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How Tik Tok is tapping into Generation Z - and why luxury brands are jumping on board

Commercial Viability

Now that TikTok is a force to reckon with, many luxury and fashion brands are trying to tap the spending power of youngsters who are hooked to the addictive app. Recently Mac Cosmetics launched an online challenge, encouraging users to transform and showcase their looks using their products. Ralph Lauren and Burberry managed to garner around a billion views for their respective TikTok challenges.

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How Tik Tok is tapping into Generation Z - and why luxury brands are jumping on board

How Tik Tok is tapping into Generation Z - and why luxury brands are jumping on board

https://www.telegraph.co.uk/luxury/technology/tik-tok-tapping-generation-z-luxury-brands-jumping-board/

telegraph.co.uk

5

Key Ideas

TikTok

TikTok is a breakthrough social media platform with millions of mostly young users worldwide, who share short videos and funny clips with matching music. 


Lately, its popularity has skyrocketed, with artists like Khloe Kardashian, Ariana Grande and Britney Spears taking on to the platform. The Chinese App reached 1.5 billion downloads late last year and has caught the attention of brands around the world.

Gen Z

The appeal of TikTok is mostly among Gen Z, who love music, weird behaviour, humour and fashion. They love the blend of a social media network which is focused on consuming and creating viral content, along with catchy music.

Worth Billions

TikTok, whose Chinese owners are worth billions now, wasn’t the first-of-its-kind app but became a runaway success due to its unique format. Music biggies became early adopters of the TikTok format, using creative techniques to magnetically lure viewers and ensure it goes viral.

Commercial Viability

Now that TikTok is a force to reckon with, many luxury and fashion brands are trying to tap the spending power of youngsters who are hooked to the addictive app. Recently Mac Cosmetics launched an online challenge, encouraging users to transform and showcase their looks using their products. Ralph Lauren and Burberry managed to garner around a billion views for their respective TikTok challenges.

Scouting Talent

TikTok is a huge social media space to scout new fashion and modelling talent, as it provides a glimpse at the personality of the rising star and not just a pretty face. The number of followers and the search buzz the TikTok artist creates can be easily measured.

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Anti-Social Social Media

Studies show that the younger demographic wants restricted, private, secure and exclusive networks which cannot be thronged by unwanted people, like their parents.
These exclusive online social ...

Private Messaging Campfire

Private messaging services like Facebook Messenger and Whatsapp are where private interactions happen and people are comfortable sharing details in private group messaging.
There are new applications like Tex-Rex, The Infatuation, or Community which are helping brands penetrate this private space.

Micro-Communities Campfire

Micro-communities are platforms where people gather around shared interests, beliefs or passions. Some examples are Facebook Pages and Groups, Instagram Stories, Slack and Youtube.

Brands can tap into this by partnering with influencers who have the kind of demographic they are targeting.

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TikTok

TikTok is reportedly 500 million users strong. It’s been a while since a new social app got big enough to make nonusers feel they’re missing out from an experience.

TikTok is an app for...

TikTok "tools"
Video creators have all sorts of tools available.
  • Filters as on Snapchat.
  • The ability to search for sounds to score your video.
  • It provides extensive reasons and prompts.
  • Hashtags play a large role as a functional organizing principle. 
  • It nudges you and makes it easy to come up with material to post.
  • Users are encouraged to engage with other users in two ways: Through "response" videos and through "duets" where a user replicates a video and add themselves alongside.
Fundamentally different

TikTok has stepped over the point between the familiar self-directed feed and experience based on algorithmic observation and inference. When you open the app, you don't see a feed of your friends, but a page called "For You" - It's an algorithmic feed based on videos you've interacted with or just watched.

It's not full of people you know or things you've explicitly told it you want to see. It is constantly learning from you and builds up a model of what you tend to watchIn short, it is like an Instagram centered entirely around its "Explore" tab.

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An old concept

Beauty supplements aren’t a new concept. We've been able to buy hair and nail formulas for decades at the drugstore.

The supplements, from vitamin ingredients like biotin, zinc, folic ac...

The beauty supplement market

Although beauty supplements were a small part of the beauty industry previously, they are now becoming increasingly popular. The global beauty supplement market is growing rapidly and is expected to reach $6.8 billion by the end of 2024.

A survey of buyers revealed that supplement brands, not skin care or makeup brands, are most likely to be picked up by retailers, as

beauty supplements have become hope in a bottle.

Marketing supplements

The concept may not be new, but the techniques used to market supplements are.

In 2013, companies realized they could make use of social media to promote their supplements as youthful and fun.

