In January 2024, TikTok set a goal to grow the size of its TikTok Shop business tenfold to $17.5 billion by the end of the year. To achieve this, the company had to rely on its eager customers, whose spending power generated $11.09 billion in gross merchandise volume (GMV) in 2023. Many predicted that beauty and personal care purchases would contribute significantly towards TikTok's desired 2024 market size—after recording the highest GMV among all categories in the prior year—generating $2.49 billion and accounting for 22.5% of TikTok Shops total sales.
However, as the months of 2024 played out (bringing with them continued economic uncertainty), the lipstick effect began to lose its luster, and consumers started to cut back on impulsive, trend-based purchases. The #NoBuyList2024 (which holds 39.4M views at the time of writing) surfaced on TikTok, showcasing lists content creators had made encouraging "loud budgeting"—saying no to purchases they couldn't afford, didn't wish to spend their money on, or didn't truly need.
Instead of allowing this spending change to dent the progression of TikTok Shop and its affiliated brands' business ambitions, the social giant sought to investigate ways to adapt its offerings to suit new consumer habits. In response, the recently revealed What's Next 2024: Shopping Trend Report provides a breakdown of what's important to e-commerce shoppers today. The study highlights trend signals from TikTok's large community, using data, brand examples, and case studies to help marketers understand a new age of shopping.
"We're witnessing an era of profound transformation in how people engage with brands and approach their purchasing decisions," says Sofia Hernandez, Global Head of Business Marketing for TikTok. "The shift from consumption of fleeting viral trends to more deliberate and informed buying choices is reshaping the [e-commerce] landscape. Today's shoppers are motivated by joy, curiosity, and a desire for long-term value, prioritizing genuine brand relationships over superficial interactions."
Bending Emotions
As spending becomes less spontaneous, consumers are seeking out brands that "bend their yearning for joy into shopping that offers relief from an overwhelming sales market." But how can this be executed?
Brandship: According to the report, TikTok users are 5.2x more likely to say TikTok is the best platform to connect with a brand compared to other social media platforms. As a result, businesses are now expected to go beyond just the offering and value of a product and instead build a friendship-like narrative with consumers on social media through shared values.
"Through an always engaged strategy, brands can signal to audiences what makes them unique," the report reads. An example is made of Kiehl's, which highlights the benefits of its reusable packaging through its TikTok videos, allowing the brand to connect with consumers who share like-minded sustainability values while showing value for money at a time when dollars are having to stretch that little bit further.
Glimmers of Hope: Consumers are still turning to shopping as a mood booster despite less frequent spending. As stated in the study, 42% of consumers agree that TikTok positively shifts their mindset thanks to its community's lighthearted and hopeful approach when reality is turbulent. Brands can engage in this desire for positivity through trends such as #Hopecore (1.3B posts), which sees users share positive, hopeful messages, aesthetics, and human-interest stories to uplift others. TikTok encourages brands to get involved in the trend through influencer and ambassador partnerships, highlighting these glimmers of hope from a brand perspective, such as by discussing the business's charitable achievements.
Newstalgia: The report suggests that blending nostalgia with new context has the ability to bridge generations, bringing back old trends to newer audiences, which in turn drives sales. In a fast-paced digital landscape, consumers of all ages are said to be yearning for nostalgia and familiarity in order to "build a digiscape grounded in belonging," as over one in two users state they follow brands on TikTok for reasons related to community connection. A notable example is Jo Malone's recent Paddington Bear fragrance campaign, which ties in nostalgia for older audiences while presenting something current for younger generations as the film franchise prepares to release its next installment in the fall.
Bending Communities
Since WHO declared loneliness as a "global health concern," online communities have become a new form of self-care, bending bridges of belonging to soothe such feelings. The report states that 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 inform them in their higher spending decisions. The report affirms that consumers are tired of low-quality products "in an oversaturated market full of fads and dupes." The conscious consumer is growing, and shoppers are trading viral for value. Backed up by personal experience, creators on TikTok are sharing trusted brands for more cost-friendly yet effective products. As it is outlined that 45% of TikTok users continue to search for product information in the app once they discover something new, TikTok for Business recommends turning loyal customers into TikTok affiliates, allowing them to earn commission by sharing their genuine product experiences, a win-win for both parties during economic precariousness.
Community Convergence: Communities are growing more curious, and brands should be closely following behind. The report mentions that consumers are breaking free from traditional demographics and embracing multifaceted identities within vibrant communities. When these communities begin to intertwine, hybrid cultures are created. TikTok encourages brands to launch alongside pre-established voices, such as a content creator within the business's target audience, to ensure organic credibility during product launches. Brands are beginning to follow suit, collaborating across industries and sparking dynamic partnerships, as evidenced by Gordon and HollyAnna Ramsey's latest collaboration with NYX Professional Makeup.
Shopping Across Borders: As communities expand, TikTok users are becoming intrigued by what's trending in other regions, unlocking cross-market potential. TikTok Shop's ease of international shopping has caught global interest from consumers, leading to the TikTok community sharing what's trending in other countries based on their travels, heritage, and individual experiences. As a result, 74% of TikTok users feel that the app allows them to connect with people from different backgrounds and cultures around the world. The recent rise in interest in Korean sunscreens shows the desire to understand and be involved in international trends. According to Spate, the search term "Korean sunscreen" receives 8.3 million weekly views on US TikTok.
Bending Relationships
As a sense of community continues to be a focal point on TikTok, marketers are bending one-way brand-to-consumer relationships with heightened collaboration and transparency.
Comments to Concept: The study reveals that 68% of TikTok users believe brands should use the comment section to better understand their customers and build a further sense of community. TikTok for Business suggests that brands invite customers into the development process of their products, utilizing reviews posted on the app to adapt real-time feedback into new product formulations and consumer engagement touch points. The Ordinary is highlighted in the report and commended for its videos revealing a new formulation for its popular Hyaluronic Acid product, which is transparently attributed to consumer feedback.
AI Eases the Everyday: With 57% of TikTok users interested in AI, TikTok for Business promotes brands to actively experiment with the technology to resolve consumers' decision fatigue in the shopping process. The report explains that AI's untapped potential is often met with uncertainty due to a lack of familiarity, yet a new wave of investigation is steadily overturning this reluctance. Brands can learn more about AI through TikTok's Symphony Assistant, an AI tool that creates copy, identifies trends, and leverages data-powered insights to unlock new marketing opportunities.
Looking for Advice in Finance: As consumers become more transparent about financial hardships, money talk remains taboo in many spaces, but not on TikTok. The report states that 42% of TikTok users who watched financial content made a purchase or financial action. This is due to TikTok's sense of comfort and reliability for users, going beyond financial education to create a sense of shared experience, as evidenced by the comical "girl math" trend. This social media craze sees users, particularly women and girls, humorously trying to justify or rationalize their spending habits and financial decisions using playful and sometimes illogical reasoning.
Going Forward
As the industry navigates the challenges of economic turbulence this year has brought, brands' success on TikTok Shop will depend on their ability to adapt to shifting consumer behaviors and preferences. The era of impulsive, trend-driven purchases is no longer, giving way to deliberate shopping choices driven by the desire for genuine value and community enrichment.
The strategies outlined in the What's Next 2024: Shopping Trend Report highlight the evolution of consumer demands and the desire for brandship, transparency, and customer inclusion. Amid financial uncertainty, brands can succeed on TikTok Shop by creating authentic, community-driven content that resonates with consumers' values, fosters genuine connections, and goes beyond simply selling a product.
