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  • 📈 Can TikTok Shop really attribute company growth?

📈 Can TikTok Shop really attribute company growth?

What TikTok Shop Means for Brands: Insights and Strategies

Hey, it's Ashley!

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Can TikTok Shop really attribute brand growth?

Mitchell Halliday, founder of the U.K.-based beauty brand Made by Mitchell, that has done over ÂŁ35million via TikTok Shop has observed a significant transformation in the way his brand connects with consumers through TikTok Shop.

This platform has not only altered the business model but also expanded the product reach, contributing substantially to the company's growth.

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“The community we’ve built via TikTok has allowed us to reach new heights and opportunities we wouldn’t have otherwise accessed so quickly. The brand boomed in a matter of weeks on the platform and we’ve managed to sustain that level of demand and growth,”

Mitchell Halliday

Similarly, Paul Jauregui from BK Beauty noted back in January that TikTok was driving 50% of their sales, underscoring the platform's power in generating substantial revenue.

So, what does this mean for brands?

1. Unprecedented Reach and Engagement:

TikTok Shop offers brands an unparalleled opportunity to connect with a vast and engaged audience. The platform's algorithm-driven content discovery means that even new and smaller brands can achieve rapid visibility and engagement.

This democratization of reach allows brands to build strong communities and foster direct interactions with consumers, creating a loyal customer base quickly.

2. Transformative Growth Potential:

Brands that leverage TikTok Shop effectively can experience explosive growth. The platform's ability to turn viral content into significant sales highlights its potential as a powerful driver of business expansion.

As Mitchell Halliday’s experience illustrates, a well-executed TikTok strategy can lead to sustained demand and growth, propelling brands to new heights.

3. Strategic Investment and Planning:

However, succeeding on TikTok Shop requires careful planning and investment. Brands need to be prepared to allocate resources for ads, partnerships, and team expansion.

The initial phase may demand a focus on growth over immediate ROI, with the first 90 days being critical for building volume and presence. This long-term perspective is essential for leveraging the platform's potential fully.

4. Handling Increased Demand:

A successful TikTok presence can lead to a significant increase in visibility and demand. Brands must ensure they have robust systems in place for fulfillment, stock management, and customer service to handle this surge. Being prepared for the "halo effect" of going viral is crucial to maintaining customer satisfaction and sustaining growth.

5. Long-term Community Building:

TikTok excels in community building, and brands that prioritize engaging with their audience can create lasting relationships.

This community-driven approach not only boosts sales but also enhances brand loyalty and advocacy. Investing in authentic and consistent content that resonates with the audience is key to sustaining this community.

Conclusion:

TikTok Shop represents a transformative platform for brands willing to invest in strategic planning and resource allocation. The potential for rapid growth, increased visibility, and deep community engagement makes it a compelling opportunity in today's digital commerce landscape.

As Mitchell Halliday and Paul Jauregui's experiences demonstrate, TikTok can significantly impact a brand's trajectory, making it a must-consider platform for ambitious brands aiming to reach new heights.

If brands can confidently address the crucial questions of investment readiness, growth prioritization, and demand management, TikTok Shop could become a strategic and transformative component of their business model.

Embracing this platform requires a blend of patience, strategic foresight, and operational readiness, but the rewards make it an opportunity not to be missed in the evolving digital commerce landscape.

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3 Questions to Ask Before Starting on TikTok Shop:

(Designed for brands aiming for the top 10 on the platform)

As brands increasingly turn to TikTok Shop to reach new audiences and drive sales, it's important to approach this platform strategically.

Before diving in, consider these key questions to ensure you're ready to maximize the potential of TikTok Shop and achieve a top position on the platform.

1. Are You Ready to Invest?

Entering the TikTok Shop ecosystem requires a significant commitment of both time and financial resources.

Are you prepared to dedicate the necessary budget for ads, potentially hire a partner or agency, and scale up your team to manage increased operations? A successful TikTok Shop presence isn't built overnight—it demands sustained investment and strategic planning.

2. Can You Prioritize Growth Over Immediate ROI?

The first 90 days on TikTok Shop should be viewed as a foundational period focused on building volume and presence.

Are you willing to prioritize long-term growth even if it means accepting a lower return on investment in the short term? This mindset is crucial for leveraging the platform's full potential and establishing a strong market position.

3. Are You Prepared for the Halo Effect?

A viral TikTok moment can exponentially increase your brand's visibility and demand across all channels. Can your brand manage the surge in visibility and demand? This includes robust fulfillment processes, stock management, and customer service capabilities.

Ensuring your infrastructure can handle the "halo effect" of going viral is essential to sustaining success and customer satisfaction.

If you can confidently answer "yes" to these questions, prioritizing TikTok Shop could be a strategic and transformative move for your brand. Embracing this platform requires a blend of investment, patience, and operational readiness, but the potential rewards make it a compelling opportunity in the ever-evolving landscape of digital commerce.

TikTok Brand of the Week - Tonic Health

Building a Brand Through Controversy and Education

Tonic Health has gained a significant presence on TikTok with 131 million views and 4.2 million likes across 904 videos. With 354,000 followers, the brand has managed to create a strong community around health and wellness.

Content and Strategy

Sunna van Kampen, the founder of Tonic Health, is the face of the TikTok account. His content focuses on sharing knowledge about health and wellness, which not only builds the brand but also enhances his personal brand.

The videos are distinctively styled, often filmed in supermarkets, which adds a unique touch to the content. This approach helps the audience instantly recognize Tonic Health videos.

@tonichealth

The problem with Nando’s Perinaise #nandos #perinaise #health #alternative #foodhacks #swap #mayonnaise

Engagement and Shareability

The content is highly shareable and educational, making it appealing to a broad audience. By exposing and reviewing other brands, Sunna sparks controversy and discussion in the comments, driving engagement.

His honest feedback on products found in supermarkets resonates with viewers, encouraging them to share the content.

Posting Frequency and Content Focus

On average, Tonic Health posts one video a day. This consistency helps maintain audience interest and engagement. However, despite the large following and engagement, there have only been 700 sales generated through the TikTok shop.

This raises a question about the balance between content focus on general health topics versus direct promotion of Tonic Health products.

Areas for Improvement

One area that could be improved is community interaction. Responding to questions and engaging with followers in the comments is crucial for building a strong community on TikTok.

This interaction can also drive more direct engagement with the brand's products, potentially increasing sales through the TikTok shop.

Conclusion

Tonic Health's TikTok strategy of educational and controversial content has successfully built a large and engaged audience.

However, a more focused approach on promoting the brand's products and increasing interaction with followers could enhance sales and further strengthen the community, but if the goal is just to bring awareness to what’s on the supermarket shelves then they are doing a great job of this.

That’s it for this week!

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Ashley ✌️

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