In the midst of the debate in Washington about whether TikTok should be banned if its Chinese owner doesn’t sell it, there is a particular group keeping a close eye on the situation: the numerous brands in beauty, skin care, fashion, and health and wellness industries that have utilized the video app to increase their sales.
Youthforia, a makeup brand with over 185,000 followers on TikTok, is considering shifting more marketing efforts to platforms like YouTube and Instagram. Underlining, the company behind the popular brand Nailboo, had plans to use TikTok for a product launch with a major retailer in August but is now reevaluating. BeautyStat, which sells skin care products on TikTok Shop, cannot even imagine the platform disappearing.
“TikTok is just too big, especially in beauty and certain industries, for it to vanish,” stated Yaso Murray, BeautyStat’s chief marketing officer.
Companies and creators have long been aware of the potential risks associated with TikTok. However, these concerns have become more tangible since the House passed a bill that would ban TikTok in the U.S. unless its owner, ByteDance, sells it. (The bill’s progress in the Senate has slowed since the vote last week.)
Some lawmakers in Washington view TikTok as a platform for Chinese government spying, while parents are concerned about its impact on their children. Nevertheless, many companies, both large and small, attribute TikTok and its influencers for exposing their products to potential customers, particularly younger audiences.
Retailers like Sephora, Walmart, Target, and Amazon have also benefited significantly from TikTok, according to Razvan Romanescu, CEO of Underlining and 10PM Curfew, a company connecting content creators with brands.
“If something goes viral on TikTok, they sell out,” Mr. Romanescu explained. “The entire ecosystem thrives on the discoverability that TikTok offers.”
For many brands, TikTok has become a crucial component of their marketing strategy and sales growth. This is partly due to the easily digestible short videos that consumers enjoy and the relatively low cost of marketing on the platform for smaller brands. TikTok Shop, launched last year, has gained popularity among beauty and fashion brands by enabling direct in-app purchases.
“Prior to Covid, the beauty sector was relatively stagnant, growing only a few percentage points annually,” noted Anna Mayo, VP of beauty and personal care at NIQ, a research firm. However, during the pandemic, TikTok beauty and skin care videos experienced explosive growth due to increased consumer engagement and popularity of Zoom calls.
“Since then, the beauty industry has seen continuous growth driven largely by TikTok,” Ms. Mayo added.
Individuals on TikTok, who are more relatable to viewers than traditional celebrities, can showcase new products or clothing items and provide quick how-to videos on various topics such as skincare routines. TikTok has become a go-to platform for some consumers when shopping online.
“The first video was a makeup tutorial demonstrating how to flawlessly cover acne using three products,” shared Mikayla Nogueira, a popular TikTok influencer. “In just 60 seconds, you could learn a new skill.”
Ms. Nogueira initially turned to TikTok during the pandemic when her university closed, and she now collaborates with beauty and skincare brands with her 15.5 million followers.
While larger companies have the budget to market across multiple platforms, TikTok offers a more cost-effective advertising option compared to platforms like Google and Meta (Instagram’s parent company).
“For a direct-to-consumer business like ours, the platform is very unique,” said Nadya Okamoto, founder of August, a company promoting organic menstrual products through TikTok videos since the summer of 2021.
TikTok’s “For You” feed continuously exposes August’s videos to new consumers, providing a different reach compared to followers on other platforms like Instagram. Additionally, the platform allows Ms. Okamoto to create content in-house without hefty advertising expenses.
“Other brands are spending hundreds of thousands of dollars monthly on advertising, while we spend significantly less,” she highlighted.
When asked about a potential TikTok ban, Fiona Co Chan, CEO of Youthforia, expressed uncertainty about finding a replacement platform with a similar impact.
Frida, a brand focusing on baby and postpartum products, utilizes TikTok to discuss topics that may be considered taboo on other platforms, according to founder Chelsea Hirschhorn. While Frida has a substantial TikTok following and viral videos, Ms. Hirschhorn remains cautious about TikTok’s future and ensures diverse marketing strategies beyond the app.
“Brands need a solid marketing plan across various media channels, both traditional and emerging, to navigate potential challenges,” Ms. Hirschhorn emphasized.
While some companies prepare contingency plans for new products, others hope legislators will not ban TikTok.
At BeautyStat, Ms. Murray acknowledged the potential impact of a TikTok ban on sales and stressed the importance of diverse marketing strategies to withstand any disruptions.
