TikTok Shop Excites US Consumers and Surpasses Established Online Giants

The online trading world in the USA is experiencing a surprising success: TikTok Shop has taken the lead, even surpassing brands like Shein and Sephora in the favor of US consumers. A forecast for 2025 by Coefficient Capital and industry expert Dan Frommer sheds light on future consumer trends and reveals the impact of changing spending habits of Americans on certain brands. These insights are based on eleven surveys with more than 3,000 consumers in the USA, with the most recent survey conducted this month. TikTok Shop, which launched in September 2023, has quickly established itself as a popular destination for online shoppers. According to the report, 80% of TikTok's monthly active users are familiar with the shop, highlighting the growing reach of this relatively young provider. Through this reach, TikTok, newly introduced, has surpassed well-known retailers such as Sephora, Shein, and even the Qurate Retail Group in terms of spending behavior in the USA during the third fiscal quarter. Despite market challenges, Sephora generates impressive sales for LVMH, while Shein records billions in profits. Yet the e-commerce giant Qurate is grappling with declining revenues. Interestingly, the current report shows that a significant number of purchases via TikTok Shop occur in the 'fashion, clothing, and accessories' sector, followed by beauty and personal care products. Thus, TikTok continues its path as a leading platform not only in social networking, but also in e-commerce, even though the platform continues to face regulatory challenges in the USA.