The arrival of TikTok Shop worries French retailers

The world of e-commerce in France is about to experience a shake-up with the imminent arrival of TikTok Shop. Already a success in the United States and the United Kingdom, this platform transforms the customer journey by combining entertainment and impulse buying. While this new trend of social shopping has gained traction elsewhere, it raises concerns in France, particularly among traditional retailers. TikTok Shop is based on a simple principle: integrating products directly into the videos and live streams of content creators, allowing users to buy with just a few clicks without leaving the app. This ultra-smooth shopping model leverages the power of TikTok's algorithm, instantly exposing consumers to items that match their interests. In the United States and the United Kingdom, live shopping and social shopping are experiencing a true boom, driven by a hyper-connected younger generation. However, in France, this trend remains marginal. Consumers are more attached to traditional shopping methods and express a certain distrust towards impulse purchases on social media.

The arrival of TikTok Shop is far from universally welcomed. Many French retailers fear unfair competition. Several factors contribute to this fear. The market is still poorly regulated, and sales on TikTok Shop are exempt from certain constraints imposed on physical stores and traditional e-commerce platforms, which could create a competitive imbalance. Controversial tax practices also fuel anger, particularly the exemption from customs duties on parcels worth less than 150 euros. This advantage allows foreign multinationals to offer very competitive prices, to the detriment of local retailers. Furthermore, the platform's transparency is questioned. The European Commission is closely monitoring the development of TikTok Shop, particularly regarding influencer practices. The promotion of products via sponsored videos raises ethical concerns, especially regarding hidden advertising and consumer protection.

Becoming a successful influencer on TikTok Shop can prove to be extremely lucrative. For example, famous content creator PLouise generated 2 million dollars in sales during a 12-hour live. Such success inevitably stirs up greed, attracting ill-intentioned individuals blinded by their desires. In this context, large retail federations, gathered in Paris on Tuesday, have urged the government to take immediate action to protect French businesses from Asian platforms like Temu, Shein, and TikTok Shop, as well as the customs pressure exerted by the United States.