Empowering brands with TikTok Shop: A new era in consumer connection

17-Jul-2024 - Last updated on 17-Jul-2024 at 05:25 GMT

"Research has found that seeing a brand on TikTok Shop boosts feelings of authenticity and trendiness among shoppers," said Jacqueline Flam, SVP of Retail at NIQ. © nensuria Getty Images

A recent NIQ report explores the meteoric rise of TikTok Shop's popularity with beauty and other retail consumers, its impact on e-commerce strategies, and how brands can leverage the platform to improve engagement, awareness, and product sales.

As the digital retail landscape shifts in response to technological advancements, the cosmetics and personal care industries are at the forefront of embracing innovative platforms to connect with consumers. One such platform, TikTok Shop, has influenced how brands establish relationships with their audience and offers impressive opportunities for brand growth and engagement.

We spoke to Jacqueline Flam, SVP of Retail at NIQ, for her insights from the consumer intelligence company's recent report, "The Power of Commerce on TikTok," and how the report's findings can impact brand expansion strategies for cosmetics and personal care product industry stakeholders.

The rise of TikTok Shop in the retail space

With over 1 billion users, TikTok has become a cultural phenomenon, driving trends and influencing consumer behavior. This popularity has paved the way for TikTok Shop, an integrated e-commerce solution within the platform that allows users to discover and purchase products seamlessly.

Flam highlighted the impact of this new retail avenue and explained that "today's consumers have more choices than ever before, and brands are in constant competition for their consideration, traffic, and loyalty." Therefore, she shared, "to truly connect with consumers, brands must meet them where they are" and "with over 1 billion users, TikTok is a powerful platform for building these vital connections."

Breaking down traditional retail barriers

TikTok Shop is not just a marketplace; it is a dynamic environment that is breaking down traditional shopping barriers, making it easier for consumers to engage with brands and purchase products.

"Big and small brands alike are already leveraging TikTok Shop to launch exclusive items that sell out within hours," Flam noted. "TikTok Shop offers a unique blend of discoverability, convenience, and entertainment, which helps build strong and authentic customer relationships."

One of the most significant advantages of TikTok Shop is its accessibility to brands of all sizes. This inclusivity levels the playing field, allowing smaller brands to compete with established names by leveraging the platform's vast reach and engaging format.

"TikTok Shop not only drives sales but also enhances brand perception by connecting with culturally relevant movements," said Flam. "Research has found that seeing a brand on TikTok Shop boosts feelings of authenticity and trendiness among shoppers."

TikTok's growing influence in health & beauty e-commerce

The influence of TikTok Shop in the health and beauty sector is notable. As detailed in the report, "according to NIQ's exclusive market data, TikTok is ranked the #9 e-commerce retailer for Health and Beauty."

This ranking underscored the platform's growing significance and ability to drive substantial traffic and sales within this competitive market.

As an example of TikTok Shop's potential for beauty brands, NIQ's report examined a case study of Dieux Skin. An emerging skin care brand that launched on the platform in Q4 of 2023, Dieux Skin has effectively utilized TikTok Shop to gain substantial traction and drive impressive sales.

In addition to a curated assortment of products, Dieux Skin focused on promoting a new product, Air Angel, which garnered millions of views. The report detailed how, by leveraging the TikTok Shop Cyber Week Promotion, the brand generated $2.5 million in revenue from TikTok Shop alone.

The report stated that Dieux Skin's strategy relied on organic traffic from the brand's account (@DieuxSkin) and co-founder Charlotte Palermino's account (@CharlotteParler), which achieved over 10 million views. As a result, the brand saw a 19.11% shop purchase rate and 60,000 units sold to 40,000 shoppers.

In the NIQ report, Charlotte Palermino, CEO and Co-Founder of Dieux Skin, highlighted the platform's impact and explained that "we see people buying through TikTok Shop, yes, and we've seen organic traffic — people are going to dieuxskin.com and going to research the product a little bit more and checking out our store — there's been this amazing halo effect."

Embracing the future of retail

Adaptability is key in the beauty retail space today, and brands that are quick to establish a presence on innovative platforms like TikTok Shop are better positioned to thrive. "In this evolving retail landscape, brands must be ready to embrace new channels like TikTok Shop," Flam concluded. "As the platform continues to grow, it offers immense opportunities for brands to connect with consumers, drive sales, and build long-term loyalty."