ForTikTok Shop, the vast US market is undoubtedly a key battleground that must be conquered in its global strategy.
This means that the platform cannot be satisfied with just selling daily necessities or beauty products, but must broaden its product range and attempt to enter higher-value categories.
Image source: Internet
Recently,one of theirnew moveshasattracted industry attention.
Before this year's Black Friday, a batch of high-end luxury goodswere quietly launched onTikTok Shop.
These include handbags from luxury brands such as Hermès and Chanel, limited edition sneakers co-branded by Louis Vuitton and Nike, as well as famous watches from Rolex and Cartier, with some items priced as high as$11,000.
This move is seen as a clear signal thatTikTok Shop is officially entering the US luxury retail sector.
Image source:the business times
At present, many local second-hand luxury stores have already settled inTikTok Shop, using short videos and live streaming to drive sales. 17th Street, a second-hand boutique from New York, is one of them.
The store's social media managerrevealed in a related interviewthatTikTok has become one of the brand's important sources of traffic. Since joining the platform before last Christmas, they have sold nearly a thousand branded bags through it.
Although the platform takesan 8% commission on each luxury transaction, merchants are still willing to continue investing due to the significant increase in sales.
17th Street has now formed a dedicated live streaming team, conducting daily live commerce sessions, with daily sales reaching up to $30,000 on good days.
Image source:TikTok
Early Layout, Market Potential Continues to Be Released
In fact,TikTok Shop's foray into the luxury sector is not its first attempt.
In April last year, its UK site launched a second-hand luxury category, covering high-end clothing, designer bags, accessories, and watches, and cooperated with well-known local second-hand luxury merchants to ensure the authenticity of the goods.
In addition to the platform's own expansion needs, the continuously growing market demand is also an important reason for its push into the luxury sector.
Somereports point out that the younger generation, especiallyGen Z, is reshaping their consumption concepts. They no longer blindly pursue brand new products, but instead favor second-hand luxury goods.
And this group of young people is preciselyTikTok's core user base.
Multiple surveys show that althoughFacebook and Instagram still have an advantage in overall user scale, among Gen Z, TikTok's usage rate and popularity are significantly higher than other social platforms.
Image source:Bolt Insight
On the other hand, expanding the second-hand luxury market has become an industry trend, with retail giants such as Walmart and Amazon also entering the field one after another.
Earlier this year, Walmartpartneredwithsecond-hand platformRebag to launch more than 27,000 second-hand luxury items, and by mid-yearitsbusiness growth rate had exceeded200%, with second-hand Rolex watches being the most popular.
A series of moves by major platformsare not only aimed at capturingGen Z consumers, but also a direct response to the huge market potential. According to a forecast jointly released by Boston Consulting Group and luxury resale platform Vestiaire Collective, the global luxury resale market is growing at a rate of about 10% per year, with broad prospects.
Against this backdrop, whether it is traditional retail giants like Walmart and Amazon, oremerging social e-commerce platforms like TikTok Shop, all see second-hand luxury goods as a growth point worth investing in.
Image source:the business times
Overall,TikTok Shop's launch of luxury sales in the US is not only an important attempt to upgrade its categories and break user circles, but also a strategic layout in line with market trends and capturing the consumption direction of Gen Z.
As the authentication system gradually improves and the live commerce model continues to mature, luxury goods may becomeanother growth engine for TikTok Shop in the US e-commerce battlefield.