Technology

Will the ByteDance Fanno European Trading App close?

While TikTok has been successful in the social media sector, including in France, ByteDance is having a hard time pursuing its e-commerce diversification strategy. Fanno, an online shopping app launched in France, Germany, Spain, Italy and the UK in November 2021, failed to succeed in France.

Fanno is a marketplace that brings together Chinese sellers and European buyers such as Ali Express. There are inexpensive items such as a €5 smartwatch, a €6 “synthetic leather” bag, a €12 cheerleader costume, and much more expensive items like a food processor or treadmill.

In the bowels of app stores

The app, launched without much communication support, was downloaded 103,000 times in France alone, according to analytics tool Data.ai, on iOS and Android. Today it seems to no longer have a commercial existence. After 48,400 downloads between the end of November and the end of December, the number of downloads fell to 54,000 during the first three months of 2022 and less than 1,000 in the second quarter.

At best, on January 20, 2022, on Apple smartphones in France, Fanno ranked 63rd in the e-commerce app downloads ranking. After April 5, the app disappeared from Data.ai on the iOS platform. By that time, she had dropped to 480th place.

On Android smartphones, Fanno peaked between January 1 and 4, 2022, climbing to 12th place among shopping apps in terms of daily downloads. Offering goods at low prices, the market was supposed to attract consumers with smartphones cheaper than Apple.

Consumer review site Trustpilot has a total of 26 fanno reviews, mostly negative.

Rumors of closing in May

These numbers echo rumors spread by a Chinese tech website. Pandaily, which in May last year mentioned the closure of the application. The rumor was then denied by the company. Sources who relayed the news said that the Fanno team was disbanded in April as orders did not reach a satisfactory level. The audience in Italy is clearly much better than in other European markets.

Job offers currently posted on Bytedance in the United Kingdom (the center of TikTok’s parent company in Europe) do not mention Fanno even in e-commerce-focused ads. On the other hand, traces of the market can still be found in some job descriptions for e-commerce professionals in Asia, which lists Fanno among “TikTok e-commerce platforms” as well as the TikTok store. which focuses on live shopping.

Bytedance wants to refocus on its core business

The future of Fanno and, more broadly, TikTok e-commerce in Europe is uncertain to say the least. According to information from Financial Times, TikTok will abandon its strategy of expanding online shopping in Europe and the United States. This teleshopping model, which was profitable in China, did not catch on in the Old Continent.

Launched in the UK last year, it was due to debut in France, Germany, Spain and Italy in the first half of the year, but plans have been revised in light of the Channel results. The London-based e-commerce team suffered a loss of employees followed by the dismissal of its director, according to the FT. Under these circumstances, it is difficult to see how Fanno can still benefit from the investment required to maintain it.

Especially as ByteDance CEO Liang Rubo reportedly said internally on Aug. 31 that the company is looking to cut its investment in activities outside of its core business in a context where many initiatives have failed to deliver the expected results, according to a Chinese tech publication. late. Post and South China Morning Post. By contacting L’Usine Digitale, ByteDance did not respond to our request.

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