TikTok is experimenting on AI search

For Gen Z, TikTok is becoming the go-to search engine with about 40% ditching Google Search and heading straight to TikTok for answers.

• Over 72% of Gen Z also make buying decisions based on recommendations found on TikTok.

Seeing this trend, TikTok is focusing on its search game with the help of AI.

• They're currently testing a feature called "AI Smart Search" powered by ChatGPT.

Since TikTok has put money into features that make searching on their app profitable, they have a good reason to keep people using the search bar according to Tubefilter.

While these features are still under testing, TikTok has clear intention to become a major search engine. Earlier this week, even ChatGPT released a new version that browses the internet for its answers.

Shopify sues a company that allegedly copied its codes

Shopify has filed a lawsuit against Shopline, a subsidiary of the social media company Joyy, for copyright infringement.

• It focuses on Shopify's "Dawn" program which lets merchants design and customize their storefronts.

Shopify claims that Shopline made a copycat version of Dawn called "Seed" with lots of evidence to support it.

• They claim Shopline's "Seed" product copies code like file structures, file names, function names, and even icon codes

• The name "Shopify" reportedly appears in some versions of Seed's code.

• Shopify found a webpage hosted by Joyy with the title "Seed Theme" that still contained references to "dawn-test."

Shopify claims to have poured "many thousands of hours" and "many millions of dollars" into creating Dawn.

Want to dominate in India? Focus on tier 2 and 3 cities

Forget the big districts. Tier 2 and 3 cities (less developed cities in India) are witnessing a more and more growth in ecommerce.

While tier 1 cities like Delhi hold the biggest chunk of the ecommerce market (37.1%), tier 2 and 3 cities are catching up fast, with a combined share of 62.9%.

• During Amazon India's festive sale in 2023, 80% of 1.1 billion visits came from these cities

Several factors are at play.

• Tier 2 and 3 cities have a growing population with smartphones

• There's more desire for a better lifestyle, with more disposable income as fuel. (called "aspirational spending")

Experts like Sonal Arora of GI Group Holding confirm this trends saying there's a lot of expansion happening in tier 2 and 3 cities with companies recognizing India's consumer market and the job opportunities.

• Half of all online shoppers in urban India are from here, and this is expected to reach nearly 60% by 2030.

For businesses, this means understanding the unique preferences of tier 2 and 3 consumers. According to Creative Thinks Media:

• Unlike their metro counterparts who chase the latest trends, these shoppers are often first-time online buyers.

• Affordability is key, and recommendations/opinions from friends and stories hold more weight than online reviews.