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TikTok, U.S. Big Banks, and the Billion-Dollar Beauty Boom: ByteDance’s $10.8B Loan

What ByteDance’s $10.8B Loan Reveals About Culture and Commerce

In September 2024, ByteDance, which is the Chinese parent company of TikTok, secured a $10.8 billion loan from a consortium of international lenders, including major U.S. banks CitigroupGoldman Sachs, and JPMorgan Chase. While the size of the loan drew attention from financial media, its impact extends well beyond Wall Street. This move highlights the increasingly tight link between digital platforms, consumer culture, and the global beauty economy.

TikTok, once seen primarily as a Gen Z platform, has evolved into a global retail engine, especially in sectors like cosmetics and skincare. For beauty brands, this financial infusion into TikTok’s parent company is not just a footnote in tech finance, it’s a signal of major shifts ahead in commerce, culture, and control.

The TikTok Effect on the Beauty Industry

TikTok’s influence on beauty trends is now well-documented. From viral “no makeup” looks to product sellouts driven by micro-influencers, the app has become a top discovery engine for beauty products. For indie and clean beauty brands in particular, TikTok provides a direct line to millions of engaged consumers with a preference for authenticity and transparency.

Cosmetics and skincare—especially clean, sustainable, and cruelty-free offerings—are among the top-selling categories on TikTok Shop, the app’s in-house e-commerce platform. ByteDance’s massive loan will be used in part to expand this commerce infrastructure, enabling faster shipping, better payment options, and more robust support for sellers.

Beauty, Algorithms, and the Politics of Influence

While discussions about a potential TikTok ban in the U.S. have been prevalent, it’s increasingly evident that an outright ban is highly unlikely. The fact that major NYC-headquartered banks like Citigroup, Goldman Sachs, and JPMorgan Chase provided ByteDance with such a significant loan, and reportedly coordinated the financing, suggests a commitment that would be hard to reconcile with any immediate plans to shut down TikTok. The issue isn’t necessarily about the platform’s continued operation, it’s about control, how much influence global powers, including the U.S., want over platforms that shape culture, commerce, and personal data.

French tech mogul Xavier Niel and ByteDance board member (who just happens to be partners with the daughter of Bernard Arnault, founder, chairman and CEO of LVMH, the world’s largest luxury goods company) captured this tension in an interview when he said the following:

“I don’t want my kids relying on US algorithms.” If there’s going to be bias, says Niel, he wants that bias to be European. “I love the US. That’s not the point. But we are completely different in our way of seeing the world.”



Source: Wired

As ByteDance platforms like TikTok challenge the traditional dominance of Silicon Valley, the battle for control–over both algorithms and cultural narratives, has become a defining issue of this era.

What This Means for Beauty Brands

ByteDance’s $10.8 billion loan is more than just a headline. It’s a marker of how ByteDance platforms like TikTok are reshaping not just retail, but also global culture. In the beauty industry where products meet personal identity, and where trends are born online the implications are profound.

Oh là là! Is TikTok Rewriting Beauty Commerce with China’s Playbook?

TikTok Is Becoming the Future of Beauty Commerce

TikTok isn’t just a platform for beauty trends, it’s rapidly transforming into a global commerce powerhouse. By adopting strategies that have proven successful in China, TikTok is reshaping how beauty products are discovered, sold, and scaled.

China’s Model: Where TikTok Is Headed?

In China, TikTok’s sister app, Douyin, has revolutionized e-commerce through live-streaming. Influencers like Zheng Xiangxiang have mastered the art of rapid product promotion, showcasing items for just three seconds each. Despite the brief exposure, her sessions can generate millions in sales within a week. Zheng’s minimalist approach, highlighting products swiftly and efficiently, has captivated audiences and demonstrated the immense potential of live commerce.

