TikTok Targets Spain, Ireland to Revive Europe E-Commerce Push

(Bloomberg) — TikTok is planning to launch its in-app shopping platform in Spain and Ireland as early as October, restarting a stalled campaign to expand its fastest-growing business in Europe.

ByteDance Ltd.’s social media startup told partners including merchants and creator agencies in recent weeks to get ready for a TikTok Shop debut in the two countries, according to people familiar with the matter. The rollout will be smaller than previously envisioned although preparations are underway to bring the portal to other parts of Europe next year, the people said, asking not to be identified discussing private information.

A TikTok spokesperson didn’t comment on Shop’s plan in Europe, but said the company will “continue experimenting with this new commerce opportunity to support businesses of all sizes and enable our community to discover and engage with products they love.”

TikTok Shop has recruited a team of about 40 workers in Spain, making it one of the company’s largest e-commerce outposts in Europe, according to the people. The firm is also hiring Spanish speakers in places like Madrid and London for roles ranging from logistics to compliance and strategies for Shop, according to its job site.

The plan for a smaller European debut may signal that the company is seeking to widen its reach without attracting further scrutiny from the region’s authorities. The EU’s General Court has ruled that the Chinese social media platform can’t escape a new law which reins in big tech firms and regulators are investigating whether TikTok created potentially harmful features for children.

TikTok had initially intended to bring the Shop feature to Spain, Germany, Italy, France and Ireland earlier this year, but delayed the expansion to focus on the US, Bloomberg News reported in May. 

The US remains TikTok’s most important market, with 170 million users monthly, and the company is fighting a divest-or-ban law by entrenching itself deeper into the local economy. It plans to grow its US merchandise volume tenfold to as much as $17.5 billion this year. Republican presidential candidate Donald Trump has said he no longer plans to ban TikTok if he wins the election.

TikTok Shop — which combines addictive video content with impulse-buying in visual fashion — is the app’s fastest-growing feature. The combination of eye-catching videos, popular influencers and full-scale commerce sets it apart from rivals like Instagram and YouTube, and opens a path for the firm to take on Amazon.com Inc.

Some of ByteDance’s best talent lead TikTok Shop. Bob Kang, who built Douyin’s e-commerce business from scratch, heads Shop globally, with a focus on the US. Kevin Chen, who ran ByteDance’s Toutiao news app, is now in charge of Shop in Europe. Both executives have to compete with other popular e-commerce offerings in those markets, including Shein and PDD Holdings Inc.’s Temu.

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