Study by Dash Hudson and NielsenIQ Reveals Strong Signals for US Brands on TikTok Shop

A recent study conducted by social media management platform, Dash Hudson, in collaboration with global consumer data analytics leader, NielsenIQ, has unveiled promising opportunity for US brands considering tapping into the TikTok Shop sales trend. TikTok Shop, an all-in-one e-commerce solution, has emerged as a powerful platform for driving sales and brand awareness on TikTok.

TikTok Shop offers the opportunity to directly sell products within the TikTok app, creating a seamless shopping experience for users. In recent years, TikTok has gained immense popularity among consumers, with US adults reported to spend a total of 4.43 billion minutes per day on TikTok this year –– a 5x increase since 2019. Such an increase provides a unique opportunity for brands to reach a wide audience and bring them down the funnel to conversion.

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“TikTok Shop, a global powerhouse in beauty retail, has already achieved remarkable success worldwide. It ranks as the #2 personal care ecommerce retailer in China and the #4 cosmetics retailer in the UK by sales. Now, with its sights set on the US, the largest global beauty market, TikTok Shop made its mark by reaching the #12 position in beauty and personal care ecommerce retailers in the US by November 2023,” said Anna Mayo, VP Beauty thought leadership, NIQ. “Demonstrating an ability to translate views into sales, TikTok Shop has ushered in a new era of social shopping, poised to transform how consumers discover and shop for beauty products. The engaging platform of TikTok serves as a powerful catalyst in driving beauty sales, providing a dynamic and visually appealing space for enthusiasts, influencers, and brands to connect. This unique environment has led to a significant boost in sales as trends and recommendations rapidly spread across the TikTok community.”

While TikTok Shop was introduced in the United States in April 2023, it launched in the United Kingdom in 2021. The sales data, inclusive of the beauty industry, provides a glimpse into the potential opportunity in the US market, which traditionally sees in store beauty sales about 5x greater than the UK market. To date, the United States has seen a consistent monthly average growth of 116% in TikTok Shop beauty sales from April through November.

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With an average price point of $13.01 USD, these top five sales-producing beauty brands on TikTok Shop –– Made by Mitchell, Nature Spell, PLouise, BPerfect Cosmetics and The Beauty Corp –– collectively represent one-third of all beauty category sales. In addition to holding one-third of all beauty sales on TikTok Shop, the top five brands also average 121% more shares and 82% more video views than the TikTok beauty benchmark.

“This research proves that social media has democratized the competitive landscape for brands,” said Kate Kenner Archbald, CMO of Dash Hudson. “By strategically curating engaging content, brands now hold the power to not only achieve traditional social metrics such as awareness, engagement and reach on social platforms, but to also leverage the social space as a vehicle to contribute to brand growth. With the right prioritization, any brand can win.”

Kenner Archibald further highlighted the research’s implications for US brands, emphasizing the immense potential of TikTok Shop. With a rapidly expanding user base and its inherently engaging nature, TikTok Shop stands as a transformative force in e-commerce. Brands that embrace social selling have a unique opportunity to drive sales and gain a competitive advantage in the market.

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