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TikTok Shop marks massive ‘Shoppertainment’ growth in PH as it celebrates first year milestone

By Kara Santos Published Jun 14, 2023 9:04 am

How many times have you found yourself discovering something new while scrolling through social media? Like infomercials of the old on home shopping networks, online sellers have kept audiences glued to their smartphones and have become the voice of authority in defining what we want and need.

TikTok Shop, the shopping feature within TikTok, the leading social media app for short-form mobile video, continues to build on the next online shopping trend “Shoppertainment” in the Gen Z era. This e-commerce solution generates greater business outcomes by connecting brands, sellers and creators through fun and entertaining content that drives better sales, a winning "entertainment-first, commerce-second" strategy.

These days, customers value authenticity and relatability rather than traditional or forced ads, and online sellers provide a more casual and engaging way to shop. Going beyond entertainment or typical marketplaces, TikTok Shop manages to give merchants a platform to reach a wider audience globally, grow their social presence, and build real connections.

“At TikTok, we are on a mission to enable brands and sellers to unleash their e-commerce potential, by making today’s most engaging entertainment even easier to shop, unleashing sales,” said Paolo David, Philippine Market Leader of Global Business Solutions during the first-ever Learning Summit in February 2023, which drew nearly 500 creators, personalities, brands, and agencies.

TikTok Shop leads its first-ever Learning Summit in February 2023.

TikTok Shop has seen a 117% increase in sellers onboarded over the past 6 months, with a 53% uplift for TikTok Shop sellers reaching breakeven status in the same period.

TikTok Shop continues to innovate and support merchants by actively forging partnerships with leading brands and launching exciting campaigns throughout the year. These include education and training programs, participation in business expositions and roadshows, and sharing insights about Shoppertainment and other growth opportunities. 

In February 2023, TikTok launched its Learning Summit together with nearly 500 creators, personalities, brands, and agencies who are on TikTok. TikTok Shop has also onboarded local farmers and agropreneurs through its BuyLocal Bazaar, in partnership with PLDT-Smart and the Department of Agriculture, to promote homegrown goods. 

One of its initiatives is the 6.6 birthday campaign, designed to celebrate its anniversary and provide exclusive offers from partner brands such as YOU Beauty, Realme, Penshoppe, Maybelline, and Sperry. 

Empowering local creators and brands

The success of local brands and entrepreneurs showcases the opportunities for brands to grow and scale with TikTok Shop as it marks its first year milestones. To further inspire other local entrepreneurs to realize success on the platform, TikTok Shop Philippines recently launched its first-ever Mega campaign ambassador, self-made celebrity entrepreneur Glenda Dela Cruz (@iammissglenda), CEO of Brilliant Skin Essentials, Inc.,  (@brilliantskinofficial). 

TikTok Shop seller Louiejay Baloc (@louiejaybaloc) is just one of the online entrepreneurs who discovered TikTok Shop’s potential in promoting his business amid the pandemic. Prior to becoming an official partner of TikTok Shop, Baloc first dabbled as an affiliate of numerous shops. With 5.4 Million followers and counting, the livestream influencer now harnesses the power of the platform to sell the latest must-have gadgets and electronics, experiencing remarkable growth and success and winning multiple ranking competitions in TikTok Shop campaigns.

Screenshots from @louiejaybaloc and @syglow_official

Similarly, SY Glow (@syglow.official) ventured into TikTok Shop during the height of the pandemic and witnessed a surge in sales and demand for beauty products after customer testimonials gained popularity on the platform. 

The cosmetics brand generated its highest revenue of 803,000 USD (approximately P44.9 million) in April 2023, which led to a business expansion across Luzon. SY Glow shares the brand’s success through charity events and by providing an extra source of income to working moms and students.

Furthermore, Tiny Buds Baby (@tinybudsbaby) found success on TikTok Shop by offering a holistic experience for its customers. As a brand dedicated to supporting parents through their parenting journey, Tiny Buds Baby adapted its content to provide fun and laughter during the pandemic. When TikTok Shop opened, the brand seamlessly integrated its products into engaging content and solidifying its position as a go-to brand for safe and reliable baby products. Notably, Tiny Buds Baby exceeded the 11.11 Gross Merchandise Value (GMV)by 84%, showcasing its strong growth on the platform.

Additionally, SammyJ (@sammyj_bamf) achieved remarkable growth on TikTok Shop, particularly during the April Payday Sale, with a 44% increase in GMV compared to the previous month. SammyJ's success can be attributed to her effective strategies, such as creating a sense of urgency among buyers with limited-time discounts, engaging with her audience, and consistently posting short videos. Her captivating content and engagement with viewers have propelled her as a sought-after influencer in the fashion community.

It’s not just local creators and brands that are benefiting from the shop. In its first year of operations, TikTok Shop has also managed to give back to the community through BuyLocal Bazaar. The program in partnership with PLDT-Smart and the Department of Agriculture boosted the income of local farmers and agropreneurs by expanding their audience through online selling channel in the platform.

How does it work?

As a leading e-commerce platform, TikTok Shop allows creators to add a shopping tab to their TikTok business accounts in the form of TikTok Shopping. The platform creates incredible opportunities for brands and creators alike to expand their reach, engage in real-time conversations and make the most of e-commerce features to boost brand awareness and widen their audience online through in-feed videos, LIVEs and product showcases.

To support brands and sellers' growth on the platform, TikTok Shop has campaigns throughout the year, such as monthly double day, bimonthly payday, Super Brand Day, and TikTok Shop's own intellectual property campaign, “Friday FriYay” event. 

This weekly campaign involves using limited-time discounts, buy-one-get-one offers, freebies, or exclusive bundles and increased visibility of sellers and creators to boost anticipation among TikTok users and shopping enthusiasts.

TikTok Shop also connects sellers with talented TikTok creators and helps sellers easily find the right creators to drive sales.

Continuously looking at new ways to enhance its community's shopping experience, TikTok Shop introduced last February 2023 its Shopping Center feature. It has become the newest destination for personalized recommendations, showcasing promotion campaigns, shoppable content and product assortment in a feed format within one tab. This simplifies buyers' experience while increasing visibility for TikTok Shop merchants and their products, creating new opportunities for monetization. 

How to set up your own TikTok Shop

Eager to jump on the e-commerce bandwagon and become a seller yourself? 

Regardless of the number of followers you currently have, you can apply to be a seller and set up your own TikTok Shop. Here's how: 

  1. Sign up here with a PH phone number and your email address. You can log in directly if your phone and email have been registered on TikTok for Business platforms.
  2. Fill out the application and verify identity with the following documents:
    • For individual sellers: PH citizen: a PH-issued passport or identity Card (PhilSys ID, UMID, SSS, PhlPost ID, Voter's ID, PhilHealth ID, Professional Identification Card (PRC) ID,Driver's License)
    • For corporate sellers: Company certificate documents
  3. Wait for the result. Applications will be reviewed within 1-2 days and results will be sent via email.
  4. Set up your store and start selling. Once approved, you can manage and operate your store. Link your TikTok account to your store and start selling online.

        Interested in learning more? There are also learning resources available through the TikTok Shop Seller Academy with tips on how to get started and grow your business on the platform. 

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        Editor’s Note: BrandedUp is designed to provide you with insightful, inspiring and educational content created by PhilSTAR L!fe in collaboration with brands like TikTok.