TikTok Shop is entering its second holiday season, when it will rely on big brands and livestream commerce to maintain the momentum it's gathered since launching a little over a year ago.
- Ahead of Black Friday, TikTok Shop will host a “Brand Palooza” with offers and products from brands like Benefit Cosmetics, HEYDUDE, and Liquid I.V., as well as shoppable “super livestreams” with yet-to-be-named celebrities.
- On Black Friday, TikTok Shop will host exclusive product launches from brands like Mavwicks Fragrances and period care brand August, per Retail Brew.
- Other popular brands like Dyson, Kiehl’s, Fenty Beauty, and Make Up Forever will start selling on TikTok Shop for the first time this month, ramping up their storefronts ahead of the Cyber Five.
Why we care: Though a relatively new entrant, TikTok Shop has secured its place within the US marketplace landscape.
- Over a fifth of US marketplace buyers made a purchase on TikTok Shop in the seven months following its US launch, according to an April 2024 EMARKETER survey.
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Gen Z shoppers are more than twice as likely to have made a TikTok Shop purchase than millennials, nearly three times more likely than Gen X, and about 30 times more likely than baby boomers.
However, as we enter a highly competitive holiday season, TikTok Shop will need to focus on offering special or exclusive deals to grow its share of holiday sales.
- Only 12% of consumers will shop online via social media shops this holiday season, according to a May 2024 survey from Bryj.
- 58% of US TikTok users say coupons or special discounts would entice them to buy from TikTok Shop, according to a March 2024 YouGov survey.
Growth spurt: Since its official US launch in September 2023, the number of monthly shoppers on TikTok Shop has nearly tripled each month, Nico le Bourgeois, head of US operations for TikTok Shop, told Retail Brew.
- Fashion and beauty are top categories on TikTok Shop, per le Bourgeois.
- As of July 2024, the platform’s gross sales have topped $1 billion a month, putting it on track to hit its goal of $17.5 billion in US gross merchandise this year, per The Information.
Online to in-person: TikTok isn’t just inspiring digital purchases—it’s driving physical outcomes as well.
- 96% of TikTok campaigns from retail and dining brands with a physical presence led to a statistically significant lift in in-person visits, according to new data from InMarket and TikTok Marketing Science.
- For the campaigns measured, TikTok performance was 1.2 times higher than the benchmark.
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