PepsiCo finds growth through TikTok Shop optimization

Since its TikTok Shop launch in July 2023, PepsiCo achieved over 600% GMV growth in the first two quarters of 2023

TikTok Shop Philippines continues to showcase its transformative impact on the digital commerce landscape, redefining the shopping experience through innovative “Shoppertainment” strategies.

Since its local launch in 2022, TikTok Shop has significantly impacted businesses of all sizes, fostering brand discovery and sales through engaging content and a vibrant community.

Discovery and Increased Engagement

The platform’s pivotal approach has ignited a rising trend among users leading to increased discovery, searches, and immediate purchases. To illustrate TikTok’s significant influence on consumer behavior, 67% of users reported that TikTok has helped them discover new brands or products, while 54% have made purchases inspired by content they saw on TikTok more than any other social media platform.

“Through the fusion of entertainment and commerce, TikTok Shop has redefined the shopping experience, empowering businesses to connect with consumers in a meaningful way,” said Jonah Ople, Cluster Lead for Fashion Category, TikTok Shop. “Our unique ‘Shoppertainment’ approach has fundamentally changed how brands and consumers interact, driving unparalleled engagement and sales. We remain committed to driving further growth and innovation in the ecommerce space.”

Branding and Exposure Boost

The introduction of TikTok Shop Mall in November 2023 further enhanced brand trust and visibility. This feature offers a curated selection of certified stores to ensure users have access to authentic and quality products, simplifying the shopping process while integrating the fun and engagement of social media.

This focus on authenticity has led to 87% of users preferring to buy from certified stores within the Mall, highlighting the platform’s commitment to quality and trust. This stems from findings that 81% of users are willing to pay a higher price in exchange for peace of mind to buy from a certified store.

PepsiCo’s Phenomenal Growth: A TikTok Shop Success Story

Amidst TikTok Shop’s success stories, PepsiCo stands out, showcasing the platform’s immense potential for brand growth. As a global leader in convenient foods and beverages, manufacturing in more than 200 countries and territories, PepsiCo boasts well-known brands such as Pepsi, Mountain Dew, Gatorade, Lipton, Lay’s, Doritos, Cheetos, and Quaker Oats.

Officially launching its TikTok Shop in July 2023, PepsiCo became an F&B industry pioneer in the Philippines, achieving over 600% GMV growth in the first two quarters of 2023 and becoming a top branded seller in major sales campaigns. The multi-brand store setup, featuring hero brands like Pepsi, Mountain Dew, Sting, Quaker, and Frito-Lay, exemplifies the power of cross- and upselling, underlining PepsiCo’s strategic versatility in assortment strategy.

“We are thrilled with the success we’ve achieved with TikTok Shop, which early on, is showing potential to be an exceptional platform for connecting our brands with the right target audience in a dynamic and engaging way,” said Adriann Eusebio, Total Foods Commercial Director-PH, and Total Foods Marketing Director-SEA and NA, PepsiCo. The +600% GMV growth we’ve seen is a testament to deep consumer understanding and innovative e-commerce strategies PepsiCo continues to build with key partners like TikTok Shop.”

Brand optimization strategies

PepsiCo’s strategic use of TikTok Shop’s ACE framework (Assortment, Content and Empowerment) highlights its holistic approach to optimizing touchpoints for seller growth. PepsiCo optimized its product listings and store design to reduce out-of-stock scenarios and present an official trust-building storefront. The introduction of seasonal bundles, especially during high-demand periods like Christmas, further exemplified its commitment to meeting consumer needs.

For content, the brand implemented a targeted approach that engaged both general community affiliates and top-tier affiliates, including Multi-Channel Network (MCN) vertical accounts. Regular multi hour livestreams and consistent posting of short videos outside the livestream schedule were crucial in building viewership and driving sales.

PepsiCo maintained high store and product ratings, ensured timely deliveries, and responded promptly to customer queries, reinforcing trust and encouraging repeat purchases. Active participation in platform campaigns and co-branded efforts like the Doritos + Xbox promotional packs further amplified the brand’s reach and appeal.

For Ople, PepsiCo’s success story serves as a blueprint for other brands aiming to capitalize on the burgeoning opportunities within TikTok Shop’s ecosystem.

“TikTok Shop is more than a platform; it’s a revolution in the way we think about shopping and entertainment,” said Ople. “We extend our heartfelt thanks to our community and partners like PepsiCo, whose remarkable growth validates our vision of integrating social commerce into everyday life, making shopping more enjoyable and accessible. The future is bright, and together, we will continue to redefine the e-commerce landscape.”