"NEW YORK - TikTok has drawn droves of marketers for its ability to turn products of all stripes, from Stanley tumblers to cranberry juice, into viral sensations. 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."
""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 emerged as a major social-commerce channel that can turn diverse products into viral sellers and help quantify video-driven lift. Retailers use Shop data to inform product mix, demand forecasting, and content strategies. The marketplace is increasingly crowded and functions like a standalone retailer with promotional events such as Super Brand Days. As TikTok scales, platform-funded incentives have diminished, creating profitability pressures for brands. Customers on the platform tend to be value-driven, forcing brands to balance promotional value offers against margin and overall profitability amid broader retail challenges like tariffs and weaker discretionary spending.
Read at Retail Dive
Unable to calculate read time
Collection
[
|
...
]