Why should a “supermarket” buy TikTok, why should the old brand also do social e-commerce

The bid by retail giant Wal-Mart for the short video platform TikTok (overseas edition of TikTok) stunned investors and
But what happened next could be more disruptive and show its digital ambitions.

On the surface, this old-brand physical retail giant might not, after all, be the best buyer for TikTok, this latter is more common with the so-called “Generation Z” (post-95 + 00 equivalent in China).

But a closer look at its digital aspirations shows that, as the content-trade line begins to blur, this move is part of a longer-term strategy for attracting more customers, advertisers and sellers.

If successful, Wal-Mart ‘s offer to its partner Microsoft can also boost its upcoming service of delivery subscription, making it a bigger challenge to Amazon’s competitor Prime operation. TikTok could also become a sales tool Wal-Mart items, forcing the 58-year-old retailer to contend with the new area of “private e-commerce” Yahoo, and its website for Instagram.

Deborah Weinswig, the founder and CEO of market analysis company CoreSight Analysis, said: “Walmart, it’s like making a rocket, and delivering content and company to customers. Provide an experience that’s super personalized.

Wal-Mart reported on Thursday that the company is working with Microsoft to bid for US business in TikTok,

But Wal-Mart gave no clarity in a brief statement about the tender or the essence of its involvement. But this did not deter investors’ enthusiasm, driving the share price of Wal-Mart up 4.5 per cent,
The biggest improvement in seven weeks.

The TikTok acquisition would help Doug McMillon, CEO of Wal-Mart, free the business from physical constraints;
Ever since taking the reins in 2014, he’s been passionate about it. This will raise more of Wal-Mart’s Profitable market for third parties and advertisement companies.

Furthermore, TikTok will allow Walmart to reach the huge, young and loyal user base that advertise companies and their consumers of the blue chip dream of. These users are permitted to move part of their marketing budget
From Twitter , Facebook and Amazon to Walmart’s Department of Internal Media.

The data obtained from users of TikTok can also influence the type of items that Wal-Mart wants to sell on its website.
Third parties are selling goods on site Wal-Mart. Wal-Mart provides no warehousing facilities yet they ‘re going to charge fees. Users of TikTok have just reached their golden age,
That makes an ideal time to attract them now.

Neil Saunders, an analyst at the market research firm GlobalData Retail, said: “Internet media like TikTok would
Make it easy for Walmart to meet the market she needs, and keep them. It occupies an significant part of Socio-media role. Which not only enables Wal-Mart to step up its marketing activities, which also helps it to acquire a wealth of data to help more efficiently target the shoppers.

RBC Capital Markets analyst Mark Mahaney said the TikTok combination would allow Wal-Mart to take over
Profit from Social Media purchases.

RBC noticed a quarter of US Instagram users were making a
This year’s site purchase, up from 15 per cent a year earlier. There are actually not many direct transactions on the
TikTok in the United States but this situation may change under Wal-Mart ‘s management.

Jordan Berke helped lead Wal-Mart’s digital business before leaving last year to start Tomorrow Retail Consulting

in tiktok Company. He said: “Social engagement and trade are the magic recipe of the future” Retail. Facebook is in the leading role of being a mega app in the U.S. Will firmly placed Wal-Mart and Microsoft in second place.

Analyst Mahaney said Amazon still has the lead, as it has almost a comprehensive history of shopping 500 million users, most of whom shop on its website online. By contrast, approximately 265 million

Every week people shop at Wal-Mart stores or its website, but Wal-Mart knows very little about them. That’s why Walmart unveiled the latest Walmart+ subscription service, which could help close the gap.

Just enough cash

Wal-Mart, the world’s largest physical retailer, has a massive cash surplus and debt, for which it could not have
The TikTok acquisition would be difficult to complete. The main question is how distinct these social media are
On Walmart’s previously acquired digital platforms.

Rupesh Parikh, managing director of the Oppenheimer&Co brokerage company, said: “Walmart is neither social
Neither a media company nor a true technology business. That can be the greatest danger. With that in mind,
We don’t think that there are too many strategic acquisition factors.

But that justification is adequate for Dong Minglun, when conventional retailers are in chaos. He has a list of the biggest retailers in years, urging him to continue to adjust to the new situation, If not, he will replicate the bankruptcy of chains such as Kmart and Woolworths.
Help him overcome those obstacles.