Big Brands Drive TikTok Shop Growth, Yet U.S. Livestreaming Trails
Leading brands like Pacsun and Crocs illustrate the rising momentum behind TikTok Shop’s expansion in the U.S. Pacsun, for example, leveraged the platform to boost denim sales significantly, while Crocs’ innovative promotions have captured notable consumer interest. These successes underscore the platform’s growing appeal to established brands seeking to engage with TikTok’s massive user base. Despite TikTok Shop recording an impressive 120% year-over-year growth in sales, a striking paradox exists: U.S. consumers demonstrate a strong preference for short-form video content over livestream shopping experiences.
The Persistent Livestreaming Gap
Data reveals that two-thirds of TikTok Shop’s revenue in the U.S. originates from short-form creator videos. Conversely, livestream shopping contributes less than 30% and, notably, this share has been in decline. Industry experts suggest this trend is linked to a cultural shift where live commerce, though highly popular in markets like China, has yet to gain a comparable foothold among American shoppers. This discrepancy remains despite TikTok’s significant investments in livestream infrastructure and promotional activities designed to stimulate the format.
While certain brands have found success through livestream events—Crocs’ Super Brand Day and Pacsun’s 24-hour shopping event stand out as examples—these initiatives often serve to strengthen brand visibility and engagement rather than drive the bulk of sales. They remain exceptions within the broader social commerce landscape on TikTok, supplementing, rather than replacing, the dominance of short-form videos as the primary driver of revenue.
Strengthening the Marketplace Foundation
TikTok Shop continues to evolve its platform with a focus on reliability and seller support. Efforts include streamlined seller onboarding processes and enhanced address verification checks. Additionally, the company has committed over $1 billion to combat counterfeit products and fraud, addressing key trust issues critical to marketplace growth. These steps aim to create a solid foundation for brands and sellers, encouraging sustained investment.
The platform’s unique ability to connect brands with highly engaged audiences remains widely recognized among major players. For brands planning their TikTok Shop strategies, understanding that short-form video content currently outperforms livestreams in consumer engagement is essential. Embracing this dynamic while monitoring TikTok’s ongoing platform enhancements will position brands to make informed decisions and capitalize on social commerce opportunities in the U.S. market.
