TikTok Shop is doubling down Live Shopping to capture consumers' attention this holiday season. At an event in New York, the popular social network outlined its ambitious plans to boost its e-commerce platform through “super live streams” during Black Friday and Cyber Monday, betting that live shopping will drive its holiday sales.
As published by The Information, TikTok is looking to replicate the success of Douyin, its Chinese version, which has achieved significant revenues for parent ByteDance. Nico Le Bourgeois, head of TikTok Shop's U.S. operations, said the company's efforts have been focused over the past six months on attracting U.S. consumers to the live shopping mode, according to Modern Retail. To achieve this, TikTok has deployed an ecosystem of support for brands and creators, with targeted training, matchmaking events, and affiliate tools to maximize reach and interaction during these dates.
Unlike previous years' promotions, when TikTok Shop incentivized brands with free shipping and deep discounts, it has opted for a more structured and sustained strategy this year. “We are building a complete ecosystem because the start-up is not easy, “ Le Bourgeois noted. This time around, shipments will be co-funded, and TikTok will offer greater visibility on the platform in exchange for discounts funded directly by the brands.
In addition, in its quest to engage a mass audience, the social network has organized events in Los Angeles and New York to foster collaboration between creators and sellers and launched an affiliate app that allows creators to build their audiences and sales. According to Le Bourgeois, brands are willing to fund their own discounts in view of the platform's reach, which currently has 150 million users in the U.S.
While live shopping is still a nascent phenomenon in the U.S. market, the signs of growth are encouraging. For example, Canvas Beauty, the brand of influencer Stormi Steele, managed to sell over $1 million worth of products in a single six-hour stream on TikTok Shop, a milestone for the platform. However, uptake among big brands still faces resistance, partly because of the spontaneous, real-time nature of live streaming, which can present compliance and control challenges for these companies.
Globally, the live shopping phenomenon continues to advance. In China, it is estimated that this modality will reach $703 billion in sales this year, a 25% growth. In the United States, although still in its infancy, TikTok is betting that acceptance will gradually increase as brands and consumers become more familiar with the format.
Despite the regulatory uncertainty surrounding the company, TikTok has shown steady growth in sales volume since the launch of its U.S. store. This year, the company aims to reach $17.5 billion on its e-commerce platform, although market projections still place it considerably below that goal.Kelsie Johnston, head of TikTok Shop's beauty and personal care division, stressed the importance of understanding consumer preferences. “It's not just about offering discounts; we listen to what the customer is asking for, from value packages to miniature products to gifts with purchase,” she said.
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