TikTok Becomes The New Luxury Shopping Paradise For Gen Z
TikTok store becomes a window to luxury fashion, but will it be the go-to luxury fashion destination for Gen Z fashion lovers? Let's take a look.
When discussing the top players in the fast fashion industry, Shein and Temu naturally come to mind alongside the burgeoning TikTok Shop, a prominent sales platform today. To stand out and captivate users, the app has upped its game, raising the maximum sales limit to nearly US$5,000. This expansion includes a diverse array of vintage and pre-owned luxury items sourced from verified sellers, injecting a vibrant allure into its offerings.
There's been speculation surrounding the interest of Gen Z TikTok users (comprising 63% of individuals aged between 10 and 29) in the platform's exclusive products. Vogue Business suggests that TikTok Shop's pivot from commonplace items like nutritional supplements and budget-friendly apparel to luxury goods is strategic, given Gen Z's pronounced inclination towards vintage merchandise.
In stark contrast, data reveals that Shein's typical customer is aged around 35, indicating a disparity in customer demographics and product preferences between the two brands.
Presently, TikTok Shop has expanded its luxury segment in the US and UK by collaborating with renowned luxury resale companies. Names like Luxe Collective, Break Archive, Sellier Knightsbridge, Sign of the Times, and Hardly Ever Worn It have found traction as content creators on the platform. This partnership facilitates the conversion of video views into sales, leveraging live demonstrations and product listings on personal profiles. Concurrently, TikTok Shop has raised the maximum sales limit and increased the sales fee rate from 2% to 8%, potentially nudging several fast fashion retailers towards exiting the channel while inviting used luxury resellers to join the fray.
Just as haul videos are a hallmark of Shein and Temu, content featuring treasures from the vintage market is gaining traction on TikTok. Enthusiasts avidly collect vintage cosmetics, accessories, and fashion pieces, with notable figures such as Mina Le, Erin Parsons, and Giulio Marchioni leading the charge. Consequently, "VintageTok" has emerged as a vibrant niche on the platform, with conversions from interest to purchase being remarkably feasible.
Since its debut on TikTok Shop last Friday, Luxe Collective, a second-hand luxury retailer, has swiftly moved ten items, including a Louis Vuitton Keepall and a Wight, each fetching £1,500, a Louis Vuitton Multi Pochette for £900, and accessories from Bottega Veneta and Fendi, priced at £400. The brand's live broadcasts garnered over 30,000 views in total. While it's premature to predict TikTok Shop's potential as a favoured vintage shopping hub for Generation Z, the initial signs are promising, giving us reason to anticipate positive outcomes in the future.
