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TikTok Eyes Live Shopping in US While Taking Care Of National Security Concerns

  • ByteDance Ltd's TikTok is launching live shopping in North America and aims to outsource its operation after its U.K. e-commerce experiments struggled to take off.

  • Los Angeles-based TalkShopLive will likely collaborate with TikTok helping bring TikTok Shop to the U.S., the Financial Times reports.

  • TalkShopLive will provide the underlying technology and support for live streams hosted by influencers, brands, and retailers.

  • TikTok launched TikTok Shop in the U.K. in 2021, its first market outside Asia after TikTok's sister app in China, Douyin's massive success.

  • The developments coincided with TikTok facing heightened scrutiny in the U.S. over national security threats from China.

  • The U.S. preliminarily agreed to resolve national security concerns posed by the Chinese-owned video app TikTok just weeks before November's midterm elections.

  • TikTok's plan to launch shopping features across Europe earlier this year got postponed as it failed to gain traction in the U.K. market. It also faced regulatory scrutiny over its aggressive working culture.

  • Social media rivals Meta Platforms Inc (NASDAQ: META), which owns Instagram and Facebook, and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGLYouTube found limited success with live shopping features, the report added.

  • Meta will likely shut down its live shopping feature on Facebook in October and is still in the early stages of shopping on Instagram.

  • Livestreaming participation in the U.S. trailed other countries like China, indicating the importance of trial periods and consumer education, an analyst said.

  • Alibaba Group Holding Limited's (NYSE: BABA) famed live streaming sales influencer Li Jiaqi reappeared on screens after a three-month-long hiatus.

  • Jiaqi was known for his live-streaming channel on Alibaba's Taobao Marketplace.

  • Taobao users paid nearly 30 million visits to his channel in the first hour.

  • Among the 26 products he marketed were modestly priced ones, most of which quickly sold out as viewers flooded the screen.

  • Price Action: BABA shares traded lower by 0.89% at $79.28 in the premarket on the last check Monday.

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