Luxury conglomerate LVMH is in discussions with TikTok and its parent company ByteDance Ltd. on a plan for limiting counterfeit products sold on the popular video-sharing app.
Louis Vuitton, Christian Dior, Givenchy, Tiffany & Co., and TAG Heuer are just a few of the 74 major brands that are part of LVMH. In order to combat counterfeit items on its online Tmall marketplace, the luxury firm has a deal in place with Alibaba firm Holding Ltd., according to Haba.
A significant step towards improving TikTok Shop’s standing with brands and customers in important new markets may have been taken with this transaction. As per those acquainted with the situation, the corporation commenced its US retail operations last year and has set lofty goals, hoping to grow its American e-commerce division tenfold to a potential value of US $ 17.5 billion by 2024. TikTok is already flagging suspicious-looking Benefit-branded products to the company.
In the US, TikTok Shop functions as both a dedicated tab that resembles a standard e-commerce website and an integrated component of the social media app’s video feed, where some users and companies are able to tag and sell things through their videos. According to TikTok, 150,000 retailers and creators uploaded videos during the month of Black Friday and Cyber Monday, during the first holiday shopping season for the initiative, bringing in over 5 million new users.
While several major firms, such as Benefit and fashion shop Revolve, have jumped at the chance to sell on the app in the US, many others have taken their time.
