TikTok’s creators are looking to diversify as the threat of a US ban looms large

Charlie D’Amelio is the second most followed creator on TikTok, where the 19-year-old former competitive dancer and her sister Dixie have made tens of millions of dollars.

But D’Amelio can’t be sure how long he’ll be able to show short viral videos to his 152 million followers. That’s because a bill supporting a potential ban on TikTok, which is owned by China’s ByteDance, is headed to the floor and already has the support of President Joe Biden.

Unsure which way the political winds will blow, D’Amelio is looking to build her presence elsewhere. Her latest venture is a partnership with Shopify to bring the family’s online shoe brand to physical stores.

“You have to remember that social media comes and goes,” D’Amelio said in an interview at Shopify’s D’Amelio Footwear Pop-Up in New York on Friday. “There are new apps, there are new people, there are exciting new trends. You can’t always be first in line for everything.”

D’Amelio and other family members spoke to CNBC at the store’s opening. Given the political and national security concerns surrounding TikTok, creators are focusing on other ways they can market their brand.

“Starting a brand … takes you out of it,” said Mark D’Amelio, Charlie’s father and CEO of D’Amelio Brands. “It’s a hamster wheel and it gets you out of it. And you’re less dependent on the platform.”

Members of the Chinese Communist Party’s House Select Committee introduced a bill last week that would require ByteDance to divest from TikTok or face a US ban. On Thursday, the committee voted 50-0 to send the bill to the floor. Biden said Friday he would sign the legislation if Congress passes it.

While TikTok CEO Shou Zi Chew has denied any ties between the app and the CCP, U.S. regulators and lawmakers have raised concerns about the company’s Chinese ownership and the possibility that user data could be shared upon request with the government.

“There’s definitely a little bit of fear when it comes to social media, just because you never know what’s next,” Charlie D’Amelio said.

D’Amelio gained popularity on TikTok in 2019, and two years later was named the platform’s highest-paid creator from Forbes. She and her sister made a combined $27.5 million that year, the magazine said.

On TikTok, users can make money through the app’s Creativity Program, reward systems targeting popular videos that are longer than a minute. Creators can also earn revenue from brand partnerships, affiliate sales on the TikTok Shop, and followers can send users “gifts” during live streams.

Since the family became famous, its members have been featured on Hulu’s reality show, “The D’Amelio Show,” which just finished its third season. The sisters have also worked with various fashion brands including Prada, Burberry and Puma.

In September 2022, the family launched D’Amelio Brands with products including D’Amelio Footwear and the Be Happy Snacks line of popcorn. The venture raised a $6 million seed round in 2022 from notables such as Fanatics CEO Michael Rubin, entrepreneur Richard Rosenblatt and Eddie Cue, of Apple Senior Vice President of Services. Last year, it raised $5 million from Fifth Growth Fund.

With Shopify, the D’Amelio family has partnered to bring their shoes to pop-up events in Los Angeles and New York. Shopify powers stores through the company’s point-of-sale system.

Shopify said D’Amelio Brands’ next goal is to open a permanent brick-and-mortar store, bridging the gap between the digital creative economy and the physical world of retail.

Shopify reported a fivefold increase in offline sales since 2019, indicating a significant shift in consumer behavior.

“Fans really want to come and feel the brand and meet the creators and touch and feel the products,” Jessica Williams, Shopify’s director of brand partnerships, said in an interview

In 2023, Shopify’s offline sales totaled $441 million $7.1 billion in revenue, or just over 6% of the total. This includes revenue from payments, subscriptions and point-of-sale hardware.

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