If the retail world needed any reminder that cultural relevance drives conversion, look no further than TikTok. What began as a Gen Z playground for dance challenges has matured into a global trend machine with direct purchase influence, and it’s reshaping how retailers think about product, placement and promotion. TikTok’s impact on retail is no longer speculative – it’s commercial. Statista data shows that, in the US, 59 per cent of TikTok users report discovering new products on
cts on the platform, and 39 per cent say they’ve bought something after seeing it on TikTok. That’s not just influence, that’s intent.
Let’s start with the power of virality.
UK-based skincare brand The Ordinary’s AHA 30% + BHA 2% Peeling Solution went viral on TikTok in late 2020, leading to stock shortages across multiple markets and a sustained lift in sales through 2021. This wasn’t a planned media buy – it was organic, user-driven buzz amplified by algorithmic force. The retailer’s response? A smart pivot to embrace TikTok creators in its ongoing strategy.
In Australia, Chemist Warehouse is one of the savvier operators tapping into TikTok’s influence. Its ongoing partnerships with beauty influencers and branded hashtag challenges have helped position the discounter as more than just cheap medicine – it’s where Gen Z shops for skincare.
But it’s not just beauty driving the buzz. Last year, Aldi UK sold out of its Kirkton House Cast Iron Cookware – a budget-friendly dupe of high-end Le Creuset pots – within days after going viral on TikTok. The campaign wasn’t created by Aldi’s marketing team, it was powered by user reviews, kitchen hacks and aesthetic dinner-prep videos that landed on millions of For You Pages. Aldi responded with a savvy restock alert strategy, leaning into the moment and rewarding demand with supply.
Or take the spike in food trends led by the likes of Dubai chocolate and the Matcha trend. The food we eat, the ingredients that keep selling out and even the places we visit are being influenced by the platform. TikTok creators and the algorithm are dictating demand, often outpacing the ability of supermarkets and global supply chains to keep up.
The takeaway? TikTok is no longer just part of the media mix; it’s shaping merchandising decisions.
Even brick-and-mortar is feeling the shift. In-store displays with “As seen on TikTok” tags are fast becoming as crucial as price signage. Brands like Target in the US and Sephora globally are embedding TikTok trend zones in-store to blur the lines between online inspiration and offline conversion. Expect to see this arrive on Australian shores at scale within the next 12 months.
What makes TikTok different from other social platforms is its immediacy and unpredictability. Campaigns aren’t carefully scripted, they’re memetic, reactive, and consumer-led. For retailers, that means getting comfortable with decentralized storytelling. It also means rapid response capabilities: from nimble stock allocation to trend-driven ranging decisions.
The challenge now is not just to harness TikTok’s power, but to operationalize it. That could mean adapting your promotional calendar to sync with TikTok trends, building agile supply chains for quick-turn drops, or investing in creator collaborations that bring authenticity and cut-through.
The other piece of the puzzle is TikTok Shop. An integrated e-commerce feature within the TikTok app, it allows users to discover and purchase products directly through in-feed videos, livestreams, and creator profiles. Currently operational in parts of Asia, Europe and the Americas, it’s yet to launch in Australia. Reports suggest it’s only a matter of time, and given the power of the feature – Statista data shows that, in the US, TikTok Shop generated a gross merchandising value of $33 billion in 2024 – brands need to get ready for when it does. That means optimizing product listings and checkout processes for mobile shopping and developing a TikTok strategy.
One thing is clear: TikTok isn’t just where culture happens, it’s where carts get filled.
Further reading: Kate Spade CEO: ‘The power of TikTok for product discovery is incredible’