TikTok Shop the reality check

• #TikTok
• #Trending

User numbers, trust and growth potential

A lot of attention and little usage, that’s the current situation for TikTok Shop in Germany. The platform has big plans for e-commerce, but the reality is currently quite different. Only a fraction of users shop via TikTok. A lack of trust, data protection concerns and an unclear user experience are slowing down development. Would you like to find out why the big social shopping hype has so far bypassed Germany and whether this will change soon?

Why TikTok Shop has been slow to catch on in Germany so far

Many people are familiar with the shopping feature on TikTok, but the actual usage remains low. The reasons for this are complex, so let’s take a closer look in detail:

• Awareness exists, but usage is low
  According to an OMD survey, 34% of Germans are familiar with TikTok Shop. However, only about 2.5% of users have actually used it so far. Among 18- to 29-year-olds, the figure is 3.7%, and among 30- to 39-year-olds, it is 4.8%.
  
• Lack of trust among the target group
  Statista shows, that 47% of respondents cite a lack of trust as the main reason for not using it. 44% express concerns about returns and product quality. A third say they are generally reluctant to shop via social media platforms.
  
• User behaviour does not (yet) match the offering
  TikTok is primarily used for entertainment, not for targeted product searches. 63% of sceptics find it ‘unusual’ to combine content and shopping.
  
• Lack of brand presence
  Although some well-known brands such as Nivea and About You are active on the platform, the majority of the offerings do not appear trustworthy to many users. Without strong brands, there is a lack of necessary guidance when making purchases.
  
• Technical and legal barriers
  Criticisms include a lack of product search functions, a complicated checkout process and unclear communication regarding returns. For retailers, the TikTok Shop poses legal and logistical challenges.

Why TikTok Shop will remain exciting in the long term

Even though TikTok Shop is currently hardly used in Germany, this does not mean that the concept has failed. On the contrary, the social media platform has features that offer enormous potential in the long term. This is especially true for brands that are willing to break new ground.

Social commerce is on the rise

65% of TikTok users in Germany say they have purchased a product they saw on the platform. So the impulse to buy is there, but the direct purchase via the shop is still missing.

Trust is key

Users hesitate not because of the product, but because of the environment. Those who build this trust in a targeted manner create a solid basis for successful sales.

The key to brand positioning

Those who invest in the TikTok Shop now can establish themselves early on in a niche that is still relatively unoccupied. With the right content and transparent processes, strong brand loyalty can be built.

The young target group wants more

Generation Z increasingly obtains information directly from social networks. Those who impress with relevant content and genuine recommendations will not only be noticed, but will also remain in people’s minds.

What brands need to do now to gain trust

Trust is currently the biggest bottleneck in the TikTok Shop, but at the same time it is also the biggest opportunity. Those who manage to build this trust in a targeted manner can clearly set themselves apart from their competitors. Above all, this requires an authentic approach and transparent processes:

• Focus on real added value instead of traditional advertising. Products should be shown in a context that fits the platform, i.e. embedded in storytelling, testimonials or entertaining creator formats.
  
• Ensure transparency in all purchasing processes. Users want clear information about shipping, returns and service. Communicate this openly, in an easy-to-understand manner and quickly accessible.
  
• Use the credibility of creators. Recommendations from people you trust have a much stronger impact than traditional ads. Especially when they fit the target group and the product.
  
• Show social proof. Reviews, comments and testimonials help to dispel doubts and make the decision easier.
  
• Build a community. If you want to be successful in the long term, you should not only sell, but also listen. Respond to feedback and continuously develop your content.

Which brands are already successfully using TikTok Shop and what you can learn from them

Despite its still limited use, there are already companies that are actively using TikTok Shop and seeing initial success. Young, digital brands in the cosmetics, fashion and food sectors in particular are using TikTok as a playground for new formats. Their advantage: they understand how content and commerce work together.

Cosmetics brands, for example, show how to use their products in authentic tutorials, often with creators who have a real connection to the target group. The purchase link is placed directly in the video. The result is a significantly shortened customer journey and conversion rates of up to 10%. These are values that traditional ads rarely achieve.

Fashion brands are also increasingly relying on livestreams to present new collections and sell them directly. The combination of limited offers, direct interaction and community participation creates a dynamic that traditional shops cannot match.

Our conclusion: TikTok Shop only works if brands deliver content with real entertainment value. Those who understand that social shopping is not a copy of a web shop, but an emotional experience, can exploit the full potential of the platform.

TikTok Shop – Both a challenge and an opportunity

TikTok Shop is not yet a mass phenomenon in Germany, but that is precisely what makes the platform so exciting for forward-thinking brands. User numbers are low and trust still needs to be built, but the conditions for long-term success are in place. The powerful algorithm and proximity to the community create a unique environment for social commerce.

Brands that take the plunge now can not only establish themselves as first movers, but also develop a deep understanding of the platform. Those who test creative formats, offer storytelling with real added value and build trust in a targeted manner will be rewarded with reach, relevance and the opportunity to help shape a new form of digital commerce.

Now is the time for courage, curiosity and innovation.

If you are ready now, Lookfamed will support you in your success!