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TikTok is building a new version of its app for users in the United States ahead of a planned sale of the app to a group of investors, The Information reported on Sunday, citing unnamed sources. This comes as U.S. President Donald Trump said on Friday he will start talking to China on Monday or Tuesday about a possible TikTok deal. He said the United States “pretty much” has a deal on the sale of the TikTok short-video app. TikTok has developed a plan to launch the new app to U.S. app stores on September 5, the report said. Last month, Trump extended to September 17 a deadline for China-based ByteDance to divest the U.S. assets of TikTok. The report added that TikTok users will eventually have to download the new app to be able to continue using the service, although the existing app will work until March of next year, though the timeline could change. TikTok did not immediately respond to a Reuters request for comment. Reuters could not immediately confirm the report. A deal had been in the works earlier this year to spin off TikTok’s U.S. operations into a new U.S.-based firm, majority-owned and operated by U.S. investors. That was put on hold after China indicated it would not approve it following Trump’s announcements of steep tariffs on Chinese goods. Trump said the United States will probably have to get a deal approved by China. Mrinmay Dey, Reuters
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E-Commerce
Wall Street is pointing to a lower open Monday as the Trump administration steps up pressure on trading partners to quickly make deals before a Wednesday deadline.The U.S. will warn trading partners that higher tariffs could kick in Aug. 1.Futures for the S&P 500 fell 0.3% before the opening bell, while futures for the Dow Jones Industrial Average slipped less than 0.1%. Nasdaq futures slid 0.5%.Trump and his top trade advisers said over the weekend that the president could extend the tariff deadline if countries were making concessions and negotiating in good faith.“We expect markets to be volatile into the 9-July deadline when the 90-day pause on President Trump’s reciprocal tariffs expires for non-China trading partners,” the Nomura Group wrote in a commentary.The near-term outlook will likely hinge on several key factors like the extent to which trading partners are included in Trump letters, the rate of tariffs, and the effective date of such tariffs, according to Nomura.“With the July 9 tariff deadline fast approaching, all eyes are trained on Washington, scanning for signs of escalation or retreat. The path forward isn’t clear, but the terrain is littered with risk,” Stephen Innes, managing partner at SPI Asset Management said in a commentary.In equities trading, Tesla tumbled 6.5% as the feud between CEO Elon Musk and Trump reignited over the weekend. Musk, once a top donor and ally of Trump, announced that he was forming a third political party in protest over the Republicans’ spending bill that passed late last week.Trump criticized Musk in a social media post, suggesting that Musk’s disappointment in the bill was because the legislation ended an “electric vehicle mandate,” which Trump says Musk knew was coming.Investors fear that Musk’s companies, which receive significant subsidies from the federal government, could suffer further if his feud with Trump continues to escalate.Molina Healthcare tumbled 6% after the insurer lowered its profit guidance due to rapidly accelerating costs. UnitedHealth Group also recently reported a spike in costs that forced it to cut its forecast, sending its stock tumbling in April.Oil prices fluctuated after OPEC+ agreed on Saturday to raise production in August by 548,000 barrels per day.U.S. benchmark crude was essentially unchanged early Monday at $67 per barrel. Brent crude, the international standard, gained 40 cents to $68.70 per barrel.At midday in Europe, Britain’s FTSE 100 inched up 0.1%, while Germany’s DAX added 0.8%. In Paris, the CAC 40 was up 0.2%.In Asia, Japan’s Nikkei 225 shed 0.6% to 39,587. 68 while Hong Kong’s Hang Seng index edged down 0.1% to 23,887.83.South Korea’s KOSPI index rose 0.2% to 3,059.47 while the Shanghai Composite Index edged 0.1% higher to 3,473.13. Australia’s S&P ASX 200 fell 0.2% to 8,589.30.In currency trading Monday, the U.S. dollar rose to 145.42 Japanese yen from 144.44 yen. The euro edged lower to $1.1727 from $1.1779. Teresa Cerojano and Matt Ott, Associated Press
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E-Commerce
