As TikTok Is Squeezed, ByteDance Makes Lemon8

Lemon8, the sibling app of TikTok, is steadily growing its user base while TikTok faces challenges on Capitol Hill and the first state-approved measure to ban it.

The Lemon8 app, which like TikTok is owned by Chinese company ByteDance, appears to be a hybrid that combines the curation and inspiration aspects of Pinterest and Instagram where users can find or create content on topics such as beauty, fashion, travel, fitness and pets. Unlike TikTok, it lets users upload still photos.

Lemon8 was first launched in Japan in 2020 and was quietly introduced to the U.S. and the U.K. in February of this year. Lemon8 gained notable traction in early April with 650,000 downloads in the U.S. alone. Apptopia data via Axios reveals that the app has been downloaded globally over 17 million times since its launch. Despite the possibility of facing scrutiny due to the potential restrictions on TikTok, Lemon8 continues to grow.

It is worth noting that major brands have not yet appeared on the app, and there have been reports of fraudulent brand accounts due to the absence of a verification process on Lemon8.

TikTok’s Potential Ban

TikTok CEO Shou Zi Chew last month testified for about five hours before the House Committee on Energy and Commerce, fielding questions on the privacy of American citizens’ data, online safety for children and TikTok’s potential connections with the Chinese Communist Party.

While it remains uncertain whether TikTok will be banned in the U.S., such a ban would affect brands, retailers and influencers who have grown reliant on the platform to generate sales. Many companies have invested significant time and resources in creating TikTok content to engage with a younger demographic.

A potential TikTok ban could also significantly alter the landscape of influencer marketing, as numerous brands currently collaborate with popular creators to endorse their products. By 2022, the influencer marketing industry had hit $16.4 billion, and according to reports, 67% of brands and retailers intend to increase their influencer marketing expenditure in 2023, with 23% planning to allocate more than 40% of their overall marketing budget to influencer marketing.

See also: What a Ban on TikTok in the US Could Mean for Brands and Retailers

Lemon8’s Current Reach

Since its launch in Japan, Lemon8 has expanded its operations to other Asian countries, such as Indonesia, Thailand, Malaysia and Vietnam. While the majority of the app’s active users are located in that region, Seema Shah, the head of investor research and director of research at market research firm Sensor Tower, notes in a Vogue Business report that 34% of Lemon8’s downloads have originated from the United States since its release in February. The average age of Lemon8’s users, according to Sensor Tower, falls between 28 and 30.

Currently, ByteDance is said to provide compensation to content creators for their posts on the platform, which appears to have made it difficult to ascertain the actual perception of Lemon8 by its regular users. Specifically, the use of #Lemon8Partner by some users has led to rumors that Lemon8 may be paying creators and micro-influencers to post content on the platform.

In contrast to Instagram and TikTok, which did not depend on paid influencer partnerships during their initial launch, Lemon8 appears to be focusing on creating a commerce and influence-centered environment right from the beginning.

Currently, Lemon8 does not offer the option to directly tag items or include shoppable links in posts. However, content creators are finding alternative methods to generate income from their content.

For example, Instagram influencer Beth Bartram, who has garnered almost 350,000 followers to date, told Vogue Business she uses Lemon8 to share fashion inspiration, outfit ideas, fitness tips and style recommendations. Bartram reveals that she earns revenue from her posts by partnering with shopping platform LTK, which enables influencers to upload their photos and videos and link to products through a bio link. Additionally, Bartram monetizes her content by incorporating both new and recycled content from other social media platforms.

That said, despite U.S. Federal Trade Commission (FTC) guidelines that mandate all advertisements to be disclosed on platforms such as Instagram and Facebook, it appears that users on Lemon8 are promoting products without disclosing whether they are sponsored.

Regardless of the app’s growing use, ongoing scrutiny by Congress of TikTok and ByteDance may deter some creators from embracing Lemon8 as a viable alternative to TikTok.

Read more: TikTok Ban Threat Scares Off US Merchants