TikTok Shop Tops Shein and Sephora in Online Shopping Preferences in the US
TikTok Shop is making waves in the world of online shopping, outperforming retail giants like Shein and Sephora in the US market. Since its launch in September 2023, TikTok Shop has quickly caught the attention of American consumers, with 80% of surveyed TikTok users being aware of the platform.
A recent consumer trends report by Coefficient Capital and The New Consumer’s Dan Frommer delved into the spending habits of Americans and how they impact different brands. The study, which included 11 surveys of over 3,000 US consumers, highlighted TikTok Shop’s increasing popularity and reach among shoppers.
Despite being a newcomer compared to established retailers like Sephora and Shein, TikTok Shop managed to surpass them in US consumer spending during the third financial quarter, as per the trends report. Sephora, known for its affiliation with luxury brand LVMH, achieved record-breaking sales in 2023, generating $10 billion in revenue in North America.
Shein, on the other hand, raked in $2 billion in profits the same year, while Qurate Retail Group, which includes brands like QVC, reported a slight decrease in revenue but still managed to generate $152 million in operating income during the third quarter.
The data clearly shows that TikTok Shop is gaining traction among US shoppers, signaling a shift in the online retail landscape. With its growing popularity and reach, TikTok Shop is certainly a retailer to watch in the coming years.
