New Report Shows TikTok’s Uncertain Future is Shaping Shifts in Consumer Behavior

New Report Reveals TikTok’s Uncertain Future Could Impact Retailer Strategies

First Insight’s latest report, TikTok’s Uncertain Future, highlights potential disruptions for retailers if a TikTok ban is enacted. The report reveals that while 68% of retailers recognize that a TikTok ban could affect their business and conversion rates, only 28% have a contingency plan in place.

“Retailers risk losing a powerful product discovery platform if TikTok is shut down,” said Greg Petro, CEO of First Insight. “With over two-thirds of consumers discovering products on TikTok that they later purchase elsewhere, the clock is ticking for retailers to develop contingency plans. Retailers need to understand where their shoppers will turn if TikTok disappears and identify alternative platforms that can match TikTok’s product discovery and customer acquisition capabilities.”

Key Insights from the Report Include:

  • Influence on Holiday Purchases: TikTok is a major force in holiday shopping, with 73% of consumers planning to use it for inspiration and 59% intending to make purchases directly through TikTok Shop.
  • Retailers’ Reliance on TikTok: 81% of retailers use TikTok for direct sales, yet nearly 70% have faced stockouts and delays due to viral content. This unpredictability of “TikTok made me buy it” moments underscores the challenges retailers face in managing inventory and anticipating demand spikes.
  • Shift to Facebook: 82% of retailers plan to increase their advertising spend on Facebook if TikTok is banned. Consumers and influencers expect Facebook to become the dominant platform, with 39% of consumers and 40% of influencers forecasting a shift in focus to Facebook. Instagram is also a top choice, with 32% of consumers and 33% of influencers.

Why This Matters for Retailers
The findings suggest that retailers need to proactively monitor shifts in customer behavior and preferences. Relying solely on historical trends can lead to missed opportunities and costly errors. By integrating AI-driven, Voice-of-Customer (VoC) data into their strategies, retailers can make informed decisions about influencer partnerships, pricing strategies, and marketing focus—ensuring they stay ahead of trends and maintain resonance with their target audiences.

For more details and to download the full report, visit www.firstinsight.com.

Methodology
The findings are based on a May 2024 survey of 185 U.S. retail decision-makers, conducted via InsightSUITE. Responses were analyzed based on role, title, company size, and retail sector, focusing on feedback from merchandising, marketing, and consumer insights management. Consumer and influencer data were collected from an August 2024 survey of highly engaged TikTok users.

About First Insight
First Insight is a global leader in Voice of the Customer retail solutions, using actionable consumer insights and AI to transform business decision-making. The platform helps retailers and brands boost revenues and profitability by providing data-driven strategic insights, eliminating guesswork, and optimizing decisions in strategy, product development, pricing, planning, and marketing. For more information, visit www.firstinsight.com.

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