Walmart said it is moving forward with its goal of investing in TickTalk as Oracle leads in partnership with the Chinese video-sharing app.
on Sunday, Oracle To beat Microsoft In the battle of the American hand of Tiktok structured as an agreement rather than an outward sale to try to navigate the geopolitical tensions between Beijing and Washington.
ByteDance, The Chinese owner of TikTok, was negotiating to divest the US business of a consortium’s highly popular short-video app led by Oracle or Microsoft after US President Donald Trump ordered the sale last month and said That otherwise they may be closed.
While Microsoft said it was informed by ByteDance that the Chinese firm was not selling it to Ticktok’s US operations, Walmart said it would talk further with ByteDance and “other interested parties.”
When asked on Monday whether other parties include Oracle, a Walmart spokesman declined to comment.
Analysts say replacing TickTalk with a platform where some 50 million American daily users share dance-songs and short-form videos of people in a shopping-powerhouse would be a challenge for the Bentonville, Arkansas-based company.
In the United States, TikTok advertisers currently advertise commercials such as commercials. Headphones Or fast food between user uploaded videos. They can also pay for promotional “hashtag challenges”, where users post videos about brands’ products.
In June, TikTok joined advertisers with a new program called “TikTok For Business”, which allows users to purchase the ads they see when they first open the app. “Don’t advertise, create ticktakes,” the company told advertisers, which now include Nike, Ebay And Colgate-Palmolive among others.
While TikTok is already on the way to building a strong advertising business, a broader plan to sell goods on the app is still to be clarified.
Opponents are far ahead. Facebook In recent years, prioritized shopping and payment products in its suite of apps, including rapid development Instagram And WhatsApp Its names suggest an ambition to emulate the “Blue” app as well as all Chinese super apps such as Do-It. WeChat.
If Walmart sought inspiration to narrow the gap between Teatalk and other large digital platforms and hold on to Amazon, it need look no further than the Chinese counterpart of TickTalk.
Douyin, An app owned by ByteDance that resembles TikTok but only available in China, began selling merchandise in 2017 and now operates a growing e-commerce operation where more than 400 million daily users shop.
Users can watch short videos live stream And shop directly through the store on the app or click on links from videos to other e-commerce platforms. Creators are also encouraged to build shops within Doyen.
While Doyin has relied on and brought in new businesses such as China’s large e-commerce platforms Alibaba, TikTok’s e-commerce ambitions can be underlined by Walmart.
Retailer has accelerated e-commerce plans since inception Coronavirus Ubiquitous epidemic. Walmart has found new avenues for shoppers, who travel less in their stores. It has invested in curbside pickup and next-day and two-day delivery.
But it can do much more, say analysts. Scott Smigler, president of e-commerce marketing agency Exclusive Concepts, said Walmart could expand into so-called social commerce by hosting Tiktok Impactors’ online storefront and purchase directly from video and livestreams.
A partnership with Tickcock, Smigler said, “will give Walmart a compelling edge over both Amazon and Google, struggling to help consumers discover new products they didn’t know they needed. It’s social Is the true power of commerce. “
All this can go a long way towards attracting a wider and younger audience. According to data provider Kantar, the average age of Walmart shoppers is 47.
“TikTok is valuable because it is used every day by children … so as long as they (Walmart) gear their ads to the audience at TikTok, it will be a success and they will be a real success in advertising and e-commerce. Can be leaders, ”said Randy Hare, portfolio manager at Huntington Private Bank. “If they start advertising tools and things like that, I don’t think they’ll get much traction.”
© Thomson Reuters 2020
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