Where Will Gen Z Social Shoppers Go If TikTok Is Banned?

Shopping habits have changed a lot since the Covid pandemic. For younger people, the difference between social media and online shopping has blurred. With TikTok becoming super popular, a new trend called #TikTokMadeMeBuyIt started. The hashtag has been used over seven billion times, showing how closely social media and shopping are linked now.

The big question now is: What happens if TikTok gets banned in the US? This could leave many young shoppers looking for new ways to buy things online. While Facebook and Instagram could be options, there’s still a lot of uncertainty. The way we shop is changing fast, and the future is wide open.

The Rise of Social Shopping

Shopping habits have evolved significantly since the Covid pandemic. The lockdowns blurred the lines between social media and e-commerce, particularly for younger shoppers. Restricted from in-person shopping and with TikTok downloads skyrocketing, a new trend emerged: #TikTokMadeMeBuyIt. This hashtag, where users post purchases influenced by TikTok recommendations, has been used more than seven billion times. It highlights the strong link between social media and shopping in today’s digital age.

TikTok’s Influence

According to Lilia Souri and AJ Pulvirenti, co-hosts of the marketing podcast “Gen Z on Gen Z,” TikTok stands out for their generation. “It’s become one of the biggest because of how advanced the algorithm is,” says Lilia, 27. “You can purchase a product directly on the platform, and then continue scrolling, in a cycle of watch, shop, repeat,” adds AJ, 25. TikTok’s seamless integration of entertainment and shopping has made it a dominant player in the market.

The Potential TikTok Ban

Despite TikTok’s strong position, its future in the US is uncertain. The app could be banned unless its Chinese parent company, ByteDance, sells it. This raises questions about the future of social shopping on the platform. Jasmine Enberg, a chief social media analyst, notes that Facebook remains a major player in social shopping, mainly through Facebook Marketplace. However, TikTok leads in the percentage of users who make purchases, with 40% of US users expected to buy something on the platform this year.

Competition Among Platforms

Amazon has also entered the social shopping arena with its Consult-a-Friend feature, which allows customers to ask friends for advice while shopping. However, AJ Pulvirenti is sceptical. “When a platform just tries to replicate something from another platform and doesn’t offer anything very new or intriguing about it, it’s not going to make people feel inclined to switch,” he says. Data suggests that Gen Z spends around two hours a day on TikTok, compared to less than ten minutes on Amazon.

TikTok’s Experience in Indonesia

In Indonesia, TikTok’s e-commerce service initially thrived, making it one of the app’s biggest markets. However, government regulations to protect local retailers led to the temporary closure of TikTok Shop, which was a major setback for sellers like 26-year-old Evo Syah. “It’s hard for me, but what I can do?” he recalls. TikTok later invested $1.5 billion in Indonesia’s largest e-commerce platform, Tokopedia, allowing businesses to return. However, sales did not fully return to previous levels.

Livestream Selling

Livestream selling is popular in Asia but has not gained much traction in the UK and US. Jasmine Enberg notes that the commerce landscapes are different. However, in both Indonesia and the US, TikTok Shop has been crucial for small and local merchants. “Many of them don’t really have another place that is as powerful as TikTok,” she says. This indicates the platform’s significant impact on local businesses.

Potential Impacts of a TikTok Ban

Looking ahead, a potential TikTok ban in the US would have significant repercussions for social shopping. Instagram Reels might become the go-to platform for displaced TikTok users. However, it’s also possible that new apps could emerge to fill the void. Gen Z podcast hosts Lilia Souri and AJ Pulvirenti believe that even if TikTok is banned, the shopping behaviours it fostered will continue. “Those behaviours are still going to exist and they’re still going to thrive,” says Lilia. “I think this next big thing has yet to be created,” adds AJ.

Conclusion

Although the social shopping landscape is shifting, the integration of social media and e-commerce is here to stay. Platforms like TikTok have profoundly changed how people shop, making it unlikely that this trend will disappear. The future may see new platforms or features, but the core behaviour of blending entertainment with shopping is set to continue.