tiktok

TikTok plans to hit $20 billion in merchandise sales growth amid Southeast Asia rapid growth

Unusual Whales

Jun 8, 2023 • 1 min read

Per Bloomberg

TikTok has been struggling in the US as it faces many legal battles, but despite that, the company has seen rapid growth in Southeast Asia. Because of this, the platform is aiming to reach up to $20 billion in merchandise sales this 2023.

This was according to people that were familiar with the matter and if true, would be a huge leap from its previous gross merchandise value in 2022. Last year, the company only achieved $4.4 billion in gross merchandise value, but now, it wants to reach $20 billion in merchandise sales.

Should TikTok reach $20 billion in merchandise sales, this would be almost 5x its $4.4 billion gross merchandise value. The gross merchandise value reportedly means the "total worth of goods sold through its TikTok Shop offering" per people familiar with the matter.

So far, TikTok reportedly has had 150 million users and has proposed different solutions to address national security concerns. One solution provided would be to coordinate the data of US users with partners like Oracle.

Oracle Corp. could review TikTok's technology, but despite that, certain US states have started to impose strict rules against the app. For example, Montana would start prohibiting the download of the app starting in 2024.

In March, it was reported that TikTok announced that they would limit screen time for users under 18 to just 60 minutes daily. It was noted that users needed to be at least 13 to use the app, and individuals under 18 would get a weekly notification regarding their screen time recap.

In February, TikTok said it was teaming up with Mercedes-Benz to bring the app inside the newly announced interior and screens of the E-Class directly. The CEO said that it was important to remember that S-Class owners in China were around 40 years old or below.

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