TikTok Shop Surpasses Shein and Sephora in Online Shopping Trends Among US Consumers
TikTok Shop surpasses Shein and Sephora in US online shopping trends. Consumer trends report reveals TikTok's growing influence among American shoppers. TikTok Shop diversifies product offerings, attracting a wide range of consumers.
A recent consumer trends report by Coefficient Capital and The New Consumer’s Dan Frommer delved into Americans’ spending habits and how they impact various brands. The study, based on 11 surveys involving over 3,000 US consumers, highlighted TikTok Shop's significant growth in the online retail landscape.
Despite being a relatively new player in the market, having launched in September 2023, TikTok Shop has quickly gained recognition among American consumers. The report revealed that 80% of surveyed Americans who engage with TikTok monthly are familiar with TikTok Shop, showcasing the retailer's expanding influence.
This surge in popularity has propelled TikTok to surpass established retailers like Sephora, Shein, and Qurate in consumer spending during the third quarter, as outlined in the consumer trends report. While Sephora and Shein are well-known online destinations, particularly among younger demographics like Gen Alpha, Qurate Retail Group, which includes QVC among its brands, also competes in the online retail space.
Sephora, a key player under LVMH, achieved record-breaking sales of US$10 billion in North America in 2023, while Shein reported profits of US$2 billion that year. Despite a 5% revenue decline, Qurate generated US$152 million in operating income during the third quarter. Additionally, a Financial Times report in March indicated that TikTok had amassed $16 billion in sales in the US, with TikTok Shop contributing significantly to the app's revenue for small businesses.
The consumer trends report highlighted that 45% of surveyed Americans have purchased "fashion, clothing, and accessories" from TikTok Shop, with beauty and personal care items following closely at 44%. Users also indicated buying electronics, home goods, food, toys, books, and more from the online platform, showcasing its diverse product offerings.
TikTok has spearheaded the growth of social media shopping apps in the US, with its parent company ByteDance aiming to replicate the success of its Chinese counterpart, Douyin, which drives substantial sales annually through influencer live-streams. However, TikTok faces a potential federal ban in the US, following the passing of the Protecting Americans from Foreign Adversary Controlled Applications Act, which requires ByteDance to divest from TikTok by January 19 or risk a ban.
In response to the looming ban, TikTok has launched a "limited-time offer" promotion, enabling users to earn up to US$350 in TikTok Shop credits by referring new users. Despite the uncertainties surrounding its future in the US, TikTok continues to innovate and engage users through strategic initiatives.
TikTok Shop surpasses Shein and Sephora in US online shopping trends
Consumer trends report reveals TikTok's growing influence among American shoppers
TikTok Shop diversifies product offerings, attracting a wide range of consumers
Source: SCMP