TikTok Shop Snubs Latin-Owned Businesses... Or Did They?

A Social Commerce Newsletter

Author

Nicole Rechtszaid
September 26, 2024

If you work in the TikTok Shop space, you are likely familiar with the regular programming of TikTok-sponsored campaigns. The benefits are usually promoted ambiguously, with perks listed as “promote coupons” for the top-selling content and potential priority placement on Shop Tab for some.

These campaigns have motivated sellers and creators to partner for affiliate activity ahead of time, with TikTok Shop affiliates having access to a curated list of products that will be featured to either a) request a free sample or b) purchase the product with time for shipping and content production before the campaign is live.

Usually, the campaign themes are loosely adhered to, with random products making their way into the campaign. However, cultural and ethnic campaign celebrations hold more weight, making it crucial for sellers to self-disclose if they align with a heritage or cultural history month.

Hispanic Heritage Month commenced on September 15, 2024, with TikTok Shop promoting a #ShopLatinOwned campaign. As a first-generation Bolivian-American, I was thrilled to look through Latinx-owned businesses on TikTok.

But then I noticed that the assortment of products was all too familiar… a stereotypical portrayal of Latinas and their supposed hobbies. Fajas (shapewear), whitening soaps, and weight loss supplements littered my page. A handful of makeup products and fashion made their way through, but the collection of small waist, white face, and big bum products far overshadowed this.

So how did this happen? Was it TikTok’s fault?

We can’t be certain. However, my top theories are:

  1. TikTok’s campaign team stereotyped and intentionally curated this list, thinking this could be a money-grab opportunity to prey on insecurities.

  2. TikTok’s campaign team forgot about this cultural moment until the last moment and frantically enrolled the lowest-hanging fruit.

  3. There are simply not enough Latin-owned businesses on TikTok Shop.

  4. There are simply not enough Latin-owned businesses in ecommerce.

While we may never know the truth, please let this be a reminder that these cultural and ethnic events can cause more harm than good if tokenized. The campaign has officially gone live today, September 26, 2024 on TikTok, but all promotional materials in the TikTok Shop for Creators section have been taken down.

News 📰

In a shocking turn of events, Snapchat beat both TikTok and Instagram in creator-driven shopping.

While this doesn’t speak for all of social commerce as a whole, it’s a great indicator that Snapchat creators have a particularly powerful impact on their fans. I spoke with Hope Georgiou, Founder of HG Media, a leading Snapchat marketing agency for brands and creators, and here’s what she had to say:

“At the end of the day people are sick of being sold to. We are seeing more and more influencers with less and less influence. The thing that makes Snapchat outshine other platforms is there is little focus on vanity numbers and more focus on community.

The way people interact on the platform is in a much more personal manner than TikTok or Instagram. A huge part of this is due to the type of content. More often than not, the content living on these other platforms are a bit out of touch.

On Instagram we want to be sure we are posting the best quality videos and pictures because that's where the platform thrives. When we watch this content it feels very "aspirational", the average person is looking at their favorite influencers and saying "that could never be me."

On Snapchat, these creators have been given a platform where there is essentially no rules. You can post all you want, you can speak to the camera unfiltered, and you can interact with your audience in an organic way.

This should be a massive indicator for brands that this is a direction they need to be moving in. Again, people don't want to be sold to. They want to feel like they are getting recommendations from a friend. That's where Snapchat and brands are going to thrive, especially when it comes to converting viewers into customers.”

Source: eMarketer

TikTok Shop 📱

  • In the U.S., nearly 54% of Gen Z will find gifts on TikTok Shop alone (Retail Dive)

Twitch 👾

  • TwitchCon 2024 had a few key announcements: (Twitch)

    • Following a NVIDIA and OBS partnership, Twitch will begin offering 1440p (“2K”) resolution for viewers of streamers using Enhanced Broadcasting next year.

    • Next year, Twitch will enable streamers to stream in both vertical and landscape video simultaneously so viewers get an optimal viewing experience, no matter what kind of device they’re watching from.

    • Following an initial test with creator clubs, Twitch will launch four more: Artists/Makers, Music, VTubers, and Coworking/Coding. You can apply to join the clubs here.

  • FaZe Clan was swatted (again) at their Twitch house in Sherman Oaks (Daily News)

Meta 🌐

  • A third of U.S. respondents in a Retail Dive survey will shop for gifts seen on Facebook and Instagram ads (Retail Dive)

YouTube 🎧

  • YouTube is launching AI-powered tools to help creators build and grow their audiences (Retail TouchPoints)

  • YouTube working on a TikTok Shop rival shopping feature in Southeast Asia through a partnership with Shopee (Campaign Asia)

Predictions 🔮

TikTok Shop has been making Amazon and YouTube nervous. YouTube has responded with releasing more shoppable features and tools for creator affiliates.

As TikTok’s legal uncertainty continues and TikTok Shop becomes increasingly oversaturated, I anticipate that Amazon and YouTube will spend top dollar on creator initiatives with flat fees, rewards, and IRL networking to sway creators.

By Q2 2025, I predict that Amazon and/or YouTube will release a massive creator fund or program that will be led by top creators.

About Me

Hi, I’m Nicole! I’m a Gen Z social commerce entrepreneur and TikTok creator. I’m the Co-Founder of Ghost Agency, a social commerce company that supports brands and influencers with content and livestreams. Ghost Agency is one of the first TikTok Shop Partner agencies and we’ve been mentioned in The Information and Business Insider.

Thanks for reading my newsletter. If you’d like to connect with me, you may do so via email or LinkedIn. Feel free to reach out if you have any requested topics, general inquiries, or Ghost Agency questions.