NEW YORK — Recently, The Business of Beauty and TikTok Shop convened influential beauty industry leaders, investors, and market specialists in New York for a breakfast event focused on the evolving landscape of social commerce in the beauty sector. The discussions, held under Chatham House Rule, aimed to plan for the future of beauty commerce on social platforms.
By 2025, TikTok Shop has reported a staggering 120 percent increase in sales year-over-year. K-Beauty brands, such as Medicube, TirTir, Dr. Groot, and Dr. Melaxin, have leveraged a TikTok-centric strategy, not only amassing robust followings in the U.S. but also enjoying a remarkable 132 percent year-over-year sales growth on the platform.
These accomplishments signal a significant transition in beauty commerce. On TikTok Shop, the traditional sales funnel, which typically progresses from awareness to consideration to purchase, is collapsing into a single moment. Here, consumers can discover and purchase products directly within the app. As a result, the platform’s U.S. sales surged 500 percent in 2024 and doubled in the first half of 2025, establishing it as the eighth-largest beauty retailer in the U.S. and the fourth-largest in the UK, according to NielsenIQ.
As highlighted in The State of Fashion: Beauty report by BoF and McKinsey & Company, social commerce now accounts for a core sales channel for 31 percent of beauty executives, with an additional 21 percent utilizing it as a non-core channel. Yet, achieving success on TikTok Shop requires more than mere brand presence; it necessitates an astute product mix, strategic creator partnerships, and a sophisticated platform approach.
“Often, brands need to adopt a beginner mentality,” stated Ajay Salpekar, general manager of beauty at TikTok Shop, during his opening remarks. “The platform is continually evolving, and understanding how to navigate this new digital world is crucial for both brands and consumers.”
Alice Gividen, BoF’s director of content strategy, alongside industry experts from firms like TSG Consumer Partners, Euroitalia, Caudalie, and Procter & Gamble, exchanged insights on challenges and growth strategies within the beauty market.
Understanding the TikTok Ecosystem
One of the key takeaways discussed at the event was the unique three-sided marketplace of TikTok Shop, which integrates manufacturers, creators, and consumers. This distinct dynamic sets it apart from traditional retail environments. The younger demographics favor the powerful community and storytelling elements that resonate on digital platforms. “Brands with compelling founder narratives tend to engage audiences more effectively,” emphasized a representative.
A shift is also occurring regarding how brands view their marketing and commerce strategies. Many industry leaders agreed that encoding social commerce into the marketing mix is essential. “Platforms like TikTok are not simply sales tools; they also serve as marketing channels,” one expert noted.
In terms of product presentation, starting with a few standout “hero products” can serve as an effective entry point for brands venturing into TikTok Shop. Leveraging engaging visual content can create buzz around products, sometimes paving the way for unexpected ‘unsung heroes’ to shine, as participants shared experiences of their own bestsellers not translating to TikTok’s dynamic environment.
Embrace Authenticity in Storytelling
Authenticity is a cornerstone of success on TikTok. Collaborating with creators who genuinely connect with the product results in more impactful content. Many attendees cited the organic reach generated by genuine creator promotions, pointing to their ability to resonate with audiences authentically. “The effectiveness is more pronounced in natural storytelling rather than scripted promotions,” one attendee claimed.
Brands are urged to allow creators the freedom to express their unique perspectives rather than adhering to strict briefs, emphasizing a collaborative and authentic partnership dynamic.
Value Beyond Discounts
Several attendees expressed the challenge of maintaining premium pricing in an environment driven by the allure of discounts. “It’s vital to demonstrate tangible value, rather than relying solely on price reductions,” advised one executive. Innovating through exclusive product bundles or themed gift sets provides alternatives to traditional discount strategies.
Strategic Commitment is Key
Many industry leaders echoed the sentiment that a half-hearted approach won’t suffice on TikTok. “For real success, brands need to commit fully to understanding and utilizing the platform effectively,” one executive emphasized. This requires integrating e-commerce strategies while continually adapting to consumer trends.
As brands and experts continue to explore the nuanced world of TikTok Shop, the conversation emphasized the critical need for storytelling at every touchpoint to engage and captivate audiences effectively. As the industry evolves, those who embrace innovation while cultivating authentic community connections will likely lead the way in this new digital landscape.
