TikTok Shop wants to attract small companies using accelerators

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Brief description of the dive:

Facing a looming ban on its platform, TikTok Shop has launched a Supporting Our Artisans and Retailers program that aims to provide small businesses with resources and support to scale their businesses on its platform, the social media company announced on Tuesday.
As part of that effort, the social media company has launched the women-owned TikTok Shop Accelerator, where 15 U.S. businesses will participate in a six-week program and gain skills such as analyzing social media metrics and connecting with influencers, the company said. The company has partnered with the Conscious Trading Accelerator and the Association of Women’s Business Centers to provide those resources.
The company has also partnered with StartOut to award 30 LGBTQIA+-owned businesses in the United States with grants through the StartOut Founders Program, through which they will receive mentoring, networking opportunities and other resources to support the growth of their businesses, according to a press release.

Diving Insight:

The launch of TikTok’s small business accelerator initiatives follows the U.S. debut of TikTok Shop last September. The app’s e-commerce space allows sellers to connect with the platform’s millions of users and create custom product collections on their business profiles. According to the company, thanks to the women-led TikTok Shop accelerator, participants will learn, among other things, the basics of navigating the TikTok Shop.

“It’s important that entrepreneurs of all backgrounds who use TikTok Shop feel supported so they can continue to thrive in their creative and business endeavors,” Nico Le Bourgeois, TikTok Shop’s U.S. chief operating officer, said in a statement about the small business initiatives. “We hope that by the end of the program, participating sellers and creators will feel even more empowered to take advantage of the endless opportunities that lie ahead of them in TikTok Shop.”

Because TikTok provides training for small businesses on how to use TikTok Shop, research suggests that the platform is not as popular with American consumers as it is with Chinese users. A YouGov report published in May found that 86% of TikTok users know about TikTok Shop, but less than a third (31%) have purchased something through the platform. Meanwhile, more than a quarter (28%) have never visited a TikTok store.

While U.S. consumers haven’t fully embraced the shopping platform, TikTok Shop has attracted many shoppers who also buy products from fast fashion retailers Shein and Temu. An Earnest Analytics report published in spring found that 28% of Shein customers also made purchases through TikTok Shop in the last 12 months. What’s more, during the same period, a quarter of Temu’s customers also bought products on TikTok.

Even as TikTok tries to attract American consumers and small businesses to the platform, the social network faces a ban. In April, Congress passed a bill that would force TikTok to be sold to a new owner, and President Joe Biden signed it into law. In a statement issued after the bill was passed, TikTok declared the ban unconstitutional and announced it would challenge the law in court.