Notable news emerged regarding the potential TikTok ban, positioning Instagram favorably for social commerce.
This, along with the fact that the TikTok Shop is beginning to stick could bode well for Instagram.
The rise of social commerce is clearly here, so a potential TikTok ban is an interesting moment for Instagram.
But let’s focus on the shop today…
TikTok Shopping is Becoming a Thing. Lending Support to Instagram’s Commerce Efforts
This week, TikTok has been making headlines following a vote in the house to essentially ban the app in the US.
The timing is particularly intriguing given the recent shift in consumer behavior. Credit card data indicates a growing trend in social commerce. As many are aware, this aligns with a major theme for myself and my firm (Avory), as we believe that commerce will increasingly gravitate towards platforms where discovery occurs.
Over the past 3-4 months, consumers who shop on platforms like Shein have been allocating approximately 23% of their budget to TikTok shops. With Instagram’s intensified efforts in this realm, we anticipate they are well-positioned to capitalize on this shift.
Twitter: @_SeanDavid
The author and/or his firm have positions in the mentioned companies and underlying securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
