Week #16: TikTok Shop USA Aims for Over $12 Billion GMV in H2 2024 | TikTok U.S. Single Live Stream Breaks $1 Million Barrier
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
TikTok Shop USA Aims for Over $12 Billion GMV in H2 2024
SHEIN Expands Resale Platform to Europe and UK
Brazil's Congress Moves to Tax Low-Cost Online Orders, Impacting Shein
Alibaba.com Announced as Official B2B E-Commerce Partner of UEFA EURO 2024
SHEIN Officially Rolls out its Semi-Managed Model
TikTok U.S. Single Live Stream Breaks $1 Million Barrier
Ziel Home's Q1 Revenue Surges 45% to $254.15 Million
TikTok Shop USA Aims for Over $12 Billion GMV in H2 2024
TikTok has set a bold goal for its U.S. e-commerce segment, targeting $12 billion to $13 billion in Gross Merchandise Value (GMV) for the second half of 2024. The company expects its Global Selling business to account for approximately 20% of this ambitious target. ByteDance, TikTok's parent company, has yet to comment on these projections.
In early 2024, TikTok announced plans to increase its U.S. GMV tenfold. The platform, which now has 170 million monthly active users in the U.S., launched TikTok Shop in the region in September 2023. By the end of last year, TikTok Shop was generating a daily GMV of $14 million.
Despite these promising figures, the new target is seen as highly ambitious, particularly given TikTok's performance in the first half of this year. Several sources have voiced concerns about the feasibility of reaching this goal, noting that TikTok's U.S. e-commerce operations have underperformed in recent months.
Data from Tabcut shows that from January to May 2024, TikTok's total GMV in the U.S. stood at just $2.1 billion. If Bloomberg's report of a full-year U.S. target of $17.5 billion is accurate, TikTok has only achieved 11% of its target in the first five months.
The road ahead for TikTok's U.S. e-commerce ambitions appears challenging, with significant ground to cover in the next months of 2024.
SHEIN Expands Resale Platform to Europe and UK
SHEIN has announced the expansion of its SHEIN Exchange resale platform to Europe and the UK, starting with France. The move follows the platform's initial launch in the U.S. in October 2022.
Since its U.S. debut, SHEIN Exchange has steadily gained traction. In 2023 alone, the platform attracted over 4.2 million new users and featured more than 115,000 pre-owned items listed for sale by over 95,000 unique sellers.
The European rollout comes amid growing consumer interest in sustainability. A series of studies conducted in September 2023 revealed that nearly half of SHEIN customers in the UK, France, Germany, and Brazil are driven to purchase second-hand clothing online due to a shared commitment to sustainability and circular fashion.
SHEIN's expansion into the European resale market coincides with ZARA's recent launch of its second-hand platform, ZARA Pre-Owned, in France. This development signals increasing competition between SHEIN and ZARA in the burgeoning second-hand clothing market.
Brazil's Congress Moves to Tax Low-Cost Online Orders, Impacting Shein
Brazil's House of Representatives has passed a bill that imposes a 20% tax on cross-border purchases under $50 USD. This new legislation also includes a 17% goods and services tax (ICMS), which will significantly increase costs for consumers.
Global online retailers, such as Alibaba's AliExpress and Shein, have a considerable footprint in Brazil. Analysts at Bradesco, Brazil's third-largest bank, predict that this tax change will erode Shein's competitive edge in the Brazilian market.
They view the narrowing price gap as a beneficial shift for local clothing retailers. This development may encourage consumers to balance convenience against cost, potentially favoring local businesses. Local retailers can offer immediate in-store purchases or expedited two-day e-commerce delivery in major cities, enhancing their appeal compared to international competitors.
Alibaba.com Announced as Official B2B E-Commerce Partner of UEFA EURO 2024
Alibaba.com, a premier global B2B e-commerce platform and part of Alibaba International Digital Commerce Group, has announced its strategic partnership with UEFA EURO 2024™, becoming its official B2B E-commerce Partner. This partnership complements the existing agreement between AliExpress, Alibaba's B2C platform, and UEFA EURO 2024™. This collaboration is poised to create numerous opportunities for small and medium-sized enterprises (SMEs) on Alibaba.com to capitalize on the heightened demand around the tournament.
In anticipation of an exciting sports-filled summer, Alibaba.com is launching initiatives to support and empower SMEs. These initiatives include offering special deals and giveaways, as well as providing advanced sourcing tools to help SMEs boost their sales leading up to and during the games.
SHEIN Officially Rolls out its Semi-Managed Model
In early May, news of SHEIN's semi-managed model surfaced, and by June 3, SHEIN officially confirmed its launch. Industry experts and cross-border sellers quickly recognized its benefits:
Sellers can open shops on SHEIN with more control over product offerings.
Products must be stocked locally overseas for local fulfillment.
Sellers set their own prices, with SHEIN assisting in operations, pricing, and providing exclusive traffic support.
Currently, this model is available on its U.S. site. SHEIN imposes no performance thresholds or additional fees for joining, allowing sellers to quickly establish a presence with zero monthly rent and commission.
This model offers manufacturing enterprises, trading companies, and brand sellers the opportunity to explore local markets, enhance brand influence, and provide personalized, efficient shopping experiences to global consumers.
Reports indicate that over 20,000 sellers have already expressed interest in SHEIN's semi-managed model and are eager to join. The model will be available to sellers in Europe around late June.
TikTok U.S. Single Live Stream Breaks $1 Million Barrier
On June 7, TikTok U.S. influencer Mandy (ID:simplymandys) achieved $737,000 in sales during a single live stream, breaking Jeffree Star's record of $665,000. However, less than 24 hours later, iamstormisteele shattered this record with $1,048,100 in sales, marking TikTok U.S.'s first million-dollar live stream. This milestone is a significant step forward for U.S. e-commerce.
FastMoss data shows that CANVAS BEAUTY CEO Stormi Steele's (ID:iamstormisteele) live stream generated $1,048,100 in sales (TikTok's official figure is over $1,020,800). The three main products also saw a notable increase in sales. The top-selling item, "Body Glaze Sample Pack - Pick your Collection," launched on TikTok U.S. in May 2024, had an estimated 12,100 units sold during the live stream. So far, it has sold 24,700 units, generating about $593,500 in total sales.
Ziel Home's Q1 Revenue Surges 45% to $254.15 Million
Ziel Home Furnishing Technology reported a robust financial performance for the first quarter ending March 31, 2024. The company posted a revenue of $254.15 million, marking a significant 45.43% year-over-year increase. Net profit for the quarter reached $13.94 million, up 15.06% from the same period last year.
According to Marketplace Pulse's "Top Amazon Marketplace Sellers" statistics, Ziel Home's brand leads the home furniture category on Amazon across key European markets, including Germany, France, the UK, and Italy.
Founded in 2010, Ziel Home operates three major brands: SONGMICS, known for home furnishings; VASAGLE, specializing in stylish furniture; and Feandrea, catering to pet supplies. The company's products have penetrated over 70 countries and regions, including Europe, North America, and Asia, serving more than 20 million households globally.