TikTok forecasts record-breaking Christmas sales for brands on the platform

TikTok predicts that this Christmas will mark its biggest retail moment yet, driven by an unprecedented surge in LIVE shopping sessions, and a projected 58% year-on-year increase in ad spend revenue from retail and ecommerce clients on TikTok for the festive period in the UK. This growth comes as more businesses join the platform and drive real-world impact and sales this festive period, through the power of 'discovery commerce'.

Mitchell Halliday, founder and CEO of Made by Mitchell, said: "LIVE shopping on TikTok has completely changed how we connect with our audience, especially during key shopping moments like Christmas. It allows us to bring the festive excitement directly to our customers, showcasing our products in real time, answering any questions, and offering exclusive deals that make Christmas shopping more interactive and personal. The level of engagement and instant feedback we get during these sessions is incredible - it's like having a direct line to our customers as they shop for gifts."

A bumper Christmas for LIVE shopping

LIVE shopping on TikTok Shop has rapidly gained momentum as a dynamic way for brands and creators to engage with audiences in real time. There are now over 200,000 active businesses on TikTok Shop in the UK -double the number from last year-as brands take advantage of the revenue potential of LIVE shopping and shoppable videos.

The number of daily LIVE shopping sessions in the UK has increased by over 64% in the last twelve months, with daily sales increasing by 93% over the same time period. This follows record breaking LIVE sessions earlier this year, particularly in the beauty category, including Made by Mitchell, which made over $1m in 24 hours, and P. Louise, which earned $1.5m in 12 hours in July.

As we enter the final weeks of the Golden Quarter, TikTok Shop is on track for its biggest Christmas season yet, driven by millions of consumers expected to shop on LIVE sessions throughout November and December. The Black Friday period alone is set to deliver triple-digit year-on-year growth on TikTok Shop.

Jack Timpany, E-commerce Activation Director for L'Oreal, said: "TikTok has become an essential platform for us to connect with beauty creators and fans and we're continuing to invest in our brand channels, creator partnerships and our storefront of TikTok Shop. We were proud to be the brand partner for TikTok Shop's first Super Brand Day in the UK, with that single activation helping us connect with beauty creators in the TikTok community. We're expecting to have a strong Christmas period, in no small part supported by the momentum we're seeing on TikTok Shop."

Jan Wilk, Head of Operations at TikTok Shop UK, said: 'For the last two decades, the fun and human interaction of traditional retail has been missing from online shopping, and I am proud to say that TikTok Shop has brought it back. LIVE shopping and video commerce with real creators and brands is the future, and we are looking forward to giving millions of shoppers that joyful, real-time interaction for our biggest retail moment at TikTok Shop to date'

TikTok growing as a performance marketing powerhouse for brands and retailers

TikTok Shop is not the only way the platform is helping brands achieve success this Christmas. TikTok projects a 58% increase in advertising spend in Q4 from retail and ecommerce brands in the UK, compared to the same period in 2023. This comes as advertisers are set to spend a record £10.5bn over the Christmas season, just under £4bn of which will be spent on online display ads, including social platforms such as TikTok, according to the Advertising Association and WARC.

New products such as Search Ads and Smart+ are expected to drive record sales on TikTok. Search Ads give brands control over how their content appears on the TikTok search results page, ensuring the right creative is served to the right users, whilst Smart+ automates the performance advertising process to maximise returns. TikTok's integrated advertising solutions are proving to be powerful drivers of sales growth, giving brands the ability to reach new consumers at key decision-making moments.

Advertising on TikTok is driving shopping behaviour, with 61% TikTok users having made a purchase either directly on TikTok, or online after seeing an ad on TikTok, according to Nielsen.

Sarah Hood, Head of Social for Waitrose, said: "We've gone all out this year with our 'Sweet Suspicion, A Waitrose Mystery' Christmas campaign, with a brilliant line-up of stars who are keeping customer guessing with our whoddunnit festive crime drama. For TikTok, we've created bespoke content and talent, recognising the value this channel brings for our brand in helping us reach new customers. We're already seeing some great results, driving awareness of our delicious range of festive food this Christmas among passionate foodies on TikTok."

Paul Mears, TikTok group vertical director of retail and ecommerce, said "For years we've been working to create an advertising and commerce ecosystem to drive real world impact for brands on the platform, and this year it feels like we've taken it to the next level. We've been working across 'the funnel' from LIVE shopping sessions, to entertaining brand building ads and performance based marketing campaigns, which combined, are like rocket fuel for retailers. We've been working on this ahead of Black Friday, and now we're set to go up a level during the holiday season."

TikTok Shop Trends Sleigh-ing This Season

Trending Categories and Products On TikTok in the UK This Christmas

1. Hair and Beauty: Beauty is booming on TikTok Shop this Christmas with a beauty item selling every two seconds. Shoppers are turning to TikTok founded beauty businesses, as well as big brands for the perfect stocking fillers. Sales for @madebymitchell's Curve Case Cream Makeup Palette have increased by 624%, @plmakeupacademy's Mini Makeup Mystery Bundle by 62% and @Wonderskin launched a TikTok first product called the 'For You Powder'
2. Perfumes: Fragrance is one of the most popular categories when it comes to holiday spending on the platform. Popular fragrances include 1 Million by Paco Rabanne, Prada Paradoxe and scents from Jean Paul Gaultier and Carolina Herrera. There's been a nostalgic revival of popular 90s fragrances on TikTok Shop on the lead up to this Christmas with perfume seller @perfumeplusdirect seeing purchases of Joop! Homme increase by over 380% this month, making it their number one best selling fragrance.
3. Pre-loved luxury: Top of wishlists this year on TikTok Shop are pre-loved luxury items with purchases increasing by almost 30% this month. The TikTok community are loving this smarter way to get a taste of luxury for less from trusted sellers, including @luxecollective@poshpawnbrokers and @cbestore.
4. Appliances: The Progress 4-in-1 Hot Chocolate Maker & Milk Frother is currently trending on TikTok Shop which has seen a 320% increase in sales over the past week. And it looks like air fryers aren't going anywhere and are at the top of wish lists for yet another year with the likes of the Tower 7.6L seeing an 119% increase in purchases over the last 7 days.
5. LIVE shopping: TikTok Shop have coined this Christmas to be all about LIVE shopping. Millions of shoppers will be tuning into LIVE shopping sessions to get inspiration and shop gifts for loved ones. This real-time interactive experience is an entirely new way to purchase, as viewers can ask questions and see live demonstrations of products in action from sellers and creators they trust. There are around 5,000 LIVE shopping sessions on TikTok Shop every day, where you can purchase Christmas presents for all the family.

Hashtags for holiday gifting inspiration

• #TikTokShopBlackFriday : This new hashtag, with over 1m posts in the last month globally, reveals a high interest in TikTok-exclusive Black Friday deals, encouraging users to find unique gift ideas.
• #ChristmasGiftIdea : With over 259K posts in the last month globally, this hashtag is a central hub for users looking to share and discover creative gift ideas, making it a must-watch trend as Christmas nears.
• #Christmas2024 : This seasonal hashtag continues to grow, encouraging users to share holiday-themed content and wishlist items that reflect Gen Z's evolving preferences.
• #TikTokShopFinds: This evergreen hastag has seen acceleration over the past month with 317K posts globally, showcasing the growing interest in TikTok shop products this Christmas.

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