TikTok and Social Media for Brand Growth | Oct 2024 GS Summit Phase 1

Introduction

Hello everyone, thank you for joining me today. I apologize for my tardiness, but like many of you navigating through e-commerce, I have some exciting gifts to share with you at the end of my talk. Have you ever considered offering gifts to your customers while running your e-commerce business? It’s a great strategy!

First, let’s delve into the significance of TikTok as a platform. It boasts around 10 million monthly active users; this figure represents people who actively engage with the app, seeking content and messages that resonate with them. Importantly, TikTok is more than just an entertainment platform; it is a rising force in the e-commerce market. If you are currently relying on traditional e-commerce giants like Alibaba or conventional social media channels, it may be time to pivot your strategy and explore TikTok.

Let’s start with a quick survey: how many of you currently have a TikTok account? It seems there’s only one person here. It’s surprising, especially considering the prevalence of TikTok's user base!

Now, allow me to share some insights. Users on TikTok are 1.8 times more likely to discover new products and trends through the platform. In fact, a significant 44% of users report buying items they hadn’t previously understood after discovering them via TikTok. A great illustration of this trend is the “lollipop skincare” phenomenon, where an innovative product—skin care delivered in the form of a lollipop—captured consumers’ curiosity and drove sales.

This leads us to a fundamental shift in storytelling approaches. The technique of storytelling has evolved; instead of revealing the conclusion at the end, we should aim to hook our audience right from the start. The golden rule is to grab attention within the first three seconds of a video, especially on TikTok, as our attention spans are limited. If your content fails to capture interest quickly, it risks being ignored. Interestingly, in China—where TikTok originated, operating as Douyin—videos are grabbing attention in just one second!

With storytelling, remember that TikTok users aren’t just passive viewers; they aspire to engage with the narrative. In fact, users are 1.4 times more inclined to continue watching videos with compelling stories. This is vital information for crafting your TikTok marketing strategy.

Now, who belongs to the age demographic of 20-29? This group represents a prime target audience for your marketing efforts on TikTok. Influencer marketing is a powerful tool, but before we discuss it, let’s check if any of you have allocated budget for influencer collaborations. It seems that no hands went up!

An important statistic to keep in mind is that 25% of your competitors are currently increasing their budgets for influencer marketing. This trend is widespread across industries, so even niche markets can benefit from influencer outreach. In fact, 26% of e-commerce businesses are planning to allocate less than 10% of their marketing budget towards influencers, with another 34% planning to increase investments.

How can you leverage this opportunity? Many businesses are finding success through influencer marketing, but the strategies are evolving. You may have heard of KOLs (Key Opinion Leaders), but there’s also a growing focus on KOCs (Key Opinion Consumers). KOCs typically have smaller follower counts (around 1,000 to 8,000) but often yield more authentic engagement and are considerably more cost-effective.

Collaboration with influencers on TikTok means creating content that resonates with both the influencer and their audience. This goes beyond traditional endorsements—it's about storytelling and involvement.

The final takeaway I’d like to share is concerning commerce on TikTok: successful brands create trust and engage users. Data shows that 41% of users are more likely to trust brands on TikTok. Additionally, 31% of users become loyal customers based on their TikTok experience, while 33% perceive brands as more relatable when they engage in personalized branding.

To illustrate, let’s consider a successful case from Indonesia, where a mother-and-baby community leveraged TikTok to launch their product and experienced a five-fold increase in sales. This reflects the platform’s immense potential for driving e-commerce in dynamic markets.

Before we wrap up, I have a special gift for you! If you send me a friendly email, I will share three valuable reports with you, each worth at least $ 1,000, completely free. Just drop me a line!

Keywords

• TikTok
• E-commerce
• Influencer Marketing
• KOL (Key Opinion Leader)
• KOC (Key Opinion Consumer)
• Storytelling
• Audience Engagement
• Market Strategy

FAQ

Q: How can TikTok influence my e-commerce strategy?
A: TikTok serves as a powerful platform for product discovery, with users actively looking to engage with new trends and products.

Q: What is the golden rule for creating content on TikTok?
A: The crucial rule is to capture viewers' attention within the first three seconds of your video to prevent them from scrolling past it.

Q: Should I focus on KOLs or KOCs for influencer marketing?
A: Both have their advantages. KOCs can often provide more authentic engagement at a lower cost compared to KOLs who have a larger following.

Q: What demographic should I target on TikTok?
A: The 20-29 age group is a prime target market, as they represent a significant portion of TikTok’s user base.

Q: How can I build trust with my audience on TikTok?
A: By creating authentic and engaging content and treating your brand as relatable and human, you can build strong connections with your audience.