Cracking TikTok: What FMCGs need to do to win

TikTok Shop FMCG strategy summary

• Focus on three hero SKUs and TikTok-exclusive bundles for launches
• Shoppable videos drive 70-80% of FMCG TikTok shop sales
• Live shopping enables real-time questions builds trust and urgency
• Creators outperform brands with authenticity influencing 71% of purchases
• Showcase shop tab drive repeats using personalised algorithm trends

TikTok is dominated by Gen Z users, which can make the platform feel daunting for older audiences.

What exactly is a ‘Live’ or a ‘Story’? And what about a ‘Duet’, a ‘Stitch’ or an ‘FYP’? We can help with the last one – it’s a ‘For You Page’, curated by TikTok for individual users.

If TikTok itself feels intimidating, imagine how an FMCG e‑commerce manager feels when asked to sell food and drink via the platform’s own sales channel, TikTok Shop.

Fear not, we’re here to tackle the big questions: from which food and drink products will resonate most with its audiences, through to which strategies actually work on the platform?

Product strategy: What to sell on TikTok Shop?

First things first. For FMCG brands looking to sell on TikTok, which food and drink products should they be putting forward?

Focus on a maximum of three “hero” SKUs, advises Ema Delacote, business development manager for FMCG at TikTok. “Ask yourself: why buy this on TikTok and not elsewhere?”

This last point is important. The platform can work well if used as a way of introducing a brand-new product or brand to a potential customer. And offering a direct-to-consumer channel can help retain them.

“Create TikTok-exclusive SKUs,” says Delacote, whether that be limited-edition bundles, discover packs, or flavour mixes – take the time to optimise offerings for new shoppers.

Once the product’s been decided, it’s time to focus squarely on content. “Post frequently, work with creators, and finally, work on promotions,” she says. “TikTok users love a deal. Campaigns drive urgency and trial.”

4 key ways to sell on TikTok Shop

So let’s move on to the ‘how’. There are four key ways for FMCGs to sell their wares on TikTok Shop.

1. Shoppable videos are the most important lever for food and drink brands, driving around 70-80% of FMCG sales on the platform. Shoppable videos look like normal TikTok content, but are identified by a basket icon. Whether posted by brand accounts or content creators, these videos should focus on the product itself, including pricing, usage, benefits, and education.

Shoppable videos are a non-negotiable, stresses Faisal Al-Sabti, new business lead for FMCG at TikTok. “You must do shoppable videos, and creators will drive the majority of them.”

2. Live shopping is another avenue for FMCGs on TikTok Shop. For the social media platform, it’s a “major USP”.

Lives work by allowing for two-way communication. Brands can answer user questions in real time, and create urgency because they’re time-limited. “Lives work particularly well for complex products,” says TikTok’s Al-Sabti. “Being able to talk through concerns, in real time, builds consumer confidence.”

3. Showcase and 4. Shop Tab both help drive repeat purchases. According to TikTok data, a consumer’s first purchase is likely to come from Shoppable Videos or Live Shopping, but then Showcase and Shop Tab take over.

Both offer a more traditional e-commerce experience, powered by the social media platform’s algorithm. “Everyone’s Shop Tab looks different,” explains Al-Sabti. “It accounts for around one-third of sales, especially during campaigns.”

Insider tips and tricks for winning online

There’s more to strategy than simply selecting a TikTok Shop format, and data reveals which tips and tricks can help FMCGs set themselves apart online.

Creators, rather than brands themselves, drive the most sales on TikTok Shop. The social media platform facilitates collaborations between brands and creators, and suggests FMCGs offer up their campaigns to all affiliates (eligible creators with 5,000 followers or more), rather than target specific creators. “The algorithm rewards it,” reveals Al-Sabti.

Ensuring creators are authentic is another non-negotiable. The vast majority of TikTok users find creator content believable, with 71% saying authenticity motivates purchase. In fact, mid-tier and long-tail creators often convert better than big creators, because they feel more relatable, explains TikTok’s Delacote.

And finally, brands can use TikTok Shop to help develop product strategy. Supermarket Lidl is a case in point. The low-cost retailer launched a TikTok-exclusive fitness box on the platform, made up of high-protein products, which sold out in 18 minutes.

Next up, it launched a limited run of 6,000 Dubai Style Chocolate bars. Selling at a rate of 72 bars per minute, all bars were sold out within 90 minutes.

Both of these instances tell Lidl there’s real demand for these offerings. In the case of Lidl’s Dubai Style Chocolate, retail footfall rose so strongly it had to impose purchase limits in-store. “TikTok gives you a live panel of consumers telling you what they want,” says Al-Sabti. “Use that to shape NPD and drive full-funnel growth.”