Amidst the debate in Washington regarding whether TikTok should be banned if its Chinese owner does not sell it, a particular group is closely monitoring the situation. This group consists of many brands, especially in the beauty, skin care, fashion, and health and wellness sectors, who have utilized the video app to boost their sales.
Youthforia, a makeup brand with over 185,000 followers on TikTok, is considering shifting more of its marketing efforts to other platforms like YouTube and Instagram. Underlinings, the maker of the popular Nailboo brand, had plans to use TikTok for launching a product with a major retailer in August, but now they are contemplating changing their strategy. BeautyStat, a seller of skin care products on TikTok Shop, cannot even imagine the platform disappearing.
BeautyStat’s chief marketing officer, Yaso Murray, stated, “TikTok is just too significant, especially in beauty and certain industries, for it to vanish.”
For years, companies and creators have been aware of the potential risk associated with TikTok. However, these concerns have become more tangible now that the House has approved a bill that would ban TikTok in the United States unless its owner, ByteDance, sells it. (The bill’s progress has slowed in the Senate since the recent vote.)
Some lawmakers in Washington view TikTok as a platform for Chinese government spying. Parents are concerned about the impact TikTok has on their children. However, numerous companies, both large and small, attribute their products’ exposure to potential customers, especially the younger demographic, to TikTok and its influencers.
Retailers like Sephora, Walmart, Target, and Amazon have also benefited greatly from TikTok, according to Razvan Romanescu, chief executive and co-founder of Underlinings and 10PM Curfew.
Many companies view TikTok as an essential part of their marketing strategy and sales growth. The platform’s short videos are easily digestible by consumers, and marketing on TikTok is relatively cost-effective for smaller brands. TikTok Shop, which was launched last year and allows users to purchase products directly on the app, has become particularly popular among beauty and fashion brands.
“Before Covid, the beauty category showed modest growth of a few percentage points each year,” said Anna Mayo, vice president of beauty and personal care at NIQ research firm. However, during the pandemic, with consumers having more leisure time and the rise of Zoom calls, TikTok beauty and skin care videos saw a significant surge.
Ms. Mayo added, “Since then, the beauty industry has seen continuous growth driven primarily by TikTok.” The platform’s videos help showcase new products and allow individuals to provide relatable content on how to use and style different products.
While larger companies can distribute their marketing budget across various platforms, TikTok stands out as a more cost-effective advertising channel compared to platforms like Google and Meta, the owner of Instagram.
Nadya Okamoto, who began posting TikTok videos about the organic menstrual products of her company, August, in the summer of 2021, remarked, “For a direct-to-consumer business like ours, the platform is very unique.” TikTok’s “For You” feed consistently introduces August’s videos to new consumers, offering a different reach from traditional social media platforms like Instagram.
Asked about a potential TikTok ban, Fiona Co Chan, CEO and co-founder of Youthforia, expressed uncertainty about finding a replacement for the platform. Frida uses TikTok to discuss its baby and postpartum products in a way that other platforms may find sensitive, according to Chelsea Hirschhorn, the company’s founder.
Frida was a late adopter of TikTok but has gained a substantial following and several viral videos. While the concerns about TikTok’s future are valid, Frida has diversified its advertising strategies to include traditional and creative methods aside from the app.