TikTok Shop is quickly becoming Gen Z’s preferred way to buy beauty. Fenty, Tarte, and Maybelline have all seen rapid growth on the app. And now DTC darling Glossier is joining their ranks. The move marks the brands latest attempt to court Gen Z consumersmore than half of whom have made purchases via TikTok Shop. Roughly a third of Gen Z consumers say TikTok is their preferred shopping channel, and some 60% are on TikTok Shop daily. On top of that, last year beauty and personal care was the top-selling category on the platform, generating $2.5 billion in gross merchandise value. Since it launched in the U.S. in September 2023, TikTok Shop has become the countrys eighth-largest beauty retailer, according to a NielsenIQ report. A consumer trends report from the New Consumer and Coefficient Capital even found that TikTok Shopwhich, as of 2024, counted an estimated 150 million daily active userswas more popular among Americans than Shein and Sephora. Already, brands have seen success on the platform (Tarte, for example, brought in $4.85 million in sales via TikTok Shop in May alone). The move is part of Glossiers multi-platform expansion that includes its online store, 11 permanent retail locations, and a presence in retail wholesale. The company started selling at Sephora in 2023its first major move to a wholesale retail model. The brand saw a $100 million lift in sales in the first year of the partnership. The transformation we’ve driven over the last four years has been deeply listening to [our] community and watching and seeing where they are going and how Glossier meets them, says Glossier CEO Kyle Leahy, who adds that the company decided to sell on TikTok Shop now because of feedback from its fans and customers. The news comes after many brands, including E.l.f., LOréal Paris, and The Ordinary joined TikTok Shop last year. Leahy says Glossier has 3 billion hashtag views on TikTok. That engagement could create a direct pipeline from conversation to purchase. We are seeing with how our consumers are engaging on this platform that this is where the next generation is continuing to move in beauty, she says. It seems like the logical and very authentic next step for us to continue [to] connect with our community where they’re shopping for beauty. Glossier has already surpassed 1 million TikTok followers and has seen 15 million likes on its posts. Glossier’s brand-page TikTok content includes day in the life and get ready with me-style videos as well as influencer collaborations and behind-the-scenes content from the company’s lab. While Glossier has carefully curated its in-store presence, with custom-made gondolas to create a consistent visual identity, the brand will have less control over its appearance in the online store, though it will still be heavily curating its posts. Glossiers always been about the community. It’s always about people’s stories. A platform like TikTok Shop where we are partnering with creators is actually a very uniquely Glossier thing, Leahy says. That doesnt mean the brand is going all-in on its digital presence. Leahy says Glossier receives hundreds of handwritten letters and cards monthlyfrom wedding invitations to thank-you notes for being there at events like high school graduations and first jobs. [Photo: Glossier] Glossier’s next phase Joining TikTok Shop can provide a huge lift to brands. Hailey Biebers cosmetic and skincare brand Rhode has yet to launch at a retailer, but it has sold more than 112,000 units via TikTok Shop. In May, partly on the strength of its popularity attracting Gen Z customers on TikTok, the company was acquired by conglomerate E.l.f. in a deal valued at $1 billion. Rhodes products will be sold at Sephora starting in the fall. Other brands sold in retail have also created TikTok-specific drops on the platform, before the products enter retail. Leahy, who spearheaded Glossiers multi-platform sales approach after she joined in 2022, announced in June that she is leaving the company by the end of this year. Under her leadership, Glossier also expanded its successful fragrance business, which continues to dominate the category at Sephora. Still, the company has found it difficult to maintain the momentum it once had. In June, Rachel Strugatz at Puck reported that Glossieronce valued at nearly $2 billion and rumored to be going publicis struggling to attract capital, with some investors saying the company is overvalued. A couple of months ago Glossier was raising a down round. According to Puck, the company was seeking $250 million, comprised of a $100 million investment into Glossier and a $150 million in secondary to buy out existing stakeholders. With the right marketing, a move to TikTok Shop may juice its sales enough for investors to rethink their stance.
Category:
E-Commerce
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