Beyond Location, Beyond the Funnel: Navigating TikTok-powered commerce

For generations, retail transformation has been defined by shifts in location. From the rise of the high street to the dawn of ecommerce and the mobile revolution, social and technological advancements saw the industry adapt to where consumers chose to shop. But we stand at the precipice of a far more profound change, one that transcends the mere physical or geographical.

Today, the retail revolution is about behaviour. It's about how people shop, and what truly drives their purchase decisions in a world increasingly shaped by platforms like TikTok. The linear marketing funnel we've long leant on to plan and deliver against our business goals is fracturing, replaced by a dynamic, non-linear journey deeply interwoven with culture.  

Are you ready to navigate this new landscape, or risk being left behind? 

Let's embrace non-linear, culturally-driven commerce

For decades, the marketing funnel provided a predictable framework, with clear touchpoints to transact. But this linear model no longer reflects the reality of modern shopping. Today's consumer journey is non-linear, immersive, and fundamentally culture-driven. Shopping is experience; a discovery, often sparked by moments of serendipity and fuelled by cultural currents.

Clinging to old ways simply won't cut it. So we need to understand the forces reshaping consumer behaviour, and at the heart of this seismic shift lies TikTok.

Enter TikTok

TikTok sits, or rather fizzes, at the epicentre of the commerce revolution. It's the birthplace of a fundamental rewiring of consumer behaviour. Here, we're witnessing a transformation in how people discover, evaluate, and ultimately purchase products. The core principles of the old marketing playbook are being torn up, replaced by something far faster and community-centric.

And with the commerce ecosystem on TikTok already established and maturing, the question isn't how brands and retailers keep pace, but how now to get ahead. Some brands already grasp this, innovating and adapting to lead in this new landscape. Others hesitate, clinging to outdated strategies and risking being left behind.

Serendipitous discovery & community validation

Think about shopping in 2025. Increasingly, it's integrated, almost unconscious, happening as we live our lives. Especially within immersive environments like TikTok. Here, commerce is no longer a pull economy, where brands need to tug consumers closer to their products and the point of purchase. Instead, it’s a push environment where products are proactively presented through hyper-relevant content dished up by a sophisticated recommendation engine.

Remarkably, 64% of TikTok users have discovered new products and services on TikTok in the last month (vs. 56% av. across other platforms), serendipitously discovering and purchasing products they weren't even actively searching for. This is the power of the ‘For You Page’, an endless scroll of personalised discovery, where users are spending up to a movie's worth of time each day. 

But discovery is only half the story. The ‘why’ of purchase has also fundamentally shifted. Today, shopping is a community-driven activity. Purchase decisions are shaped by conversations, peer recommendations, reviews, and crucially, by authentic creator content. Creators are the new trusted voices, bridging the gap between brands and consumers with genuine endorsement. In this new landscape, trust is the ultimate currency, and social proof on platforms like TikTok is more powerful than any traditional advertisement.  

The #TikTokMadeMeBuyIt effect

The convergence of instant discovery and community validation has created the powerful #TikTokMadeMeBuyIt effect. The journey from inspiration to purchase collapses into a moment.  Unvarnished, entertaining content showcasing genuine product experiences ignites explosive demand. And brands that understand and amplify this phenomenon are turning fleeting hype into enduring mega-sales movements. 

 

@lindseyharbison I couldn’t resist! I LOVE the floral! 💖✨ #sanantoniotx #cupcollection #stanleycup #tiktokmademebuyit #tiktokmademebuythis #cupaddiction ♬ RABBIT HOLE - Qveen Herby

 

The Stanley cup, a humble, reusable water bottle from 111-year-old American brand is a great example of this phenomenon. Gaining massive popularity through TikTok, the #StanleyCup hashtag now has 7.2 billion views worldwide. Stanley's sales reportedly went from $70 million in sales in 2020 to $750 million as of 2023. Matt Navarro, President of Stanley 1913, stated in September 2024, "we’re coming off our largest month in history. We’ve had four years of record-setting growth." All this fuelled by entertaining content that collapses the purchase cycle, rooted in the authentic advocacy that users trust on TikTok.

Trends as ignition, culture as fuel

Trends undoubtedly matter on TikTok – they are the sparks, the cultural ignition points. But they are not the whole story. Discovery, community, and creators combine to fuel viral demand, with trends acting as the initial spark.

However, sustainable success demands a robust cultural strategy. Brands must embed themselves within the cultural fabric of the platform, becoming part of the conversation, not just chasing fleeting viral moments. Winning brands engineer momentum through a strategically layered approach: organic discovery, a deeply committed cultural strategy, and precision-targeted paid media.

This cultural focus has profound implications for all marketing channels, even paid media. The fundamentals are being challenged; relevance, not just reach, is paramount. Hyper-relevance and value delivery are the keys to impactful paid media in the age of TikTok.

The power of culturally embedding extends beyond riding trends. Because the platform isn't simply driving what consumers buy now, in the moment, driven by ephemeral hype... but what they shop next, shaping future consumer desires. 

Consider #BookTok, which revitalised publishing and made TikTok the discovery engine for a new generation of readers. Or how about Brat, a cultural aesthetic born on TikTok that fashion and beauty brands raced to embrace. Or #CleanTok, which reshaped consumer behaviour and even influenced product innovation at global giants like Unilever.

Brands that thrive on TikTok are proactive cultural participants, embedding themselves in the conversation, shaping desire, and defining the next wave of retail movements.

The central shopping hub & the evolution of commerce

For consumers, TikTok has become a central hub in the shopping journey, from initial spark of discovery to validation and purchase. Our research has shown, 2 in 3 discoveries made on TikTok were intentional. It's at the heart of modern shopping, driving impact and commerce across all channels - on and offline.

Fascinatingly, serendipitous discovery and intentional search converge on TikTok. It’s becoming the go-to discovery engine for the next generation, where inspiration meets validation. And increasingly, it's becoming the point of purchase itself.

TikTok Shop, Live Shopping, and Shoppable Video are rewriting the rules of retail within the platform. TikTok Shop, in particular, is experiencing explosive growth, with Live Shopping capturing the energy of in-person retail online, and Shoppable Video compressing the purchase journey to the speed of thought.

AI, automation & human creativity

What we've seen to date on TikTok is just the beginning. Customer expectations are evolving at warp speed, and marketing is becoming more complex - we know this. And so, practical, innovative, and easy-to-use solutions are essential to power brand and retailer growth in the times ahead.

AI and automation are no longer futuristic concepts, but essential tools for navigating this new, restless landscape, which is why we're so excited about the potential of TikTok's AI-powered automation solutions, Smart+ and GMV Max, to empower marketers to move faster, work smarter, and scale their impact and ROI, freeing them to focus on strategy and creativity.

However, technology alone is not the answer. Human creativity remains paramount.  Success on TikTok requires creative that is native, relevant, culturally attuned, and constantly evolving. Here, Symphony Creative Studio, TikTok's AI-powered creative suite, is designed to empower brands to meet this creative challenge head-on, amplifying human creative vision at scale, not replacing it.

Shaping the future of commerce on TikTok

Every major shift in commerce follows a pattern: trend -> expectation -> new normal.  We are living through such a moment now. Leading brands are becoming cultural forces, shaping demand and experiences.

The question is not if commerce is changing, but how quickly will you adapt? 

TikTok is a sponsor of Leadership Summit 2025 - find out more about the event here.