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Walmart TikTok Livestream Shopping Pilot Test

December 17, 2020
Walmart TikTok Livestream Shopping Pilot Test

Walmart and TikTok jointly announced this morning that they will be collaborating on an initial trial of a novel shoppable experience within TikTok’s social video platform. As you may remember, Walmart previously considered investing in TikTok when the application faced potential prohibition in the U.S. market, contingent upon selling its U.S. assets to a domestic firm, as stipulated by an executive order from the Trump administration—a ban that is currently suspended due to numerous legal challenges. Despite this, Walmart’s interest in TikTok has remained strong. The retailer, while perhaps an unexpected partner for a social media network, recognized the opportunity to connect with a younger demographic of online shoppers through video content and, specifically, live video broadcasts.

This forms the basis of the new test being conducted on TikTok.

During a Walmart livestream event, TikTok users will have the ability to purchase items from Walmart’s apparel collection without exiting the TikTok application, as part of a trial of TikTok’s new “shoppable product” feature. The featured fashion items will be showcased in content created by ten TikTok personalities, spearheaded by Michael Le, a host whose TikTok dance videos have garnered over 43 million followers. Additional creators, including emerging talents such as Devan Anderson, Taylor Hage, and Zahra Hashimee, will also participate. (Avani, Savannah and Cole LaBrant, Andrea Espada, Whitney Madueke, and Alex Costa also joined the event, though this was not publicly announced beforehand.)

All participants will be involved in a special event on TikTok called the “Holiday Shop-Along Spectacular,” scheduled for Friday, December 18 at 8 PM ET on Walmart’s official TikTok profile.

walmart to pilot test livestreamed video shopping on tiktokThroughout the event, the creators will present their preferred Walmart fashion selections in unique and engaging ways. Some may offer viewers a glimpse into their wardrobes, while others might stage a living room fashion show or even a stylish “dance off,” according to Walmart.

TikTok users will have two options for purchasing the featured fashion items.

As products appear on screen, interactive pins will become visible, allowing users to tap and add the item to their shopping cart. They will then be directed to a streamlined mobile checkout process. Alternatively, customers can tap a shopping cart pin at the conclusion of the event to browse all showcased items and select their desired purchases.

Even for those who are unable to attend the live event, they will still be able to purchase the items through Walmart’s TikTok profile after the Shop-Along event concludes.

“We are continually seeking innovative methods to enhance the shopping experience for our customers,” stated William White, U.S. Chief Marketing Officer at Walmart, in a press release. “We are accelerating our efforts to discover new and improved ways to better serve our customers and connect with them where they are. This event was designed for, about, and by our community, reflecting the diverse lifestyles, interests, and styles of a wide range of creators, ensuring that all viewers feel represented, regardless of their background or personal style,” he added.

Walmart clarified that the decision to explore mobile shopping was not a direct result of recent negotiations, but rather a natural progression, as the brand has been actively present on the platform for over a year. (Recent reports from ModernRetail indicate that Walmart has even encouraged its employees to create TikTok videos.)

TechCrunch was informed by Walmart that there is no revenue sharing arrangement with TikTok on sales generated through the app, nor are there any associated fees, as this is considered a collaborative test.

walmart to pilot test livestreamed video shopping on tiktokThis marks TikTok’s initial venture into shoppable video functionality.

The company has been investigating this area for some time, including the introduction of Hashtag Challenge Plus last year, which incorporated a shoppable element into hashtags, directing viewers to a retail site from within TikTok. This year, brands such as Levi’s utilized TikTok’s “Shop Now” buttons, enabling consumers to make purchases through links posted on the platform. Furthermore, a significant agreement this fall saw TikTok formally partner with Shopify on social commerce, allowing Shopify merchants to create, manage, and optimize their TikTok marketing campaigns directly from the Shopify dashboard.

Livestreamed shopping is a rapidly expanding and profitable market, as younger consumers are increasingly turning to influencers and online video for both entertainment and shopping purposes.

Major technology companies have invested in this space to varying degrees, including Facebook (with a strong focus across Facebook and Instagram), Google through its research and development division, Amazon through Amazon Live, Alibaba through AliExpress, JD.com, Pinduoduo, WeChat, and even TikTok’s Chinese counterpart, Douyin.

This trend is also fostering the growth of startups, such as Bambuser and Popshop Live, which have secured new funding rounds in 2020 for their livestreamed shopping platforms, as well as companies like NTWRK and Packagd, which was acquired by Facebook in 2019.

For TikTok, this represents a logical extension of its existing format, where influencers already showcase their favorite products, fashion choices, and styles.

“At TikTok, we are continuously exploring new methods to inspire creativity, foster joy, and provide value to our community,” explained Blake Chandlee, Vice President, Global Business Solutions at TikTok. “Creators and brands have discovered a creative outlet to connect with audiences through TikTok Live, and we are excited to further innovate on this interactive experience to enable our community to discover and engage with the brands they love,” he continued.

“Brands have made a significant impact on the community throughout this year, and we are delighted to see Walmart embrace the creativity of TikTok and this first-of-a-kind experience to meaningfully connect with their community,” Chandlee stated.

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