Future of Commerce study unlocks vast opportunities through TikTok’s “Entertainment First, Commerce Second”
TikTok, a leading destination for short-form mobile video, with the management consultancy services firm Boston Consulting Group, conducted an exclusive study to understand a new commerce opportunity, ‘Shoppertainment,’ and help marketers benefit from TikTok’s influence on modern retail.
The approach to Shoppertainment is entertainment-first, commerce-second. Merchants need to observe five (5) entertainment attributes according to the study entitled Future of Commerce (FOC)
- Focus on video-first. Embrace a video-first approach defined by short content that maintains attention
- Don’t force decision-making. Ensure content is associated with interests and hobbies that align with your consumer, and don’t seek to force decision-making.
- Be authentic. Create an authentic brand sentiment, with credible reviews and open and engaging community conversations, and lead with authentic videos that inspire within a community.
- Recommend the trends. Include the voices of credible and trusted community experts, and facilitate extended conversations between friends and users. Build this into a strong and trusted culture and following.
More and more brands are utilizing the platform to connect and grow their communities. Trends like #TikTokMadeMeBuyIt or more specifically #Budolfinds in the Philippines, gave more brands and businesses the opportunity to expand to the digital space, converting more consumers into customers.
Connecting with consumers
The study reveals that the retail industry is highly saturated and competitive, especially with how shopping has evolved into various forms, resulting in countless brands fighting for consumers’ attention. Consequently, consumers are losing interest in brands as overly exaggerated, picture-perfect, and polished advertisements are failing to speak to them. This is true for 90 percent of digital ads that consumers skip regularly, according to the study.
“Consumers today now consider and seek elements of fun and emotional connection with brands when shopping, regardless of whether they are actively looking for a product or casually browsing,” says Paolo David, TikTok Philippines Head of Brand Partnership.
David explained that the desire for fun and entertainment, credibility, genuineness, inspirations, indulgences, and trendy things make way for the newest opportunity of integrating all of these into one marketing strategy, Shoppertainment, an entertainment first, commerce second approach, something which is inherent in TikTok’s DNA.
The FOC study projects that the Shoppertainment opportunity in Asia Pacific will expand to a market value of over USD 1 Trillion by 2025, more than half or 55 percent of which will be contributed by the Fashion, Beauty, Food & Beverage, and Electronics sectors.
Need for authenticity
Following the Shoppertainment trend, brands must adjust accordingly by taking their marketing strategies to the next level to meet the needs of consumers. David says that genuine storytelling and educational value are powerful tools brands can utilize, especially through a video-first approach that captures and maintains consumers’ attention.
“Content that is authentic, credible, aligns with shoppers’ interests and passions, and does not force decision-making, establishes and reinforces the trust and relationship with consumers. When it comes to the commerce side, two deal makers for consumers are having clear information and the ability to purchase straight away,” he explains.
Shoppertainment is an opportunity for brands to relate with potential customers on an emotional level by driving content that fuels excitement, trust, knowledge and passion. Appealing to emotions through commerce that is rooted in entertainment ignites inspiration that converts customers to new products and brands.
“This provides a pathway to address changing consumer appetites and gives marketers a chance to unlock future customer journeys,” David says.
Seizing the opportunity
Brands and marketers can seize this opportunity through TikTok to build relationships with their consumers. According to the FOC study, 73% of TikTok users say they feel deeper connections to brands on TikTok than on other sites and apps they use. Moreover, 87% of users say video content on TikTok influenced their recent purchases.
David says this is possible because TikTok has built an inviting and entertaining space that is fueled by trusted brand and product recommendations.
“Brands can reignite purchasing passions by putting entertainment at the foremost. TikTok can support brands and advertisers in their quest to reach and engage consumers as the platform has integrated solutions built for entertainment and authentic interactions, enabling impactful commerce results,” he explains.
TikTok and Shoppertainment have made connecting with consumers easier and more accessible. By securing the emotional connection consumers crave for and developing entertaining content on TikTok, brands have the potential to convert consumers into customers.
“With the continuous development of innovative technologies, the potential for brands to integrate entertainment into their marketing strategies are endless,” said David. “The future of commerce is Shoppertainment, and it is on its way to redefining the formula of brand success.”
To view the full findings of the report, visit http://www.tiktokshoppertainment.com/
