Talking about social media we cannot deny that TikTok is one of the fast-growing apps. And its power cannot be underestimated. According to BBC article, in 2020 TikTok was the most downloaded app. Globally, and counting more than 240 million users in South-East Asia. It has changed the way people consume media online and influenced the way businesses and marketers do marketing.
The amount of attention TikTok has put on digital content allows businesses to use it as an advertising channel. I bet that you might have heard the phrase “Don’t make ads. Make TikTok videos” before as TikTok has features TikTok for business – to give brands a solution deck to create brand awareness and gain more engagement.
Now the next step of TikTok is TikTok Shop where you can do more than just increase the interactivity with your consumers as these features allow you to drive sales.
With one billion active users worldwide on TikTok allows SMBs or even a global brand like Adidas, Volkswagen, PUMA can connect with their target audiences and drive business across the globe. It prioritizes videos from creators that we have never seen before which makes every video have a chance for virality which also benefits marketing as well.
During the pandemic period, TikTok brings the influencers and brands into the spotlight. It created new ways for small and medium-sized businesses (SMBs) to do marketing and adapt themselves to be more creative and innovative in terms of marketing strategies on social media sites.
In Southeast Asia, especially Thailand, Malaysia, and the Philippines TikTok is among the top 10 app downloaded. Most of the businesses in SEA are considered small to medium-sized enterprises (SMEs), and TikTok is an effective marketing channel for them to present their brand or even to increase engagement.
TikTok Shop is not really new, as Douyin (the original Chinese TikTok) has jumped into e-commerce since 2018. At that time they the aim to complete the loop from awareness to conversion, as the trend of social media platforms in China usually provide online shopping functions for their users.
TikTok released a feature “shopping cart” on the platform for brands to drive sales and in order to do this, they have Taobao and Tmall by Alibaba Group as a partner.
To complete the loop from awareness to conversion, Douyin also collaborates with actors and KOLs to gain more engagement and drive sales. The link to buy the product can be found as a shopping bag icon on the influencer or actor’s profile and Product Links call out specific items within a video that allow consumers to immediately make a purchase without having to leave the application.
For other countries, this kind of drive sales feature in TikTok is called “TikTok Shop”. It is a suite of solutions, features, and advertising tools that empowers brands and merchants to increase engagement with their consumers as TikTok aims to support e-commerce content to let the brand and creator drive sales in TikTok video.
On 3 March 2021, TikTok announced the expanded roll-out of their global Shopify partnership to Southeast Asia, including Singapore, Malaysia, Thailand, Indonesia, and Vietnam. The pilot testing TikTok Shopping is among a select group of Shopify merchants in the US, UK, and Canada.
The function of TikTok Shop is to work with online merchants in two different ways.
The first way is TikTok Shopping Direct Integration wherein creators and merchants are able to run an e-commerce business directly on the platform. The consumers can discover all of the products from the creators’ accounts no matter whether via video content or Livestream. With TikTok Shopping Direct Integration every single step from product detail pages to point-of-purchase is powered and performed on TikTok. To get started with TikTok Shopping Direct Integration you can set up your account on the TikTok Seller Center or get in touch with us if you need help from our agency.
The second way is TikTok Shopping Partner Integration. This solution enables creators and merchants to create product catalogs through their own TikTok For Business account and for the consumers they can purchase products within the TikTok app but for the checkout and post-payment such as returns or refunds will happen on the partner app or merchant site.
The influence of TikTok toward digital content and its fast growth is reason enough for the creators, marketers, and businesses not only of small to medium-sized enterprises but of all sizes to jump into TikTok and grab the opportunity to do marketing in a creative way and drive sales at the same time.
A post written by Vongsiri Thitivesa, Digital Marketing Manager Intern at MOST 2414 and student at Srinakharinwirot University.
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