"Since the social platform launched its Shop e-commerce marketplace in the U.S. a little over two years ago, brands have gotten better at quantifying just how much video crazes are translating into sales. TikTok Shop's stature is growing enough to influence how retailers think about product mix, demand forecasting and content strategy, according to speakers at the National Retail Federation's Big Show."
"At the same time, Shop has gotten more crowded and competitive. It acts as a "bonafide retailer," one NRF speaker said, hosting its own Prime Day-like deals bonanzas called Super Brand Days. Shop is robust enough at this point that TikTok no longer offers brands some of the incentives it once did to use the feature. A fresh level of maturity comes as the retail industry is beset by challenges related to tariffs and pullbacks in discretionary spending."
""Our main operational challenge is around profitability," said Jenna Manula Linares, vice president of digital marketing at Tarte Cosmetics, during the panel. "As their platform has scaled, they started pulling back in what they'd been funding for us. "We also know that the TikTok customer is value-driven," added Linares. "So now we are at this intersection where we're trying to find the balance between how much value [we can] offer a customer while still being conscious of our bottom line.""
TikTok Shop has turned consumer products into viral, high-selling items and enabled brands to better quantify video-driven sales. Since its U.S. launch over two years ago, Shop's growing stature is shaping retailer decisions on product mix, demand forecasting and content strategy. The marketplace has become crowded and competitive, hosting events like Super Brand Days and acting as a bonafide retailer. Brands face operational challenges around profitability as TikTok scales back funding incentives. TikTok customers are described as value-driven, forcing brands to balance promotional value with bottom-line profitability amid tariffs and softer discretionary spending.
Read at Marketing Dive
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