TikTok, a global social networking service (SNS) platform with more than 1 billion users around the world, has stepped up to help Korean brands advance overseas. It is strengthening support for more domestic brands to move to the global stage by providing one-stop commerce solutions from artificial intelligence (AI)-based content production to purchasing conversion through TikTok shops.
“TikTok wants to actively participate in the Korean market,” said Matty Lin, head of TikTok Korea’s Global Business Solutions (GBS), who recently met with Mail Business. “We are focusing on helping K brands raise awareness and sell products in various markets around the world.”
TikTok Shop is a one-stop commerce platform that allows you to watch content, pay, and deliver. TikTok’s core competitive ‘For You’ feed algorithm is integrated into commerce so that users can be exposed to shopping content naturally and immediately purchase it.
TikTok is the only one that provides a one-stop shopping experience that can be bought today and delivered home tomorrow when you like the items in the video, said Matty Lynn, “TikTok’s mission is to inspire creativity and provide pleasure.” Shopping should also be an enjoyable experience in that extension,” he explained.
According to a survey conducted by TikTok with market research firm Kantar, consumers of entertainment apps have about 1.9 times higher purchase conversion rates compared to general users. This means that the convergence of content and commerce has a real impact on consumer behavior.
The TikTok shop, which was first introduced in 2021, is currently operating in 11 countries, including the United States, the United Kingdom, Vietnam, Thailand, and the Philippines. Although it has not been introduced to Korea yet, content commerce through TikTok is already becoming a daily consumption experience in Southeast Asia and North America.
Korean companies in various fields are also entering overseas markets through TikTok shops. “In the beginning, it was centered on K-pop, K-drama, and K-movies, but now it is expanding to K-beauty and K-food,” said Matty Lin, general manager. “In the U.S. and Southeast Asia, it is so influential that 70 to 80 percent of TikTok users say they find K-beauty and K-food for the first time on TikTok.”
Recently, TikTok has also simplified the process so that if only Korean subsidiaries are registered, they can sell products at TikTok shops in the U.S. TikTok shops, which previously had to meet complex requirements such as corporations, bank accounts, and addresses in the U.S., will be available only with Korean corporations, Korean passports, Korean addresses, virtual accounts, and three-party logistics services that can be linked in the U.S., allowing more Korean companies to use TikTok shops.
At the same time, TikTok also offers a wide range of related solutions. Representative examples are AI-based creative tool ‘TikTok Symphony’ and creator matching and collaboration platform ‘TikTok One’.
“The AI automation function allows us to simplify the entire process of subtitles, dubbing, and editing from the first script writing stage to actual production,” said Matty Lynn, general manager of TikTok Symphony.
The TikTok Symphony also provides a high-level technology that automatically changes the shape of the person’s mouth in the video to suit a foreign language. If Korean operators use TikTok Symphony, they will be able to easily change Korean videos into languages in Southeast Asia and North America and use them for marketing. This effect is revealed through the performance figures of Korean brands. Domestic cosmetics brand “Equalberry” achieved a 1.94-fold increase in sales through TikTok shops without initial investment.
[Reporter Ahn Seonje]
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