TikTok Shop promises to revolutionize Brazilian e-commerce and move R$39 billion by 2028

TikTok Shop arrives in Brazil today with the potential to transform national e-commerce, combining content and purchase in a fully integrated experience. According to Santander projections, the novelty promises to move up to R$39 billion by 2028, representing from 5% to 9% of Brazilian e-commerce and placing the platform among the 5 largest players in the sector. 

“It is a much more fluid and impulsive experience, which combines entertainment with” conversion, comments Rafael Kiso, founder and CMO of mLabs, the largest social media management platform in Latin America. “O TikTok Shop eliminates friction in the purchase journey. The user sees a video or a live, is interested in the product and buys right there, without leaving the app. Data from Santander and Itau BBA show that this process can take less than 7 minutes 7 IS the perfect combination of impulse and convenience”, explains Kiso.

Ecosystem in transformationKiso details the opportunities for different actors:

• Brands: “It is a race to occupy this new territory and build authority as soon as possible. Whoever arrives before can position themselves as a reference on the platform.”
• Agencies: “Agencies will also gain relevance, especially by helping brands recruit charisma salespeople to make lives and produce content adapted to the vertical, fast, direct format that works well on TikTok. In China there are agencies specialized only for this.”
• Influencers: “For influencers, a new avenue of monetization opens up with commissions for real-time sales. That is, it is not only about reach, it is about direct impact on sales

A new logic: social + live retailIn the end, TikTok is not just entering e-commerce, but merging social media with live retail. The founder of mLabs contrasts the model with competitors: “Free Market and Shoppe try live shopping, but do not have the organic fusion between social media and retail. Instagram, on the other hand, insists on taking the user out of the app (just when the rejection of ads in the feed only increases”.

“O TikTok is not just entering e-commerce. It is rewriting the rules by uniting discovery, entertainment and transaction in one place. The question is: who will master this new logic first?”, provokes Kiso.