PepsiCo finds growth through TikTok Shop optimization
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.