Ms Sirinit Virayasiri, the head of business marketing for TikTok in Thailand, anticipates a new era in online commerce termed “shoppertainment”.
This novel concept blends content and commerce on a single digital platform and is expected to achieve a valuation of US$1 trillion across the Asia-Pacific region by 2025.
A study conducted by Toluna revealed that 97% of Thai TikTok users engaged with the platform during the sales season after viewing advertisements on TikTok.
The research discovered that TikTok users are 3.5 times more likely to spend between 10,000 and 17,600 baht during the massive sales season compared to those who don’t use TikTok.
Ms Sirinit reported that 80% of Thai TikTok users made purchases from TikTok stores during the grand sale seasons of 2022. The three most popular categories included fashion and accessories, beauty and personal care, and food and beverages.
The major factors that boost consumer spending during these massive sales include free shipping, promotional coupons and discounts, along with the option of cash on delivery, added Ms Sirinit.
She further explained: “TikTok is a unique platform where content and commerce seamlessly converges all within a single app, especially since the platform officially launched its TikTok shop feature last year.”
Owing to the smooth integration of TikTok shop, buyers don’t need to switch platforMs to finalize their purchase.
This makes it a convenient choice for the 85% of buyers who tend to switch apps during their online shopping journey, as revealed by the “2022 Future of Commerce” study conducted by TikTok and Boston Consulting Group (BCG).
Ms Sirinit disclosed that the platform hosts more than 325 million users every month, providing an empowering platform for over 15 million businesses across Southeast Asia.
The advent of shoppertainment as a new online shopping trend presents vast opportunities at a time when consumer demand is undergoing a significant shift.
BCG’s research suggests that the shoppertainment trend is likely to generate a staggering $1 trillion in business opportunities across Asia-Pacific by 2025, with Thailand’s potential growth estimated at $12.4 billion.
According to BCG, amusing content influences 77% of consumer purchasing decisions, and emotional factors drive two-thirds of new users to make a purchase.
As consumer preferences evolve, the research highlighted that 60% of consumers do not feel inclined to buy after viewing branded content.
Around 34% of consumers display skepticism towards branded content, making them less inclined to make a purchase.
“Shoppertainment can help unleash brand potential,” Sirinit stated.
She expressed that brands can foster meaningful connections with consumers by embracing shoppertainment on TikTok, since 70% of consumers rely on the content on TikTok for their purchasing decisions.
Moreover, entertaining content from creators, celebrities, and brands has prompted one in four TikTok users to consider buying from TikTok stores.
“TikTok redefines Thais’ shopping experience through shoppertainment — combining TikTok’s unique fun and entertaining content, followed by commerce — to drive business outcomes and connect brands, sellers and creators with our community,” Sirinit stated.
A joint study by TikTok and BCG revealed that 81% of TikTok users in the Asia-Pacific region stated that video content had influenced their recent purchases.
For instance, the hashtag #TikTokMadeMeBuyIt, a strong and widely recognized trend that emerged online during the pandemic, has pioneered new ways for users to discover products on the platform.
With over 60 billion views, #TikTokMadeMeBuyIt exhibits consumer needs that brands can leverage.
Ms Sirinit indicated that TikTok has rolled out a creative framework called “Recut – Remix – Reimagine” where existing TikTok assets are repurposed to produce even more engaging content, harnessing the creative prowess of TikTok.