmed its status as a subsidiary. Public records also indicate that Seitu is also linked to If Yooou, a retail business owned by ByteDance.
Bob Kang, the eCommerce chief at ByteDance, is reportedly spearheading Project S.
ByteDance is pursuing the expansion of TikTok’s eCommerce offerings, aiming to replicate the success achieved by its Chinese sister app, Douyin, which has achieved sales exceeding 10 billion products annually. In 2022, ByteDance recorded sales amounting to $85 billion, with the majority of the revenue originating from its business operations in China.
Read also: TikTok Looks to Southeast Asia to Drive eCommerce Growth
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