According to a report Bloomberg News, TikTok is getting ready to roll out heavy holiday discounts in an attempt to attract consumers to its newly launched marketplace. The social media app hopes to compete with retail giants Amazon and Walmart offering subsidies of up to 50% for sellers participating in its Black Friday program, which will run from October 27th to November 30th.
TikTok, which boasts 150 million American users, expanded its shopping platform nationwide in the US last week after testing it last year. The company aims to bring shoppable videos and live streams directly to users’ For You feeds, providing brands, merchants, and creators with the tools to sell directly through shoppable content on the app.
The shopping feature on TikTok includes a product showcase where users can browse product tiles, read reviews, and make purchases directly from a brand’s profile. Additionally, there is an affiliate program that allows creators and merchants to connect for commission-based product marketing opportunities. This program allows creators to monetize their creativity showcasing products in short videos and livestreams.
Data from Deloitte suggests that shoppers are projected to spend as much as $284 billion during this year’s holiday season. However, recent earnings reports from retailers indicate some consumer hesitancy heading into the holiday season, as major merchants struggle to boost sales and strengthen their customer bases.
One report suggests that while consumer spending is on the rise, some consumers may have a more subdued attitude towards spending. Consumer sentiment towards pulling back on spending is also reflected in the predicted inflation rate, with consumers expecting inflation to continue until approximately March 2025.
Despite increased spending, household debt in the US is on the rise. Federal Reserve data shows that household debt reached $17 trillion in the second quarter of this year, with credit card debt surpassing $1 trillion. Furthermore, rising delinquency and charge-off rates pose challenges for banks.
In conclusion, TikTok’s holiday discounts and its expanded shopping platform aim to compete with industry giants Amazon and Walmart. It remains to be seen how successful the app will be in attracting consumers and competing for market share during the holiday season.
Sources:
– Bloomberg News
– Deloitte
– Federal Reserve
