6-7-2023 (BANGKOK) Sirinit Virayasiri, Head of Business Marketing for TikTok Thailand, predicts that the convergence of content and commerce on a single platform, known as “shoppertainment,” will shape the next era of online commerce. By 2025, this trend is expected to reach a value of US$1 trillion across the Asia-Pacific region.
A survey conducted by Toluna revealed that during the sales season, 97% of Thai TikTok users responded positively to advertisements on the platform. The research also found that TikTok users were 3.5 times more likely to spend between 10,000 and 17,600 baht compared to non-TikTok users.
Ms. Sirinit stated that during the mega sales seasons in 2022, 80% of TikTok users in Thailand engaged in shopping through TikTok shops. The top three categories for purchases were fashion and accessories, beauty and personal care, and food and beverages.
The key drivers influencing consumer purchases during mega sales were free delivery, coupons and discounts, and the option to pay with cash on delivery, Ms. Sirinit added.
She explained, “TikTok is a unique platform where content and commerce seamlessly converge within a single app, especially since the official launch of the TikTok shop feature last year.”
The TikTok shop’s seamless integration allows consumers to complete their purchases without leaving the platform. This provides a clear and convenient alternative for the 85% of consumers who typically switch between apps during an online shopping journey, as revealed by the “2022 Future of Commerce” study conducted by TikTok and Boston Consulting Group (BCG).
Ms. Sirinit stated that TikTok has over 325 million monthly active users on the platform and empowers more than 15 million businesses across Southeast Asia.
The emerging trend of shoppertainment in online shopping presents significant opportunities during a crucial shift in consumer demand. BCG’s research indicates that by 2025, the shoppertainment trend will create $1 trillion worth of business opportunities in the Asia-Pacific region, with $12.4 billion available for growth in Thailand.
According to BCG, 77% of consumer purchase decisions are influenced by entertaining content, and two out of three new users make a purchase based on emotions.
As consumer expectations evolve, the study also found that 60% of consumers are not inclined to make a purchase after viewing branded content. Additionally, 34% of consumers express skepticism towards branded content, making them less likely to buy.
Ms. Sirinit commented, “Shoppertainment can unlock brand potential.” By emphasizing shoppertainment on TikTok, brands can better respond to consumer needs and establish meaningful connections. The study reveals that 70% of consumers trust TikTok content when making purchasing decisions.
Furthermore, one in four TikTok users consider making purchases on TikTok shops due to the entertaining content created by creators, celebrities, and brands.
Ms. Sirinit concluded, “TikTok redefines the shopping experience for Thais through shoppertainment, combining TikTok’s unique and entertaining content with commerce. This drives business outcomes and connects brands, sellers, and creators with our community.”
In a recent study conducted by TikTok and BCG, 81% of TikTok users in the Asia-Pacific region stated that video content influenced their recent purchases.
For instance, the cultural phenomenon known as #TikTokMadeMeBuyIt gained traction during the pandemic, offering users new ways to discover products on the platform. With over 60 billion views, #TikTokMadeMeBuyIt showcases consumers’ needs that brands can tap into.
TikTok has introduced a content maturity framework called “Recut – Remix – Reimagine,” where existing creative assetsare utilized to create even more entertaining content through creative ideas, harnessing the power of TikTok.
