In January 2024, TikTok set a goal to grow the size of its TikTok Shops business tenfold to $17.5 billion by the end of the year. To achieve this, the company relied on its eager customers, whose purchasing power generated $11.09 billion in gross merchandise volume (GMV) in 2023. Many predicted that beauty and personal care purchases would contribute significantly to TikTok’s desired market size in 2024 – after the company recorded the highest GMV of any category the previous year – generating $2.49 billion and accounting for 22.5% of TikTok Shops’ total revenue.
But as 2024 progressed (which continued to bring economic uncertainty), the lipstick effect began to lose its shine and consumers began to cut back on impulsive, trend-based purchases. The #NoBuyList2024 (which had 39.4 million views at the time of writing) popped up on TikTok, showcasing lists created by content creators to encourage “budgeting out loud” – saying no to purchases they couldn’t afford, didn’t want to spend their money on, or didn’t really need.
Rather than allowing this change in spending to slow down the business ambitions of TikTok Shop and its affiliated brands, the social media giant has looked for ways to adapt its offering to new consumer habits. In response, the recently released What’s Next 2024: Shopping Trend Report offers a breakdown of what matters to e-commerce shoppers today. The study highlights trend signals from the vast TikTok community and uses data, brand examples and case studies to help marketers understand a new age of shopping.
“We are living through an era of profound change in the way people interact with brands and make their purchasing decisions,” says Sofia Hernandez, Global Head of Business Marketing at TikTok. “The shift from consuming fleeting viral trends to making more conscious and informed purchasing decisions is changing the (e-commerce) landscape. Today’s shoppers are motivated by joy, curiosity and a desire for long-term value, and value genuine brand relationships over superficial interactions.”
Bending emotions
As spending becomes less spontaneous, consumers are looking for brands that “transform their desire for joy into a shopping experience that provides them with relief from a congested retail market.” But how can this be achieved?
Brand: According to the report, TikTok users are 5.2 times more likely to say TikTok is the best platform to engage with a brand than other social media platforms. As a result, companies are now expected to go beyond simply offering a product and its value and instead build a friendship-like connection with consumers on social media based on shared values.
“By adopting an ever-engaging strategy, brands can signal to their audiences what makes them unique,” the report says. One example is Kiehl’s, which highlights the benefits of its reusable packaging in its TikTok videos. This allows the brand to connect with consumers who share similar sustainability values while offering good value for money – at a time when money is increasingly tight.
Glimmer of hope: Despite spending less, consumers still resort to shopping to lift their spirits. As stated in the study, 42% of consumers agree that TikTok positively shifts their mindset during turbulent times thanks to its community’s lighthearted and hopeful approach. Brands can tap into this desire for positivity through trends like #Hopecore (1.3 billion posts), where users share positive, hopeful messages, aesthetics, and human stories to uplift others. TikTok encourages brands to get involved in the trend through influencer and ambassador partnerships and highlight these glimmers of hope from a brand perspective, for example by discussing the company’s charitable achievements.
Neustalgia: The report suggests that blending nostalgia with new context can bridge generations and bring old trends to new audiences, which in turn increases sales. In a fast-moving digital landscape, consumers of all ages are reportedly craving nostalgia and familiarity to “build a digital world based on belonging,” with more than one in two users saying they follow brands on TikTok for reasons related to community connection. One notable example is Jo Malone’s recent Paddington Bear fragrance campaign, which evokes nostalgia for older audiences while presenting something current for younger generations as the film series prepares to release its next installment in the fall.
Bending communities
Since the WHO declared loneliness a “global health problem,” online communities have become a new form of self-care, building bridges of belonging to alleviate such feelings. The report says TikTok users are four times more likely to say TikTok is the best social platform for building a sense of community than other apps.
Buy it for life: Shoppers are turning to TikTok communities to help inform their purchasing decisions. The report confirms that consumers are tired of low-quality products “in an oversaturated market full of fads and scams.” The conscious consumer is growing and shoppers are trading virality for value. Backed by personal experience, creators on TikTok are sharing trusted brands with lower-cost, yet more effective products. With 45% of TikTok users continuing to search for product information on the app when they discover something new, TikTok for Business recommends converting loyal customers into TikTok Partners so they can earn commissions by sharing their real product experiences—a win-win for both sides in economically precarious times.
Community convergence: Communities are becoming more curious and brands should adhere to this. The report mentions that consumers are breaking away from traditional demographics and adopting layered identities within vibrant communities. As these communities begin to intertwine, hybrid cultures emerge. TikTok encourages brands to launch alongside already established voices, such as a content creator within the company’s target audience, to ensure organic credibility during product launches. Brands are beginning to follow suit by collaborating across industries and creating dynamic partnerships, as seen in Gordon and HollyAnna Ramsey’s recent collaboration with NYX Professional Makeup.
Shopping across borders: As communities expand, TikTok users become curious about trends in other regions, unlocking cross-market potential. The ease of shopping internationally through TikTok Shop has sparked global interest among consumers, leading the TikTok community to share trends in other countries based on their travels, backgrounds, and individual experiences. As a result, 74% of TikTok users feel the app allows them to connect with people of different backgrounds and cultures around the world. The recent increase in interest in Korean sunscreens demonstrates a desire to understand and participate in international trends. According to Spate, the search term “Korean sunscreen” on TikTok receives 8.3 million views weekly in the U.S.
Bending relationships
As TikTok continues to focus on a sense of community, marketers are changing the one-way relationship between brand and consumer through increased collaboration and transparency.
Comments on the concept: The study shows that 68% of TikTok users believe brands should use the comments section to better understand their customers and build a stronger sense of community. TikTok for Business suggests that brands involve customers in the development process of their products and use reviews published on the app to translate real-time feedback into new product formulations and customer engagement touchpoints. The Ordinary is highlighted in the report and praised for its videos introducing a new formulation for its popular hyaluronic acid product that is transparently based on customer feedback.
AI makes everyday life easier: 57% of TikTok users are interested in AI. TikTok for Business encourages brands to actively experiment with the technology to eliminate consumer decision fatigue when shopping. The report explains that AI’s untapped potential is often met with uncertainty due to a lack of familiarity, but a new wave of exploration is steadily overcoming this hesitancy. Brands can learn more about AI through TikTok’s Symphony Assistant, an AI tool that creates copy, identifies trends, and uses data-driven insights to unlock new marketing opportunities.
You are looking for advice in the financial sector: While consumers are becoming more open about their financial struggles, money remains a taboo in many areas, but not on TikTok. The report says that 42% of TikTok users who viewed financial content made a purchase or financial action. This is because TikTok makes its users feel safe and relatable, going beyond financial education to create a sense of shared experience, as demonstrated by the comedic ‘girl math’ trend. This social media trend sees users, particularly women and girls, humorously attempt to justify or rationalize their spending habits and financial decisions using playful and sometimes illogical arguments.
outlook
As the industry navigates the challenges of this year’s economic turmoil, brands’ success on TikTok Shop will depend on their ability to adapt to changing consumer behaviors and preferences. The era of impulsive, trend-driven purchases is over, giving way to conscious purchasing decisions driven by the desire for real value and community enrichment.
The strategies outlined in the What’s Next 2024: Shopping Trend Report highlight evolving consumer demands and the desire for brand leadership, transparency, and customer engagement. In times of financial uncertainty, brands can succeed on TikTok Shop by creating authentic, community-driven content that resonates with consumer values, fosters real connections, and goes beyond simply selling a product.
