Will Tiktok E-commerce shops become the next SHEIN?

This week Tiktok has announced they have scrapped their plans to expand their live stream in Europe because local brands in Europe are reluctant to cut their price drastically for Tiktok livestream. However, offering low price but big sales was the reason why livestream e-commerce works in Asian market.

Although European brands are leaving the livestream, that doesn't mean it's the end of Tiktok livestream.

A growing number of Chinese companies are selling products from China through Tiktok live stream. They are affordable and of medium quality, but well-trained live-stream presenters can convince western customers to buy them.

Affordable and medium quality made-in-China products with great sales and marketing channels, and the western brands are not seeing them as competition? Does that story sound way too familiar?

When SHEIN was first launch, even though their pricing was very affordable compared with fast fashion brands, not too many brands were taking them seriously because of their quality and the country of origin——“Made in China".

Now SHEIN has obtained market share higher than H&M and Zara and it is continue to grow faster than all the other brands. Just between a January 2020 to mid-June, it has grown by nearly 160% compared to only 15% by the whole US fast fashion market.

Right now, Tiktok livestream is full of similar product quality and pricing, but a much larger product range that covers more than fashion.

This should be noticed by western brands as a threat and competition as we have seen SHEIN's story.

Livestream e-commerce is just a form of social selling that has transformed from well-known QVC and HSN. It's just a matter of time that western market will adapt to the idea. \

Just remember success is left for first movers and early comers.

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