Culture clash: It’s not surprising to see TikTok attempt to cut its losses as higher interest rates and market uncertainty force businesses to focus on their core revenue streams. However, its decision to cut back on social commerce despite being a major driver of trends and purchase intent signals that the market for livestream ecommerce is not yet worth the effort.
- It also shows that TikTok and other platforms can’t simply transpose what’s worked in China onto other markets.
- That goes for livestream shopping as well as work culture: TikTok’s UK arm is struggling to retain employees amid claims of a punishing work environment, further inhibiting its social commerce rollout.
The big takeaway: It will be some time before livestream shopping adoption in Western markets reaches the level of penetration seen in Asian countries. At the same time, by putting its livestream shopping plans on ice, TikTok is leaving the door open for other platforms to take the lead.
Go further: For more on TikTok commerce, read our report here.