Retail Customer Experience Mentions First Insight | Most Retailers Not Prepared for a TikTok Shutdown
Over half, 68%, of retailers believe a sale or ban of TikTok would impact business and conversion rate, just 28% have some sort of contingency plan in place.
Those are top findings from a First Insight report, "TikTok's Uncertain Future," conducted with InsightSuite.
"Retailers risk losing a powerful product discovery platform if TikTok is shut down," Greg Petro, CEO of First Insight, said in a press release on the findings. "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 revealed 82% of retailers will increase advertising spend on Facebook in the event that TikTok is banned.
Additional findings include:
- 73% of consumers plan to use TikTok as inspiration for their holiday shopping, and 59% intend to make purchases directly through TikTok Shop.
- 81% of retailers surveyed use TikTok to sell directly to consumers, but nearly 70% have struggled with stockouts and delays due to viral content.
- 39% of consumers named Facebook as the platform where they will spend the majority of their time if TikTok is banned while 40% of influencers agree that Facebook is where they would shift their focus.
The news comes on the heels of a Numerator report revealing 31% of U.S. adults are using TikTok, making it the fifth most-popular behind Facebook, YouTube, Instagram and Pinterest, respectively.
Read article on Retail Customer Experience.
