MAHMOUD BENNETT: TIKTOK IS HEATING UP COMPETITION IN THE U.S.
NEW REPORTS SHOW THE SOCIAL GIANT IS SETTING UP WAREHOUSES IN AMERICA TO EXPAND ITS RETAIL BUSINESS EFFORTS.
TIKTOK HAS SEEN MASSIVE SUCCESS OVER THE PAST FEW YEARS AND WITH NOW OVER A BILLION USERS IT WANTS TO BUILD ON THAT BY ESTABLISHING ITS FIRST U.S. FULFILLMENT NETWORK.
THE CHINESE OWNED PLATFORM POSTED THESE JOB OPENINGS ON LINKEDIN, SEEKING OUT INDUSTRY VETERANS IN SEATTLE AND LOS ANGELES TO SUPPORT THE NEW WAREHOUSES.
TIKTOK HAS ALREADY FOUND SUCCESS IN VIRTUAL SHOPS IN SOUTHEAST ASIA. EXPERTS SAY THIS MOVE TO BUILD OUT ITS OWN U.S. E-COMMERCE SUPPLY CHAIN COULD GIVE THEM MORE CONTROL AND BOOST THEIR PROFITS AROUND THE WORLD.
ALL OF THIS COMES JUST DAYS AFTER THE PLATFORM’S PARENT COMPANY BYTEDANCE REPORTED A LOSS OF 7 BILLION DOLLARS FOR 2021, AS THEY SPENT LOTS OF MONEY PUSHING FOR MORE GROWTH.
AND IT’S NOT WITHOUT WINS. TIKTOK’S UNPRECEDENTED EXPANSION AND POPULARITY HAS TAKEN A TOLL ON WELL-ESTABLISHED SOCIAL GIANTS LIKE FACEBOOK AND INSTAGRAM WHICH HAVE HAD TO ROLL OUT COPYCAT ALGORITHMS TO KEEP UP.
ANALYSTS SAY TIKTOK GOING BIG ON E-COMMERCE IN THE U.S. WILL BE AN EXPENSIVE ENDEAVOR, BUT IT WILL LET THEM GO TOE-TO-TOW WITH ESTABLISHED COMPETITORS IN THE LIKES OF AMAZON AND WALMART.