UPDATE: TikTok Is Reportedly Enlisting LVMH To Help Combat Fake Goods Sold in Its App
Following reports that TikTok wanted to grow e-commerce “tenfold.”
Update: A representative for Benefit Cosmetics has said that LVMH and TikTok are not currently pursuing a partnership to combat counterfeit items on the TikTok Shop. Stay tuned for more details on the story.
TikTok is gearing up to grow its e-commerce business in 2024, aiming for $17.5 billion USD in sales by the end of the year. As part of that goal, the app wants to combat faux luxury items sold in the TikTok Shop.
The ByteDance-owned app is in talks with luxury brand conglomerate LVMH to prevent counterfeit items from being sold in-app, Bloomberg reported.
The two companies want to team up to deliver an “elevated shopping experience” Toto Haba, senior vice president of global omni-marketing for Benefit Cosmetics, which is owned by LVMH told Bloomberg.
As TikTok angles to grow its e-commerce business “tenfold,” per a previous report, the app is seemingly concerned that faux items will dissuade customers from shopping there. It also appears to be differentiating itself from other online shopping platforms based in China, such as Alibaba, particularly because the TikTok Shop allows third-party sellers to list their products.
“It’s important for us to guard our IP,” Haba told Bloomberg. “TikTok and ByteDance seem much more willing to talk with us on that and set the right guardrails.”
Haba also said that the app had already flagged and removed fake Benefit cosmetics products from the TikTok shop.
The alleged partnership follows the news that TikTok would be hiking its seller fee from 2% to 8% by July 2024.
