Brands Hesitant Over TikTok Shop’s Livestreaming Opportunities

Since launching TikTok Shop in the U.S. in September 2023, TikTok has attracted approximately 500,000 merchants across a wide variety of industries and product ranges. However, despite these efforts, major brands remain cautious about fully embracing the platform’s livestreaming capabilities, which are being promoted as a way to boost holiday sales.

The “Live” feature allows users to broadcast live videos, but the current landscape is dominated by smaller brands and individual sellers, with significant participation from larger companies still lacking. This hesitance is attributed to several factors, particularly the unpredictability associated with livestreaming to TikTok’s audience of 150 million users. Marketing executives have noted the inherent risks of live selling, including the potential for miscommunication and brand reputation damage during broadcasts.

Additionally, the bureaucratic hurdles faced by larger companies complicate their ability to engage in live shopping effectively. The rigorous internal approval processes and branding concerns often slow down decision-making, making it challenging for big brands to activate campaigns quickly on the platform. Concerns around discounting also arise, as many established brands are reluctant to offer lower prices on TikTok Shop for fear of straining relationships with traditional retailers.

As TikTok Shop aims to reach a gross merchandise volume target of $17.5 billion in the U.S., the hesitance of larger brands could hinder progress. Marketing experts suggest that while the platform could benefit from exclusive product offerings, many major brands are still waiting to see how smaller competitors navigate the live shopping landscape before making a significant commitment.