So-called "shoppertainment", where content and commerce converge on a platform, has become the next era of online commerce, expected to be worth US$1 trillion across Asia-Pacific by 2025, says Sirinit Virayasiri, head of business marketing for Thailand TikTok.
According to a survey by Toluna, 97% of Thai users of short video platform TikTok responded during the sales season after watching advertising on TikTok. The research found TikTok users are 3.5 times more willing to spend 10,000 to 17,600 baht during the mega-sales season compared with non-TikTok users.
Ms Sirinit said 80% of TikTok users in Thailand shopped in TikTok shops during the mega sales seasons in 2022. The top three categories are fashion and accessories, beauty and personal care, and food and beverages.
The top drivers that fuel consumer purchases during mega sales are free delivery, coupons and discounts, and the ability to pay with cash on delivery, Ms Sirinit added.
She said: "TikTok is a unique platform where content and commerce seamlessly converges all within a single app, especially since the platform officially launched its TikTok shop feature last year."
With TikTok shop's seamless integration, consumers do not have to leave the platform to complete their purchase, a clear and easier alternative for 85% of consumers who switch apps during a purchase journey online, according to the "2022 Future of Commerce" study by TikTok and Boston Consulting Group (BCG).
Ms Sirinit said the company has more than 325 million people on the platform every month and it is empowering more than 15 million businesses across Southeast Asia.
The new online shopping trend of shoppertainment opens up immense opportunities at a time when an important shift in consumer demand space is happening.
According to research conducted by BCG, the shoppertainment trend will usher in a staggering $1 trillion value in business opportunities across Asia-Pacific by 2025, with $12.4 billion available for growth in Thailand.
According to BCG, 77% of consumer purchase decisions are affected by amusing content, while two in three users who are new to the brand make a purchase based on emotion.
As consumer expectations shift, the study found 60% of consumers are not in the mood to purchase after they see branded content. Some 34% of consumers feel sceptical about branded content, making them less likely to buy.
"Shoppertainment can help unleash brand potential," said Ms Sirinit.
Brands can better respond and be meaningfully connected to consumers by accentuating shoppertainment on TikTok, she said, as 70% of consumers trust the content on TikTok when making purchasing decisions.
Furthermore, one in four TikTok users consider buying on TikTok shops, as a consequence of entertaining content from creators, celebrities and brands.
"TikTok redefines Thais' shopping experience through shoppertainment -- combining TikTok's unique fun and entertaining content, followed by commerce -- to drive business outcomes and connect brands, sellers and creators with our community," added Ms Sirinit.
According to a recent study by TikTok and BCG, 81% of TikTok users in Asia-Pacific say video content influenced their recent purchase.
For instance, #TikTokMadeMeBuyIt, a powerful and well-documented cultural phenomenon which found its place online during the pandemic, has introduced to users new ways to discover new products on the platform. With over 60 billion views, #TikTokMadeMeBuyIt showcases consumers' needs that brands can tap into.
Ms Sirinit said TikTok has introduced a content maturity framework called "Recut – Remix – Reimagine" where existing creative assets for TikTok are used to recreate even more entertaining content through creative ideas using the power of TikTok.