This article is part of Spotlight China's latest series focusing on Chinese brands going global. Click to go to the topic page to read more about it.

As a new blue ocean of global traffic, TikTok has a very positive community activity, user stickiness, and e-commerce consumption atmosphere, and it also breeds a large number of explosive opportunities. For overseas e-commerce brands, it will become crucial to avoid "involution" and find more innovative and sustainable business strategies and marketing methods. The TikTok talent-carrying model is a "commercial resonance" of "sellers' products explode, talent earns commissions, consumers get benefits, and the platform gets more traffic".

  • Interested e-commerce and consumer "lifestyle" trend are fully displayed

People need to understand the product in advance and see the real thing to reduce the "shopping risk". On the other hand, people are more loyal to their own hobbies and interests. Live live broadcasts of talents make people "seeing is believing". The interaction between live broadcast rooms and open interest communities meet people's hidden needs for social entertainment.

Various communities on TikTok are becoming an integral extension of users' daily lives, from how #cozygamers organize their game accessories to #softgirl showing off their "soft girl" makeup. Users are co-creating rule-based gameplay and displaying recommended products to perfectly combine their online personalities with offline consumer roles. Brands also need to cater to relevant community trends to establish relevance with users in various circles.

Source: TikTok for Business official website

The perfect combination of social attributes and shopping attributes makes TikTok Shop the birthplace of new overseas consumption trends and the incubator of hot styles.

  • Urgent need to release operational pressure and focus on polishing products

Storage, pricing, promotion and drainage, talent delivery, logistics, or after-sales service, settlement, etc. These relatively cumbersome links can be handed over to the platform or service provider for professional operation. Through the platform buyers or service providers, we can keep abreast of the user's customer complaint information and make timely adjustments, adjust the products on the shelves according to market feedback, accurately push money, and speed up sales. TikTok's dual-drive model of "shelf mall + content planting" helps sellers save operating costs and focus more on polishing products. The innate flow advantage of the platform and the explosive business environment created for the merchants, the benign mechanism gives the merchants a good sales guarantee.

  • 'American store' fully closed-loop hosting, quick payment

TikTok US e-commerce semi-closed loop (little yellow car) means that consumers browse products on TikTok, and then purchase and settle in Shopify (little yellow car places an order and jumps to the Shopify background). After the small yellow car in the United States issues the order, the independent station will undertake it, and the merchant will deliver the goods by itself. This kind of e-commerce link requires cross-platform operation, and there is no complete closed loop. The fully closed loop means that all e-commerce processes are completed within TikTok. This is what everyone calls TikTok's American store. In the fully closed loop, users can directly complete the entire process of payment, logistics and after-sales service without relying on third-party platforms. This model is good for both buyers and sellers. It can "one-to-one" complete the entire shopping process more smoothly, and the delivery and after-sales efficiency is higher, bringing a more convenient user experience. And TikTok Shop's fast payment return can reduce the seller's sales pressure and ensure the stability of the capital chain.

  • The supply and demand side rushes in both directions, TikTok e-commerce is in full swing

During the Q4 period of 2022, the supply side of TikTok e-commerce is actively entering the market. In December, the number of people who brought goods to TikTok e-commerce increased by 92% compared with October (data source: there are several super stores on the official account); The substantial effort on the content side has injected potential energy into the expansion of the TikTok e-commerce market.

At the same time, the increase in volume and price of TikTok e-commerce demand side has driven the sales of the market to achieve high growth. In November and December, the growth rate of TikTok e-commerce market sales was 26% and 32% respectively.

TikTok Shop's dual driving model of "shelf mall + live short video content planting grass" expands more marketing possibilities for merchants on the basis of commodity traffic. But don't underestimate the vision of sellers. Although "hot products" and "traffic hits" can bring instant satisfaction to brands, TikTok's continuous influence on users lies in the fact that brands can build relationships with consumers through the platform. Immediate and long-term connection, so that the product continues to sell well, and a single order becomes a long-term purchase.