TikTok Shop expands with pre-owned luxury fashion in the UK
TikTok's e-commerce division, called TikTok Shop, is expanding its reach by launching a secondhand luxury fashion category in the UK. This strategic move places TikTok Shop as a potential rival to established online marketplaces such as The RealReal, Depop, Vestiaire Collective, Poshmark, and Mercari. The secondhand luxury category has been successfully operating in the US for over six months.
Access to pre-owned luxury goods
UK customers will now have the chance to buy pre-owned high-end clothing, designer handbags, and other accessories directly through the TikTok app. Initially, only five UK brands will be featured on the platform: Sellier, Sign of the Times, Luxe Collective, HardlyEverWornIt, and Break Archive. Since its inception in 2022, TikTok Shop has reported impressive sales figures with approximately $1 billion worth of products sold.
Tackling counterfeit concerns with special policy
Despite its success, concerns have been raised about the potential for counterfeit and substandard products on the platform, a common issue faced by large e-commerce sites like Amazon and eBay. To combat this, TikTok Shop has introduced an anti-counterfeit policy that promises a full refund, if a seller is found to have sold a fake product. The company is also in talks with luxury goods firm LVMH to further address counterfeiting issues, according to Bloomberg.
Authentication measures for secondhand brands
In the US, all secondhand brands on TikTok Shop have to get certificates from third-party authenticators. To ensure the authenticity of designer handbags on its platform, TikTok has joined hands with authentication services Entrupy and Real Authentication. On the other hand, a representative from TikTok confirmed to TechCrunch that all five UK brands launching on the platform, have their own internal authentication process.
TikTok Shop capitalizes on booming preowned luxury market
The introduction of the secondhand luxury vertical, is a strategic move by TikTok Shop to tap into the thriving preowned luxury items market, which was worth $49.3 billion in 2023. This expansion aligns with the growing trend of consumers embracing preloved fashion, offering secondhand brands in the UK an opportunity to connect with a larger audience. Popularity of secondhand fashion on TikTok is evident, with more than 144,000 posts using hashtag #secondhandfashion, which has bagged approximately 1.2 billion views.
Potential US ban could impact TikTok's e-commerce arm
The latest development comes amid news that the US House of Representatives passed a bill requiring ByteDance, TikTok's parent company, to sell the app or face a potential ban in the US. This move could significantly affect American merchants selling on TikTok Shop.
