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Fashion started warming up to TikTok. Then turbulence hit

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TikTok is making a play for Instagram’s fashion marketing spend and luxury brands are taking note. As a possible US ban looms, will brands continue to wade in?

“Traditionally, luxury brands are used to producing highly edited, highly polished, highly produced content,” says Sarah Willersdorf, global head of luxury at Boston Consulting Group. “That’s not what TikTok is.” She says luxury brands should hand over to creators who are better placed to create authentic and unfiltered videos that engage a TikTok audience.

TikTok’s goal is not to create highly curated and aspirational content that you would see in the pages of a fashion magazine, says Karassoulis. “Now is time to add another dimension to your brand personality. The side that is bold, relevant and authentic and speaks to your customer’s values and beliefs.”

TikTok provides luxury brands with tips on posting frequency (quality over quantity is key, it advises) and highlights examples of viral fashion content on the app, like JW Anderson’s viral crochet cardigan tutorials, to inspire brands to produce educational and fun videos. Tools like TikTok for Business, which assists brands with video production, and the TikTok creator marketplace, which helps them find high-impact influencers to collaborate with on the app, are available to encourage participation. For branded content, the emphasis is on creativity.

“Any brand using TikTok must be aware that content, not followers, is the key. The power of our algorithm, along with the high quality of content that creators produce on TikTok, means anyone can go viral — it all comes down to the creativity and the power of their content,” says Karassoulis.

Most engaged Gen Z

Luxury brands particularly like TikTok’s accessibility to Gen Z. Dior says the app offers access to a more engaged Gen Z audience than any other platform. The brand, which joined the app in November and began posting in July, has used it to promote digital fashion shows post videos, including footage of its Puglia Cruise 2021 show, Travis Scott wearing the new Dior Air Jordans and influencers like Chiara Ferragni reflecting on Covid-19. A video showing the making of the new Dior Bobby flap bag, for Autumn/Winter 2020, has garnered 2.3 million views. 

There is some way to go for luxury, and TikTok luxury and fashion brands as a whole still have a lower presence and lesser impact on TikTok compared with other platforms. However, its audience is growing, and the account is seeing strong organic reach, follower recruitment and engagement, per the brand.

Fashion started warming up to TikTok. Then turbulence hit

 

Popular fashion influencer Leonie Hanne joined the platform in March this year and works with luxury brands like Dior, Prada, Givenchy and Fendi. Prada asked Hanne to create TikTok content in support of their SS21 digital show and gave her total creative freedom. She highlights the importance of giving creators creative control if brands want to resonate with young users. “For luxury brands, the more free and open to spontaneity you can be with your brief, the better your results will be on TikTok,” she says.

Dior is still in the testing phase on TikTok. For now, the platform is not taking marketing spend away from others like Instagram or Facebook, the brand says. Instead, TikTok spend comes from targeted allocations for sponsorships and content creation. Other brands have invested resources in the app in the last year: Balenciaga’s shoppable Christmas campaign drove 25 million views, says Karassoulis.

Between a ban and an acquisition

A TikTok ban in the US would cut off one of TikTok’s — and luxury’s — most significant markets. With an estimated 190 million downloads since 2014 according to research firm Sensor Tower, the US is TikTok’s third-largest audience after China and India, where the app was banned at the end of June. “If [the ban] does happen, it’s a blow,” says Craig Chapple, mobile insight specialist at Sensor Tower.

With more than 2.3 billion downloads globally from Google Play, TikTok would still have access to a massive audience and significant advertising revenue worldwide, Chapple adds. And TikTok’s young users are well-equipped to circumvent a ban by switching to VPNs to access communities until they “organise migration”, avoiding a major “audience collapse” for the app, says Julia Errens, pop culture and media editor at trends intelligence company Stylus.

Dior’s TikTok account. 

© Dior

Competitors are ready to welcome TikTok’s former US audience if that migration happens. Instagram is launching TikTok-like video feature Reels in August in the US after testing it in Brazil. The social media company has already approached TikTok creators, offering financial incentives to try the new feature. Short-video platforms like Byte, Triller and Dubsmash could also take up the torch in the event of a ban. TikTok influencers who have built audiences on the app could refocus their energy on more established platforms like YouTube, which provides a more stable and profitable source of income with its straightforward pay-for-views system.

A Microsoft acquisition would maintain TikTok in its current form while making it a local competitor. The deal would put to rest some of the concerns around cybersecurity and privacy, says Mark Moerdler, senior research analyst at Bernstein. “Given Microsoft’s large cash position, technology and AI capabilities, [TikTok] would be positioned to continue to become a major player in this space,” he says. A ban, on the other hand, could have a “domino effect” on other countries.

The possible US ban has influencers worried, but not too much. Influencer Addison Rae says that, if the ban happens, “it will be a sad day”, but adds that she would have “tons” of other projects to focus on, including her American Eagle campaign and her podcast. Kaye, who has his largest following on the platform but doesn’t see himself as a TikToker, thinks the app’s future is “up in the air”. “Instagram is a lot more solidified, so I would put my money on [it],” he says.

Errens agrees that brands should diversify. “I would always recommend to not focus too much of a brand’s engagement budget on a single platform, no matter how big its heyday,” she says.

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Haute People was launched in September 2011 as a Fashion Blog and has grown into a Lifestyle Blog. The Term “Haute” can be defined as “Fashionably Elegant” or of High Quality. This blog looks at topics from Beauty, Fashion, Entertainment, Hair Trends, Pop Culture as well as exciting new features every month. A favorite among our readers is “Behind The Seams” where influential people from the Creative Industries are featured. . Haute People are Smart, Bold, Creative and Individualistic. If you have an innate passion for Lifestyle, Fashion and all things current, you are HAUTE.

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