Retailers unprepared for TikTok ban: 68% acknowledge impact: Report

"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 be if TikTok goes away, and which platforms can deliver the same product discovery and customer acquisition magic that TikTok presents.”

The report also reveals that 82 per cent of retailers will increase their advertising spend on Facebook in the event that TikTok is banned, with both consumers and influencers believing that Facebook will be the dominant platform. In fact, 64 per cent of influencers have already noticed shifts in consumer behaviour, such as increased engagement on other platforms, signaling that consumers may be preparing for life beyond TikTok sooner than retailers realise.

TikTok currently holds a lot of power when it comes to holiday spending, with 73 per cent of consumers planning to use TikTok as inspiration for their holiday shopping, and 59 per cent intend to make purchases directly through TikTok Shop. 81 per cent of retailers surveyed use TikTok to sell directly to consumers, but nearly 70 per cent have struggled with stockouts and delays due to viral content. The unpredictability of ‘TikTok made me buy it’ moments highlight the challenges retailers face in managing inventory and planning for demand spikes, as per the report.

39 per cent of consumers named Facebook as the platform where they will spend the majority of their time if TikTok is banned while 40 per cent of influencers agree that Facebook is where they would shift their focus. Instagram followed as top choice for 32 per cent of consumers and 33 per cent of influencers.

Fibre2Fashion News Desk (RR)