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TikTok is on the run with Peloton
E-Commerce rivals threaten Amazon’s dominance
Japanese e-commerce leader introduces Bitcoin payments
Walmart embraces the future of eCommerce tech
TikTok set to boost U.S. eCommerce by 1000% in 2024
TikTok is on the run with Peloton
Peloton is set to revolutionize fitness content with its announcement of short-form videos on TikTok. The fitness giant plans to feature live classes, celebrity collaborations, and partnerships with influencers, all under the hashtag “TikTokFitness powered by Peloton.”
Oli Snoddy, Peloton’s VP of consumer marketing, emphasized the move as an effort to adapt to evolving fitness engagement.
The videos will not only include Peloton classes but also popular TikTok formats such as “get ready with me” videos, known to significantly influence consumer purchasing decisions. The collaboration extends beyond content creation, marking Peloton’s first venture into custom content for a platform outside its own.
TikTok, already gaining prominence in ecommerce, introduced TikTok Shop in the U.S. in September 2023. With approximately 150 million U.S. users, TikTok is creating a space for in-app purchases. Sofia Hernandez, TikTok’s global head of business marketing, sees this partnership as an opportunity for brands to deeply connect with audiences immersed in TikTok’s culture.
As TikTok aims to compete with Amazon in 2024, targeting $17.5 billion in U.S. ecommerce sales, Peloton’s move signifies a strategic alignment with a platform at the forefront of social commerce.
In a broader context, Peloton, having undergone a rebrand in 2023 to shift from exclusivity to inclusivity, is diversifying its offerings. The company’s collaboration with Lululemon in September further underscores its commitment to broadening its appeal beyond its traditional stationary bike-focused image.
Peloton’s foray into the vibrant TikTok ecosystem reflects an industry-wide recognition of the dynamic nature of fitness engagement and the need to reach audiences where they are – in this case, on TikTok.
E-Commerce rivals threaten Amazon’s dominance
Temu’s “shop like a billionaire” ethos is gaining popularity among U.S. consumers, marking a formidable challenge to Amazon’s dominance.
Alongside Shein and TikTok, these contenders are rapidly capturing market share, coinciding with increased scrutiny from antitrust regulators.
Pinduoduo introduced Temu to the U.S. in 2022, accumulating 60 million monthly users with budget-friendly clothing. Shein’s revenue surged to $23 billion, surpassing H&M, while TikTok eyes a substantial e-commerce expansion.
Already impacting adjacent markets, Temu claims 17% of discount retailers, nearing Dollar Tree, according to Reuters. Amazon faces growing competition reminiscent of China, where Pinduoduo and ByteDance claimed 25% of the e-commerce market in four years. This landscape could potentially aid Amazon’s defense against the Federal Trade Commission’s (FTC) monopoly accusations.
Despite legal challenges, Amazon’s market value soared 75%, gaining $660 billion in a year. However, as Temu, Shein, and TikTok encroach on Amazon’s market share, investors may be wary of potential erosion of the e-commerce giant’s dominance.
Mercari embraces Bitcoin for payments in Japan
Japanese e-commerce leader, Mercari, is gearing up to introduce Bitcoin payments on its marketplace app starting June, leveraging its cryptocurrency exchange subsidiary, Mercoin.
While transactions are displayed in yen, users will have the flexibility to pay with Bitcoin at the checkout, with Mercoin facilitating the conversion to yen for sellers.
This move follows Mercari’s launch of a cryptocurrency exchange feature in March 2023, allowing users to purchase Bitcoin within the platform using various funding sources. The integration of Bitcoin aligns with Mercari’s commitment to digital payments and caters to its vast Japanese user base.
In the Japanese e-commerce landscape, Rakuten, a competitor to Mercari, has also ventured into the crypto space with its cryptocurrency exchange and NFT platform. The relatively light regulatory environment for crypto-assets in Japan has facilitated such initiatives.
As major e-commerce players like Mercari and Rakuten integrate cryptocurrencies, a recent survey indicates that these services have the potential to attract newcomers to the crypto space, contributing to the broader adoption of digital assets in the country.
Walmart’s E-Commerce evolution and future
Walmart marked a year of substantial e-commerce advancements, notably ahead of the 2023 holiday season. Tom Ward, Executive Vice President and Chief E-Commerce Officer for Walmart U.S., outlined key upgrades, emphasizing the pivotal redesign of Walmart.com.
The platform, revamped in April, adopted a product-centric approach with personalized features, vibrant visuals, and a social media-inspired scroll.
Technological integration introduced augmented reality for enhanced product visualization, enabling customers to assess items like lipstick shades more personally. AI-powered Text to Shop transformed the shopping experience into dynamic conversations, offering unique conveniences and flexibility.
Fulfillment underwent a significant transformation, leveraging Walmart’s electric vans for InHome orders. Over 4,000 U.S. stores introduced new pickup and delivery options, including late-night and recurring deliveries based on customer preferences.
In the competitive marketplace space, Walmart hosted its inaugural Seller Summit, reinforcing its commitment to third-party sellers. The event spotlighted upgrades to Walmart Fulfillment Services for Brand Shops and Brand Shelves, positioning Walmart as a tech-powered omnichannel retailer focused on customer-centric innovations.
TikTok set to boost U.S. E-Commerce by 10-Fold in 2024
TikTok, owned by ByteDance, aims to propel its U.S. e-commerce business to new heights, targeting a remarkable tenfold surge to reach $17.5 billion in 2024, according to Bloomberg.
While TikTok has seen phenomenal e-commerce growth in China, particularly through livestreaming, its endeavors in the U.S. face challenges, with Western users currently showing a preference for digital gifts over product purchases.
In China, Douyin, the local version of TikTok, successfully integrated food delivery within the app to drive in-app purchases. However, replicating this strategy in the U.S. may prove challenging due to the presence of established alternatives like Uber Eats and Postmates.
Despite these hurdles, TikTok remains steadfast in its mission to reshape U.S. consumer spending habits. While U.S. users predominantly spend on digital gifts, TikTok’s virtual currency, Coins, remains a significant factor, indicating the platform’s potential for successful e-commerce ventures.
As TikTok plans to increase vendor fees in 2024, retailers adept at social e-commerce may find this an opportune moment to explore in-app shopping, particularly to engage with the highly coveted Gen Z audience. The evolving landscape of TikTok’s e-commerce strategy will be closely watched in the coming months.
Signing off,
The Merchant @CartHustle