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    Home » TikTok targets Spain, Ireland to revive European e-commerce push
    TikTok-7.23
    TikTok-7.23
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    TikTok targets Spain, Ireland to revive European e-commerce push

    By Heidi LuoJuly 23, 2024No Comments3 Mins Read
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    • TikTok has announced plans to launch its in-app shopping platform, TikTok Shop, in Spain and Ireland as early as October.
    • The company will roll out the platform to the rest of Europe in 2025, amid ongoing scrutiny from European regulators.

    OUR TAKE
    TikTok is set to restart its e-commerce strategy in Europe with the launch of its in-app shopping feature TikTok Shop, in Spain and Ireland in October. The decision reflects a scaled-down approach, but preparations are underway to expand the platform to other European regions by 2025. From a personal perspective, TikTok’s push into the European e-commerce space is a significant development for the technology and retail industries. By integrating its popular video content with an e-commerce function, TikTok Shop represents a new hybrid model of social commerce that could redefine consumer shopping habits. Plus, this expansion could be a sign of TikTok’s strategy of fine-tuning its offering in smaller markets before taking on the entire continent. This could potentially avoid the pitfalls of a rushed rollout.
    —Heidi Luo, BTW reporter

    What happened

    TikTok has resumed its European e-commerce expansion by announcing the launch of TikTok Shop in Spain and Ireland, scheduled for as early as October. The scaled-back launch contrasts with earlier, more ambitious plans but sets the stage for a wider expansion across Europe planned for 2025.

    The social media giant has been preparing its partners, including merchants and creator agencies for this debut, according to Bloomberg. And to support its initiative, TikTok has built a team of around 40 people in Spain, which now serves as one of its largest e-commerce hubs in Europe.

    In addition, TikTok is actively recruiting Spanish-speaking professionals in cities such as Madrid and London for various roles critical to the success of the TikTok business, ranging from logistics to compliance and strategy, according to its job site.

    Also read: Trump won’t ban TikTok: ‘There needs to be competition’

    Also read: US lawsuit against TikTok focuses on children’s privacy

    Why it’s important

    Launched in 2016 by ByteDance, TikTok quickly became one of the world’s most downloaded apps and has expanded beyond entertainment to include e-commerce and digital advertising. TikTok is cautiously approaching its European market debut with a smaller initial rollout, partly to avoid additional regulatory scrutiny from the EU, which is tightening regulations on major tech companies and investigating TikTok for features that could harm children.

    It’s unique blend of video, influencer marketing and integrated shopping sets it apart from competitors such as Instagram and YouTube, paving the way for it to compete with giants such as Amazon. But it faces stiff competition from other well-known e-commerce platforms such as Shein and PDD Holdings’ Temu.

    TikTok originally planned to launch the shop feature in several European countries earlier this year, but shifted focus to strengthen its presence in the US, where it remains a key market with 170 million monthly userss. In addition, Republican presidential candidate Donald Trump has said he would not pursue a ban on TikTok if elected.

    Leading the charge for TikTok Shop are some of ByteDance’s top talents: Bob Kang, who built Douyin’s e-commerce business, oversees global operations with a focus on the US, while Kevin Chen, former head of ByteDance’s news app Toutiao, heads up the European sector.

    e-commerce platforms European market tiktok shop
    Heidi Luo

    Heidi Luo is an intern reporter at Blue Tech Wave specialising in IT and tech trends. She graduated from Cardiff University. Send tips to h.luo@btw.media

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