LVMH is reportedly in discussions with TikTok and its parent company, ByteDance Ltd., to address concerns about the sale of fake luxury products on the world’s top short video-sharing platform.
The app is popular across all age demographics in selling and recommending “dupes,” a hashtag referring to cheaper, duplicate products that currently has 6.6 billion views. The trend is massively contributing to the issue of counterfeits, as recognized by the luxury conglomerate LVMH.
From beauty products by Benefit to Louis Vuitton bags, many items sold by vendors on TikTok are actually counterfeits. This not only tarnishes the reputations of these luxury brands but also adversely impacts the sales of their official products.
Toto Haba, Senior Vice President of Global Omni-Marketing for Benefit Cosmetics, an LVMH-owned brand, shared insights into talks with TikTok, emphasizing that both companies aim to “set the right guardrails.” The app is already flagging apparent counterfeit products to the company.
Given LVMH's existing collaboration with Alibaba Group for its Tmall marketplace, a potential partnership with TikTok could further enhance the platform's credibility within the B2B luxury fashion sector.
The discussions align with TikTok's ambitious goal of reaching $17.5 billion in US e-commerce business by 2024, as reported by Bloomberg.
LVMH considers these discussions pivotal in safeguarding intellectual property, especially in light of TikTok Shop's ongoing integration and expansion initiatives, shedding light on the ongoing complexities faced by online marketplaces in the B2B luxury fashion landscape.