With TikTok facing potential US ban uncertainties, the platform's successful shopping integration has created both challenges and opportunities in the social commerce landscape.
"TikTok really showed how social commerce can work in a new way in the US," our analyst Sky Canaves said on a recent episode of “Behind the Numbers: Reimagining Retail.”
TikTok Shop's potential disappearance would impact brands differently based on their size and reliance on the platform.
Smaller brands like Guru Nanda and Halara that went "all in" on TikTok Shop would be most vulnerable, while larger retailers like PacSun and Tarte Cosmetics would face less disruption due to their diversified sales channels.
“[TikTok] has this really unique blend of technology, of media, of community that really has been kind of the way that it's been able to drive sales, and…that would be really difficult for any platform to replicate” according to analyst Jasmine Enberg.
What makes TikTok Shop different from other platforms:
A TikTok Shop shutdown could significantly impact live shopping's momentum in the US. While other platforms have struggled with live commerce, TikTok found success through:
With the TikTok ban in limbo, brands must take a measured approach to TikTok Shop: maintain a presence, but watch developments closely. They also need to make sure TikTok users know where to find them and are connected with them across other platforms by emphasizing other social channels and partnering with cross-platform creators.
While there is no “next TikTok,” brands should monitor user migration problems and consider emerging alternatives like Whatnot and ShopMy.
"Where the social users and buyers end up will ultimately surprise us," Canaves noted, emphasizing the importance of staying flexible in strategy.
Listen to the full podcast episode for more insights on TikTok Shop's impact on social commerce.
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