One of the attractive qualities for supplements is a strong engagement on social media, with packaging designed to be super-shareable.

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Instagram grabs your attention

For the most part, people on Instagram seem positive and content. They are earnest and sincere. 

But, scrolling through Instagram can quickly turn to an hour, which can feel like...

Instagram subculture

Following a genre on Instagram can present a wealth of ideas. The algorithm drives users toward content similar to what they've seen or liked. However, this can lead and encourage users toward extremities. 

For instance, if you are following fitness gurus or sponsored athletes. Then add some photo-editing to alter the body-image you want to project. At the same time, the algorithm continues to feed you with what you like or want until your feed becomes a mosaic of increasingly extreme exercisers.

A form of manipulation
  • Instagram is in the business of data-collection and media selling. It's estimated value is more than $100bn (£77bn).
  • Third-party indexing tools glean data from what is posted and sell it in the form of brand analytics, as information for governments, security and surveillance firms, and corporations.
  • Images posted to Instagram are used to train its proprietary image-recognition software.
  • Instagram follows your movements across the Internet, and you find hints that it is stalking you. 

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Influencer industry

The influencer industry has operated in boom times. As more Americans have taken their cues from social media about where and what to buy, brands started to use their marketing budget on influencer...

Reason for the negative impact
  • There is less money to go around. Since March, about a third of influencers were already seeing fewer collaborations.
  • This is also an awkward time to advertise, while so many are unemployed or facing a life-threatening illness. Brands don't want to alienate their market.
  • Some retailers are doing better, while other online retailers may not last. Categories like fashion, beauty, and luxury will likely suffer first and hardest.
Broad branding campaign

If a recession brings shopping to a standstill, marketers may not return to the type of broad branding campaign currently used in the influencer world.

Marketers are still in demand, but brands may demand evidence that the influencers give them sales, not just exposure.

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“Those who tell the stories rule the world.”

Native American proverb
Workers and Leaders Need To Tell Good Stories

As freelancing is becoming common, people with powerful personal brands have a leg up on getting jobs and being promoted. And personal brands are built on, among other things, telling and sharing great stories.

Stories help us hold attention, remember and persuade. Savvy leaders tell stories to inspire and motivate us as they understand that “what you say” is often moot compared to “how you say it.” 

Businesses Need To Tell Good Stories

Most CMOs think content is the future of marketing and that branded content is superior to PR, direct mail, and print advertising.

As the people get used to interacting with companies and most corporations start thinking of themselves as publishers, the defining characteristic among the successful ones will be the ability to not just spew content, but to craft compelling stories.

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Dating In The Times of Pandemic
Dating In The Times of Pandemic

As offline activities for dating couples have to be avoided, the dating brands of the internet have adapted themselves fast to accommodate virtual activities and in-build video chats. 

Video Dating Or No Dating

Apps like OkCupid and Tinder see a decent surge in daily conversations in the last month. Ironically, the feature that they have recently introduced, Video Dating, wasn’t asked by anyone before the pandemic, as everyone preferred real dating. Now, due to everyone in lockdown, it is the most used feature and has shot up the app engagement.

Video dating, which has witnessed a 200 percent increase in OkCupid, lets the dating couples check the ‘vibe’ of their partner, and decide if the person can be dated in future.

Digital Date Ideas

Some of the interesting digital date ideas that are proposed in the dating Apps:

  • Build a playlist together
  • Watch TikTok Videos, trying to understand Millennials and Gen Z
  • Draw pictures of each other
  • Tackle a crossword puzzle together
  • Watch an old concert on youtube together
  • Read the same book and discuss it on video chat.

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Enterprization of The Consumer

Today's technology-enabled world offers many ways to capitalize on creativity: creators are now earning individually, monetizing their unique skills. People are turning their passion, the things th...

Evolution of The Passion Economy
  • On-demand marketplaces established, in the last 10 years, new ways for people to make money - workers could easily monetize their time in specific, narrow services (food delivery, parking, or transportation). 
  • These marketplaces automated the matching of supply and demand, as well as pricing and used platforms that were convenient for both the user and the provider.
  • Specific platforms provided a path to self-employment for millions of people and they also homogenized the variety between service workers, prioritizing consistency and efficiency. 
The Passion Economy

New digital platforms are enabling the 'passion economy', where individuals with certain creative skill sets can earn a livelihood while doing the very thing they are good at. These platforms provide:

  • Greater ability to build customer relations. 
  • Increased support for expanding their business. 
  • Better tools for standing apart from the competition.

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