Having over a billion downloads worldwide, there is no denying that Tik Tok (TT) is a powerhouse in the social media industry. While TT may have started out as a trendy social media app, TT has since launched an e-commerce counterpart called Tik Tok Shop (TTS) that disrupted the traditional e-commerce industry with its ‘social e-commerce’ approach.
TTS is integrated seamlessly within the TT app so users can access it without getting redirected or installing another app. TTS is offered in several parts of the world: Malaysia, Thailand, Singapore, Vietnam, Indonesia, the Philippines, United States, and United Kingdom. It quickly gained traction after its launch – with small business owners and major brands embracing the more natural, soft-sell approach. So, what makes TTS so appealing?
SEAMLESS ONLINE SHOPPING
Instead of how traditional e-commerce platforms such as Amazon, eBay, Temu, or AliExpress work, TTS targets consumers through a seamless social media experience.
TT’s algorithm works by showing targeted content based on past user behaviours on the app. For example, if a consumer watches a cat video and interacts with it, the algorithm will assume it as a preference and show more cat related content that may contain featured products.
With Tik Tok Shop’s approach of ‘social e-commerce’, consumers do not need to search the web for products seen on their feed as sellers can link videos directly to a shop page for an easy checkout experience.
This means two things: consumers are going to spend more time on the app watching videos they enjoy which increases the chances of your product getting noticed organically; and consumers are more likely to purchase items on their feed as it is curated to their likes.
'SHOPPERTAINMENT' INFLUENCE ON E- COMMERCE
Tik Tok’s success in combining shopping and social media entertainment seamlessly changed more than just consumer behaviours who enjoyed the ease of a seamless shopping experience and social media all being under one roof.
Other platforms such as Lazada noticed TTS’s winning approach and adapted their apps to include interactive ‘shoppertainment’-like content and features into their traditional platforms, however it was poorly moderated and has since been discontinued.
INTERACTIVE 'SHOPPERTAINMENT' APPROACH
Tik Tok Shop sellers can use the multitude of tools in the app to reach and interact with consumers. Challenges, shoppable tags, augmented reality effects, hashtags, or live shopping are some of the many tools available. Brands that sell makeup or clothes for example may want to leverage on augmented reality for a personalised experience that could lead to higher conversion rates. As ‘shoppertainment’ content can be time consuming to create, planning is vital as the nature of TTS is fast paced and ever evolving.
SENSE OF BELONGING
Interactive ‘shoppertainment’ content allows consumers to easily interact with sellers and former buyers of a product which helps build a sense of connection and trust. This open communication method helps build trust and create a community of sorts.
Sometimes a simple hashtag can make people feel connected too, for example #TikTokMadeMeBuyIt had consumers buying items on TTS and posting content about their purchases and shopping experiences.
Most successful brands build communities around their brand by collaborating with influencers, or even encouraging consumers to generate content related to their brand. Consumer involvement with a brand will make them think of your brand when there are thinking of buying in the future.
TIK TOK SHOP IN INDONESIA
In October 2023, Tik Tok Shop seized operations in Indonesia as the government wanted to protect local businesses as prices on TTS were much lower than the average shop.
In January 2024, Tokopedia (a major Indonesian e-commerce platform) and Tik Tok Shop Indonesia merged under the Tokopedia entity. This merger is expected to have them dominate the social e-commerce industry in Indonesia.
SOCIAL MARKETING & SALES IN ASIA
Melchers supports its partners in many areas of social marketing & sales. Depending on the country, there are various options for establishing a sales channel in the area of social e-commerce.
If you are interested in opportunities with us, contact us at: contact@melchers.de
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