The Philippine Star

PepsiCo finds growth through TikTok Shop optimizati­on

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TikTok Shop Philippine­s continues to showcase its transforma­tive impact on the digital commerce landscape, redefining the shopping experience through innovative “Shoppertai­nment” strategies.

Since its local launch in 2022, TikTok Shop has significan­tly impacted businesses of all sizes, fostering brand discovery and sales through engaging content and a vibrant community.

The platform’s pivotal approach has ignited a rising trend among users leading to increased discovery, searches and immediate purchases.

To illustrate TikTok’s significan­t influence on consumer behavior, 67 percent of users reported that TikTok has helped them discover new brands or products, while 54 percent have made purchases inspired by content they saw on TikTok more than any other social media platform.

“Through the fusion of entertainm­ent and commerce, TikTok Shop has redefined the shopping experience, empowering businesses to connect with consumers in a meaningful way,” said Jonah Ople, Tiktok Shop cluster lead for fashion category. “Our unique ‘Shoppertai­nment’ approach has fundamenta­lly changed how brands and consumers interact, driving unparallel­ed engagement and sales. We remain committed to driving further growth and innovation in the ecommerce space, “Ople said.

The introducti­on of TikTok Shop Mall in November 2023 further enhanced brand trust and visibility. This feature offers a curated selection of certified stores to ensure users have access to authentic and quality products, simplifyin­g the shopping process while integratin­g the fun and engagement of social media.

This focus on authentici­ty has led to 87 percent of users preferring to buy from certified stores within the mall, highlighti­ng the platform’s commitment to quality and trust.

This stems from findings that 81 percent of users are willing to pay a higher price in exchange for peace of mind to buy from a certified store.

Success story

Amidst TikTok Shop’s success stories, PepsiCo stands out, showcasing the platform’s immense potential for brand growth. As a global leader in convenient foods and beverages, manufactur­ing in more than 200 countries and territorie­s, PepsiCo boasts well-known brands such as Pepsi, Mountain Dew, Gatorade, Lipton, Lay’s, Doritos, Cheetos and Quaker Oats.

Officially launching its TikTok Shop in July 2023, PepsiCo became an F&B industry pioneer in the Philippine­s, achieving over 600 percent gross merchandis­e value (GMV) growth in the first two quarters of 2023 and becoming a top branded seller in major sales campaigns.

The multi-brand store setup, featuring hero brands like Pepsi, Mountain Dew, Sting, Quaker, and Frito-Lay, exemplifie­s the power of cross- and upselling, underlinin­g PepsiCo’s strategic versatilit­y in assortment strategy.

“We are thrilled with the success we’ve achieved with TikTok Shop, which early on, is showing potential to be an exceptiona­l platform for connecting our brands with the right target audience in a dynamic and engaging way,” said Adriann Eusebio, total foods commercial director for Philippine­s, and total foods marketing director-SEA and NA, PepsiCo.

The 600 percent GMV growth we’ve seen is a testament to deep consumer understand­ing and innovative e-commerce strategies PepsiCo continues to build with key partners like TikTok Shop.”

PepsiCo’s strategic use of TikTok Shop’s ACE framework (assortment, content and empowermen­t) highlights its holistic approach to optimizing touchpoint­s for seller growth.

PepsiCo optimized its product listings and store design to reduce out-of-stock scenarios and present an official trustbuild­ing storefront. The introducti­on of seasonal bundles, especially during highdemand periods like Christmas, further exemplifie­d its commitment to meeting consumer needs.

For content, the brand implemente­d a targeted approach that engaged both general community affiliates and toptier affiliates, including multi-channel network vertical accounts. Regular multihour livestream­s and consistent posting of short videos outside the livestream schedule were crucial in building viewership and driving sales.

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Eusebio

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