Food and beverage company PepsiCo’s entry into TikTok Shop, the e-commerce platform of short-form video streaming Tiktok, in July 2023, enabled it to achieve over 600% GMV growth in the platform’s initial two quarters.
PepsiCo’s multi-brand store showcased the value of cross-selling, highlighting the company’s adeptness in assortment strategy.
“We are thrilled with the success we’ve achieved with TikTok Shop, which early on, is showing potential to be an exceptional platform for connecting our brands with the right target audience in a dynamic and engaging way,” said Adriann Eusebio, commercial director-PH, Total Foods, and marketing director-SEA and NA, Total Foods.
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Eusebio noted that the growth witnessed underscores PepsiCo’s deep consumer insights and innovative e-commerce strategies forged through collaborations with key partners like TikTok Shop.
Brand optimization
PepsiCo’s success is underpinned by a comprehensive approach to brand optimization using TikTok Shop’s ACE framework (Assortment, Content, and Empowerment):
- Assortment: PepsiCo fine-tuned its product listings and store design to minimize stockouts and establish a trustworthy storefront. Seasonal bundles, especially during peak demand periods, further underscored its commitment to meeting consumer needs.
- Content: Adopting a targeted content strategy, PepsiCo engaged both general and top-tier affiliates, including Multi-Channel Network (MCN) vertical accounts. Regular livestreams and consistent short video postings were pivotal in building viewership and driving sales.
- Empowerment: Maintaining high store and product ratings, ensuring prompt deliveries, and addressing customer queries promptly reinforced trust and fostered repeat purchases. Active participation in platform campaigns and co-branded promotions amplified PepsiCo’s reach and appeal.
“Our unique ‘Shoppertainment’ approach has fundamentally changed how brands and consumers interact, driving unparalleled engagement and sales,” said Jonah Ople, cluster lead for Fashion Category, TikTok Shop.