ByteDance already sold $26 billion of clothing and other merchandise in 2020.

A Bloomberg report says Zhang Yiming, the AI genius who built ByteDance into a global behemoth via apps such as TikTok, is already flexing his muscles for the next battle. Not content with queering the pitch for media rivals such as Facebook (NASDAQ: FB), Zhang this time has e-commerce, and Alibaba (NYSE: BABA), in his sights.

The stakes are huge

China’s e-commerce market is potentially worth $1.7 trillion. Not content with ByteDance’s sales of $26 billion during 2020, Zhang wants a much larger piece of that lucrative cake.

He has hired thousands of employees and tied up with Xiaomi Corp’s (HKG: 1810) Lei Jun to beef up online sales via short videos and live streams. Note that TikTok’s Chinese version, Douyin, could potentially chalk up $40 billion of ad revenues this year.

Zhang is therefore not talking small numbers: by 2022 Zhang wants $185 billion of sales under his belt. That stream will likely generate a substantial revenue stream through commissions because ByteDance does not intend to sell merchandise directly on its own.

The key strategy here would be to use its AI and internet-driven recommendations to push e-commerce sales. That will speak to a rising trend of more Chinese buying goods while watching live streams than previously witnessed.

The push could attract more merchants to the platform, and of course, their lucrative ad spend.

IPO on the anvil

Apart from the business angle, a fast-growing e-commerce business could also enhance the allure of ByteDance in the eyes of IPO investors.

The hotly-anticipated IPO could therefore garner a valuation substantially north of ByteDance’s current tag of $250 billion.

People aware of the IPO efforts have told Bloomberg that the media and internet giant has already commenced work with advisers, and is weighing the respective advantages of an IPO venue at either Hong Kong or the U.S.

Related Story:   A Bitcoin Video Lands Up On TikTok, Goes Viral