Close Look at TikTok Shopper 👀TikTok Shop, alongside Shein and Temu, is reshaping US retail, leveraging influencer marketing and its social platform's reach. A recent "Earnest Analytics Case Study" delves into TikTok Shop's customer base, offering fresh insights.📊 Recent Sales InsightsSince its September 2023 launch, 11% of US households have shopped on TikTok Shop, with sales spiking 145% in November 2023, thanks to Black Friday.The momentum continued, although growth rates have moderated since the peak.👥 Understanding the ShoppersYoung adults (18-24) are 3.2x more likely to TikTok shop vs other groups, but it's not just a Gen Z phenomenon—older demographics are also engaged.Median-income earners ($55k-$90k) are the primary drivers of TikTok Shop's growth, indicating a slightly more affluent base than the typical TikTok user.Earners with little to median income ranges are the second fastest growing segment, more in line with expectations for younger users💼 Spending PatternsRepeat customers account for 81% of February 2024's sales, underlining a strong retention strategy (up from up from 64% in November)TikTok Shop users favor budget-friendly fashion, allocating 26% of their apparel budget to Off-Price Stores and 11% to Fast Fashion, above the average shopper's spend.🔍 Consumer PreferencesTikTok shoppers show a broad shopping palette, favoring Etsy & Temu over traditional mall brands, and prefer Nike over Lululemon.Interestingly, 28% of Shein's and a quarter of Temu's customers also shop at TikTok Shop, highlighting significant cross-over potential.Despite this overlap TikTok Shop has not yet had a negative impact on Shein sales, rather opposite as TikTok shoppers spend more at Shein than average customer. While spending more at Shein and other value retailers, TikTok Shop users spent less at Nike and eBay
