How Will TikTok Warehouses Impact CPG Brands?

The idea of social commerce has been a long time coming. While we've had this term for some time, social commerce has been a "part" of traditional retail and ecommerce. Only in the past week has fully integrated social commerce been something CPG brands need to start test-driving as a part of their omnichannel approach. 

Here's a look at some ways we believe TikTok warehouses will impact CPG brands.

Channel Integration 

While there will be plenty of clickbait articles with titles such as "How TikTok is killing brick n mortar stores," integration will ultimately emerge. Instead, retail stores will have opportunities to leverage their TikTok following for national distribution.

Social Competition 

TikTok may be the first, but it will not be the last. Other social media platforms have already swiped the ideas of TikTok, so why should we assume this will be any different? 

That said, first-to-market may not be the ultimate category leader. Fulfillment/distribution has many moving parts, and unless execution is on-point, TikTok may be the first to fulfill but prove to be where other companies learn from their mistakes. 

Influencer Marketing

Influencer marketing is already blazing a trail for the future of commerce, but TikTok distribution may be the lighter fluid that poured on the fire. Like Amazon and Ecommerce sites, we can expect influencers to receive a kickback, but we will have new factors to consider.  

Will Influencers sign agreements with particular platforms?

Does the brand or TikTok pay the affiliate payout? 

Can we expect an increase in brand influencer investments? 

No matter what, Influencers will become an even more critical part of the conversation for CPG brands.

Category Disruption

Disruptors emerge anytime there is a new means of marketing. Is your category more inclined to experience a disruption? In some capacity, we expect all categories to see new brands emerge within this commerce channel. The danger to brands is those who begin with TikTok commerce but land across retailers where existing brands have a stronghold. 

The Future of Social Commerce

TikTok warehouses will create waves, but this is just the beginning. Virtual commerce is the Tsunami that will take all channels by storm, but CPG brands have more time to create their brand strategy for this new era.

What initiatives do you plan to create with the upcoming opportunities in social commerce?

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