Friday, June 21, 2024

‘Shoppertainment’ is the future of e-commerce, says TikTok

A recent study from social media platform TikTok and US-based advising agency Boston Consulting Group (BCG) says that entertainment-driven commerce or “Shoppertainment” is the next big thing, potentially generating as much as $1 trillion in market value by 2025 in the Asia Pacific (APAC) region alone.

Photo credit: Pexels.com

The researchers pointed out that as many as one out of every three consumers are skeptical about branded content on social media, with audiences looking for authentic and credible content – preferably in a short video format – that educates and informs without hard-selling the product.

Hence the rise of “Shoppertainment,” which the researchers describe as “content-driven commerce that seeks to entertain & educate first while integrating content and community to create highly immersive shopping experiences.”

The study anticipates Shoppertainment to rise at a compound annual growth rate (CAGR) of 63% in the countries covered by the research, with Indonesia, Japan, and South Korea as the top three contributing markets in APAC.

“The e-commerce experience has always been about bringing the best deals to the right audiences as efficiently as possible. However, consumer purchasing habits are evolving, and people are looking to be delighted online. Nobody wants to be sold to, but everyone will say yes to being entertained,” said Sam Singh, vice president of global business solutions for APAC at TikTok.

“This presents an opportunity for businesses to embrace Shoppertainment: a content-first approach where brands educate and entertain audiences. Shoppertainment combines content and culture and commerce in a seamless way, allowing brands to engage with audiences throughout the purchasing journey without overtly selling. This allows brands to meet both functional and emotional needs, thereby building stronger and longer relationships.”

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