Douyin Earns $374b in Sales, TikTok Pushes For In-Stream Shopping

TikTok is ramping up its in-stream shopping efforts with a new promotion, “Fall Deals For You,” aimed at driving more user purchases – organically – throughout October. The campaign offers discounts on thousands of popular products from major brands such as Phillips, Dyson, Keurig, e.l.f. Cosmetics, and more. Additionally, TikTok is hosting live shopping events, including influencer-led promotions, like Steve Aoki sharing trading card deals and Glamlite’s exclusive Michael Myers Collection.

While in-app shopping has gained traction, particularly in China via Douyin (TikTok’s Chinese counterpart), where over $374 billion in sales were generated in 2023, TikTok’s Western audience has been slower to adopt the trend. In comparison, TikTok facilitated $3.8 billion in global spending in 2023, signaling a significant gap in in-stream shopping success between the two regions.

Live-streamed influencer sales, a driving force behind Douyin’s success, are being mirrored in TikTok’s efforts. As of late 2023, the platform has also been testing AI-powered hosts to sell products in real-time – meaning that the platform has artificial “creators” that can stream 24/7, taking over for the real creators that they are directly based on. It’s not currently clear if this trend will ever make it over to the West, but a push for more in-app shopping still makes sense.

Despite the challenges, TikTok is betting on continued growth in the in-stream shopping sector, particularly among younger users. With the high revenue potential seen in China, TikTok aims to replicate that success in global markets, although it may take time to reach the same level of adoption.