"Amanda Parker, head of food for TikTok Shop, told Modern Retail at the Groceryshop conference in Las Vegas that while the platform initially had success with smaller entrepreneurs,major CPG players like Mars and Coca-Cola have joined TikTok Shop as an additional channel of commerce.There, food and beverage brands can introduce new flavors or new products, do R&D, or offer limited-time-only flavors - things that they may have historically done through a grocery partner."
"It's indicative of how, as the platform matures, TikTok Shop is working to onboard a greater variety of brands and help them grow through the platform. For example, it has added more established brands to the platform like Crocs and Pacsun. Now, it is trying to recruit more CPG brands by convincing them that TikTok Shop is a place where they can test new flavors or reach their super-fans. And, it's become an increasingly important platform for traditional grocers to make sense of what's trending."
"To be sure, TikTok is not a grocery business - it can't sell products like fresh meat or produce, for example. But, the company says it can help CPG companies determine which products to sell on TikTok or which new product launches may make sense there. TikTok says it can also guide food and beverage brands on how to work with creators or whether they should buy top-of-funnel ads."
TikTok Shop initially succeeded with smaller entrepreneurs, and major CPG players like Mars and Coca-Cola have joined as an additional channel. Food and beverage brands can introduce new flavors or products, conduct R&D, or offer limited-time flavors that previously moved through grocery partners. It is onboarding more brands and recruiting CPGs to test flavors. TikTok Shop helps CPGs determine which products and launches make sense and advises on creator partnerships and top-funnel ads. The platform mirrors traditional grocery merchandising tactics with digital equivalents to end caps and seasonal LTOs, though it cannot sell fresh meat or produce.
Read at Digiday
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