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Who is winning the business game on TikTok?

TikTok has quickly transformed from a site for dance routines and funny videos to an international marketplace where companies large and small can develop genuine, direct connections with audiences. What sets apart the successful businesses on TikTok is not just their eagerness to join, but their ability to utilize the platform’s distinct culture, features, and algorithms to boost interaction and expansion.

The Power of Authenticity: Storytelling over Selling

En TikTok, la publicidad convencional suele no ser efectiva. Los usuarios prefieren el contenido que se siente auténtico y cercano, lo que implica que las compañías que actúan más como creadores que como empresas generalmente prosperan. Por ejemplo, Ryanair, una aerolínea de bajo costo, ha conseguido millones de seguidores al convertir la marca en un personaje con el que se puede identificar. Utilizando sonidos de moda, filtros graciosos y comentarios autocríticos sobre los retrasos de vuelos y las ansiedades de viaje, Ryanair transforma las quejas de los clientes en contenido humorístico. Esta táctica hace que la aerolínea sea percibida como accesible y humana, en lugar de ser solo otra empresa sin rostro.

Rather than direct product pitches, businesses winning on TikTok utilize story-driven content. Small businesses frequently showcase behind-the-scenes glimpses: how products are made, day-to-day operations, or candid reactions to customer feedback. The hashtag #smallbusiness has over 109 billion views, illustrating the appetite for this raw, unfiltered perspective. For instance, coffee shop owners like Kleins Coffee in the US narrate stories about their family recipes or showcase the “Coffee of the Day,” encouraging meaningful connections beyond the product itself.

Embracing Trends and Challenges: Agility Pays Off

Virality on TikTok is fueled by trends and challenges—formats that level the playing field for brands regardless of marketing budget. Duolingo, a language-learning app, signals the potential of this strategy. Their approach centers around the company’s green owl mascot interacting with trends, memes, and cultural moments in a playful, sometimes irreverent fashion. Duolingo’s TikTok channel regularly achieves millions of views by responding swiftly to trending sounds or viral jokes, proving that relevance and speed are major assets.

This agility extends to retail. Beauty brands like Fenty Beauty and The Ordinary have succeeded not by pushing products, but by reacting to viral makeup challenges, responding to user questions, and sharing creative tutorials that demystify skincare routines. Their willingness to hand creative control to TikTok creators, empowering authentic voices to experiment with products, enhances credibility and drives virality.

Content Created by Users as a Driver for Expansion

Another hallmark of successful TikTok businesses is embracing user-generated content (UGC). Brands like Chipotle intentionally create campaigns designed for replication, such as their #LidFlip challenge, which encouraged users to flip burrito bowl lids and showcase their own Chipotle orders. Such campaigns not only generate buzz but also allow the brand’s reach to extend organically as users remix, react, and reinterpret the original content.

UGC also bolsters community-based marketing for smaller companies. For example, Bala Bangles, a fitness accessory brand, gained significant popularity when TikTok influencers showcased inventive exercise routines using their products. This exposure led to a ripple effect, with the brand’s sales increasing as trending videos encouraged numerous replications and favorable feedback.

Utilizing TikTok Shopping and Collaborations with Influencers

The emergence of TikTok Shop and smooth shopping integrations has led to notable changes in the marketplace. Businesses using TikTok’s built-in e-commerce features experience simplified transitions from finding products to buying them. For instance, fashion brand ASOS employs try-on hauls, “get ready with me” clips, and live shopping sessions to present products in an authentic manner, encouraging swift purchases directly within the app.

Influencer partnerships remain pivotal as well. Brands like Glow Recipe align with skincare influencers whose honest product reviews and demonstrations spark viral trends and sustained conversations about ingredient transparency. This transparent, peer-to-peer marketing is particularly potent among Gen Z and millennial demographics.

Various Industries Achieving Success

The successful approach isn’t limited to just one field. A variety of industries are flourishing:

Education: EdTech firms such as Study Smarter and science communicators like Hank Green break down complex topics into snappy, digestible insights, making learning entertaining and shareable.

Economics: Creators focused on financial education cooperate with fintech companies, breaking down the fundamentals of investing or clarifying how credit scores work through engaging sketches, transforming a typically dull topic into practical guidance.

Food & Beverage: Both neighborhood bakeries and global brands flourish by showcasing recipes, conducting flavor trials, and sharing customer feedback videos that entice audiences to make online purchases.

Data and Case Studies: Measuring Impact

Data supports TikTok’s role in business success. According to TikTok’s 2023 “What’s Next” report, 38% of users globally have purchased a product after seeing it on the platform. A notable case is Little Moons, a UK-based mochi ice cream brand, which saw a 700% increase in supermarket sales after a viral TikTok video pointed users to where the product could be found. The “TikTok made me buy it” phenomenon exemplifies the platform’s capacity to catalyze commercial trends overnight.

Another investigation conducted by Marketing Dive found that campaigns utilizing influencers on TikTok achieved almost twice the engagement compared to those on Instagram or Facebook, particularly in the sectors of beauty, fashion, and food. The common factor: Successful businesses synchronize their messages with the dynamic, creator-focused environment of the platform.

The future of business

Enterprises thriving on TikTok are the ones who understand and adopt the platform’s environment of sincerity, quickness, and community involvement. They view each video as a chance to tell stories, rather than just to promote products. By combining innovation with adaptability and prioritizing authentic interaction over traditional advertising, these firms engage users in a shared, ever-changing brand story. Achieving success on TikTok focuses less on capturing attention and more on collaboratively shaping significance with an engaged and enthusiastic audience.

By Anna Edwards

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