TikTok Shop eyes 100% growth in 2025

24 Feb 2025

TikTok Shop, the short video platform’s e-commerce division has set an ambitious growth target of nearly 100% for 2025, with the US market expected to lead the expansion at nearly 200%, according to figures cited by Chinese media.

Looking ahead, the company is proactively mitigating potential risks amid a potential ban by the U.S., through accelerating its entry into additional markets. This year alone, TikTok plans to launch e-commerce operations in Italy, Germany, and France, while also expanding into Brazil and Japan.

If forced out of the U.S., TikTok will allegedly shift its focus on Southeast Asia, Europe, Brazil, and Japan.

The Jing Take #
Despite its uncertain future in the U.S., it’s business as usual for TikTok, according to Tech in Asia.

Key growth areas include home goods and health products. Short-form videos account for 40% of TikTok’s U.S. Gross Merchandise Value (GMV), with TikTok Shop and livestreaming contributing 30% and 10%, respectively.

The U.S. market, the largest for advertising and retail, is crucial for TikTok’s e-commerce performance; however, insiders say its livestreaming arm is underdeveloped, accounting for less than 20% of total sales compared to Douyin’s 70%.

TikTok plans to adjust its algorithm and partner with Chinese firms to improve its livestreaming operations.

Meanwhile, e-commerce competitor Temu generated sales exceeding $52 billion last year. Data published by Bloomberg shows that TikTok Shop has also gained more market share from Shein than from Temu: Transactions exceeding $25 increased 16 percentage points year-over-year in January. In contrast, purchases of $25 and under, Temu’s primary market, grew by 7 percentage points.

In mid-January, TikTok was removed from Apple and Google app stores in the U.S. following the enactment of the Sale-or-Ban Act; almost a month later, on February 13, the app was restored to the app stores.

Brands reassess TikTok partnerships amid regulatory uncertainty #
As Jing Daily reported, the recent volatility faced by TikTok has led brands to reevaluate their approach to partnerships and campaigns, and come up with unique contingency strategies.

Some agencies and influencers now include contract clauses allowing content to be repurposed across multiple platforms. Additionally, brands are increasingly investing in first-party data and owned media to better prepare for the uncertainty ahead.