TikTok’s Western Pivot

It seems TikTok is mirroring China’s success by introducing features like TikTok Shoplive shopping events, and influencer affiliate programs in Western markets. These tools aim to integrate product discovery and purchase within the app, streamlining the consumer journey and enhancing conversion rates. This is not surprising considering Beijing-based ByteDance is the parent company of both TikTok and Douyin. TikTok and Douyin are essentially the same platform, though Douyin is available only in China and has more advanced e-commerce features, and TikTok is the international version. ByteDance was co-founded by Zhang Yiming in 2012, though Zhang Yiming has since stepped down from the role of CEO. TikTok’s current chair is Liang Rubo, listed by TIME Magazine as one of the most 100 influential people in AI in 2024.

The Role of Xavier Niel

In 2024, Xavier Niel, a French billionaire and founder of telecom giant Iliad, joined ByteDance’s board. Niel’s expertise in technology and infrastructure, combined with his connections to the luxury sector through his partnership with Delphine Arnault of LVMH, positions him to influence TikTok’s global strategy, particularly in Europe.

Implications for Beauty Brands

For beauty brands, TikTok’s evolution presents both opportunities and challenges. The highest-grossing product category on TikTok Shop is reportedly beauty and personal care. The platform’s shift towards live commerce emphasizes the need for real-time engagement and rapid content creation. Brands must adapt to this fast-paced environment to remain competitive.

That said, while TikTok can be a powerful tool for beauty brands, it is not an absolute necessity for survival or profitability. Brands must assess their target demographics, marketing strategies, and brand identity to determine the most effective platforms for their growth — especially considering TikTok may finally be banned on June 19th.

The Price of Hype: How Influencer Marketing is Distorting the Beauty Market

In today’s beauty economy, the glossiest packaging isn’t always found on the shelves — it’s on TikTok.

As influencer marketing continues to dominate the beauty landscape, the line between genuine product endorsements and paid promotions has become increasingly blurred. TikTok, in particular, has become the platform of choice for beauty brands looking to scale quickly — often without the friction of traditional marketing models. But the reliance on influencers, especially those gifted products or paid to promote them, is raising serious questions about transparency, authenticity, and long-term brand value.

The Illusion of Honest Hype

While influencer partnerships can catapult a brand from obscurity to cult status just about overnight, they often come at the cost of trust. Many beauty enthusiasts and clean beauty consumers are becoming skeptical. Why? Because the reviews they see are frequently filtered not just by camera effects, but by a lack of disclosure. Gifted PR packages are rarely met with critical feedback. After all, it’s tough to bite the hand that feeds you, or your content calendar!

This creates a skewed marketplace where some products are hyped beyond their performance, and genuine feedback is buried under waves of sponsored content. For clean beauty consumers who prioritize ingredient transparency and ethical sourcing, this lack of honesty feels especially disheartening.

Case in Point: Wonderskin’s $50 Million Series A

Wonderskin is one of the latest examples of a brand successfully leveraging influencer-first marketing to attract major capital. The company, known for its viral lip stains and peel-off tints, recently secured a $50 million minority investment in a Series A funding round, which is a massive vote of confidence in its social-first growth strategy.

But in the long term, what happens if the products don’t live up to the influencer-fueled hype?

A Market Saturated by Sameness

The influencer economy has made it easier than ever to launch a beauty brand, but also harder to differentiate one. With hundreds of new products flooding the market each month and TikTok trends evolving faster than product development cycles, brands are increasingly forced to chase virality over innovation or long-term positioning.

This saturation is affecting even the pioneers.

In early 2025, Juice Beauty, one of the early champions of clean beauty, announced it would be liquidating after nearly two decades in the business. Founder Karen Behnke pointed directly to the overwhelming competition in the market, stating that the current environment makes it incredibly difficult for independent, values-driven brands to survive.

The result is a beauty landscape oversaturated with sameness: similar packaging, overlapping ingredient claims, and indistinguishable marketing voices all shouting into the same TikTok void.

Toward a More Transparent Beauty Economy

The clean beauty movement was founded on values like transparency, integrity, and health-conscious formulations. Isn’t it time for its marketing to reflect those same principles?

Consumers are getting smarter. They’re starting to ask, “is this product actually good — or just good at going viral?”

For investors, this shift presents both a challenge and an opportunity. Brands that build trust now — rather than just buzz — will likely see stronger long-term value and more sustainable customer loyalty.

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