The shopper journey got way more entertaining.
TikTok’s magnetism has attracted 1.5 billion monthly average users. That massive crowd is impossible for retailers and brands to ignore.
Why is TikTok so important to retail?
Let’s take a peek at its phenomenal flywheel to see why the global retail ecosystem is so smitten.
TikTok’s model connects creators (including celebrities, influencers and experts), content (snackable, addictive short-form video) and community (New York Knicks fans, new moms, beauty enthusiasts, etc.) into an integrated model.
The evolution is remarkable
20 years ago, we’d see a commercial on TV and hope we remember to buy the brand the next time we go to the store. However, it took an average of 8 (!) interactions with a brand for us to actually buy the brand whose ad we just watched.
Today we can see a TikTok video we like, want the product featured in it and pay for it – all within the app.
The marketing funnel got squished
Vibrant, enticing product discovery is in the palm of your hand. It could take seconds instead of 8 brand interactions for a consumer to buy because the path to purchase is minimized.
Retailers and brands can speed up the sale by establishing a presence where consumers already willingly spend lots of time. Relaxing. With their guards down. Content that resonates can builds trust within targeted communities. Shoppable content merges merchandise and media so customers don’t need to go to another website to buy.
Retail players mosey on over to TikTok (and emulate it)
Best Buy, Crocs, Ulta and PepsiCo are among companies that sell on TikTok Shop. Sephora announced live product drops on the platform and livestreaming events.
Companies aren’t just selling there; they’re absorbing TikTok’s takeaways for modern marketing. For instance, Instacart’s new Immersive Feed reflects how consumers have come to expect brief, inspiring, mobile-first video marketing.
Let’s end with a handy summary of how TikTok has modernized retail marketing.
TikTok just announced it’s adding AI to power product discovery and one-click checkout for a smooth customer experience.
How else is TikTok disrupting retail?
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Sources:
Best Buy, Modern Retail, Retail Dive, RetailWire, Sephora
Related:
TikTok’s Meteoric Growth
Retail Marketing Gets Super Social
Social Shopping Evolution
Social Commerce is the Future of Retail