Great business strategy and marketing will challenge brands to be present across all channels and modalities, spanning display advertising, social media, connected TV, email/SMS and AR/VR as it becomes more mainstream. Leveraging every one of these strategies in your mix is not the answer, but neither is using just one of them.
So what’s the prognosis for TikTok Shop?
It may take time, but it will likely be highly successful in the U.S. market due to its growth and appeal to a younger demographic. From 2021 to 2027, the number of TikTok Shop buyers will increase by more than 350%, while Instagram buyers will increase by 145%, and the Facebook buyer base will expand by 122%.
In addition to the large number of Gen Z users already taking advantage of TikTok’s features, there are other factors to consider. Younger shoppers place value on convenience and the ability to make purchases without needing to visit multiple platforms. The appeal also depends on the type of products being offered and their prices, with trendy, lower-cost items typically requiring less consideration before purchasing.
Younger shoppers also have different views about data privacy. While they are significantly concerned about revealing their personal information online, they’re much more relaxed about being tracked by websites or apps. Finally, despite recent rhetoric, the U.S. government is reluctant to restrict trade and commerce by banning platforms or other technologies without near airtight evidence that they pose a national security threat.
Social commerce is a rapidly maturing means for brands and retailers to market their products. TikTok has distinct advantages over other platforms when targeting Gen Z. Time will tell if the social platform continues its dramatic growth trajectory or succumbs to competitors and/or government pressure.
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