How is TikTok Helping the Cosmetics Industry Make Money?

TikTok works on a short video platform (like Vine) with a duration of 15 to 60 seconds per video where users are designated as "content creators" because they don't seem to need to follow a routine. This non-binding makes it impossible for TikTok to have a neat, beautiful, and professional interface like Instagram or focus on intensive content that requires a large amount of time to curate like YouTube. This instead gives the platform a lot of power with the ability to create trends.

Although TikTok does not restrict the user's style, the 15-second duration is the only challenge set for the platform's users. However, we as a species do like a challenge. The harder it is, the more there is a sense of accomplishment. Therefore, that short 15-second limit creates even more motivation for creativity. A hashtag, a hit tune, and a phone, TikTok users create a variety of engaging content that directly define new trends to entice latecomers to continue creating. 

Thanks to TikTok, cosmetic users now do not have to navigate through dozens of websites or watch many video reviews to get information about the product they are looking for. TikTok solves the problem of finding results immediately in the most intuitive form. For example, TikTok allowing viewers to see the direct effect of thick lashes curled after using Maybelline's new mascara or skin's improvement from The Ordinary's serum directly through a 15-second video. The more products that create a "wow" effect, the more popular they are on this platform, which has viral potential to create a special purchasing power that is difficult to replicate on any other existing platform.

After the success of Maybelline, The Ordinary or CeraVe, beauty brands across the globe are also taking the opportunity to include their products in the content chain that becomes prominent on TikTok. According to Glossy statistics, among the top 143 global beauty brands in the world, 15% of brands now own an official account on TikTok. This is an increase of 10% compared to the statistics in October 2019. Over time, this social platform is becoming an important part of the communication strategy of large corporations.

In addition to enhancing the way brands can market their products online, TikTok also allows beauty influencers (KOLs, influencers) to connect with their followers (and possibly even their followers, the potential customers) on a new level. Everything seems to be pulled together, more directly and frankly through the tabs and apps installed in the platform.

The central engine of TikTok is the “For You Page”, an algorithmic process that users see first when they open the app. Even if you haven't posted anything, haven't followed anyone, or liked a single video, you'll see a full page of diverse videos with thousands or millions of likes specific to each user.

Although TikTok is becoming the new "golden child" of the beauty industry, there are still many gaps that need to be filled and more potential needs to be exploited so that this application can better satisfy the needs of users. In particular, what TikTok is currently lacking is the integration of the ability to shop on the application itself. TikTok does not currently allow direct links to electronic websites and sales websites, so this platform is judged not as well equipped for monetization as compared to platforms like Instagram and YouTube. Currently, the only way to market and offer products through TikTok is through referrals.

However, with its resounding success as a new beauty marketing tool during the pandemic, things are gaining leverage to grow faster. TikTok has partnered with Shopify to allow vendors to sell directly on the platform through promotional videos with integrated online shopping capabilities. This also marks the transition to the worldwide commercial scalability of this application. So, if TikTok's pervasive power continues to increase, the app's multi-faceted development in the future is also full of promise.