The rise of social commerce has attracted increasing numbers of cross-border players to its lucrative ecosystem. TikTok, the short-video giant, is rapidly reshaping the global e-commerce landscape. Within just two years, TikTok Shop has demonstrated remarkable growth momentum, achieving $840 million in GMV in 2021 and targeting $1.68 billion in 2022—nearly doubling its performance. This explosive growth signals 2022 as a pivotal year for TikTok's e-commerce ambitions.
Recognizing this vast opportunity, industry leaders have been quick to establish their presence. Recently, DHGate, a leading cross-border B2B e-commerce platform with significant market share in the U.S., has joined the TikTok Shop ecosystem. This strategic move raises questions about how DHGate will leverage TikTok's platform to forge new pathways for cross-border growth.
1. DHGate's Strategic Expansion: TikTok Shop as a New Growth Engine
Since last year, DHGate has actively expanded its TikTok Shop presence across multiple markets including the UK, U.S., France, Italy, and Germany, primarily promoting footwear, apparel, and home goods. Through precise operational strategies and high-quality products, DHGate has achieved significant results on TikTok Shop, with substantial increases in page views, customer acquisition, transaction volume, and GMV—successfully establishing TikTok Shop as its second growth channel beyond its independent platform.
Founded in 2004, DHGate ranks among China's top cross-border e-commerce platforms and holds the leading position among Chinese B2B cross-border platforms in the U.S. market. The platform hosts over 37 million products annually, serves 46.6 million registered buyers across 223 countries and regions, and operates more than 100 logistics routes with over 10 overseas warehouses, supporting payments in 71 currencies. With global offices in North America, Latin America, and Europe, DHGate provides efficient cross-border trade services worldwide.
However, as traditional advertising costs continue to rise, DHGate faces challenges in overcoming sales growth bottlenecks. To discover new growth opportunities, the company has turned to TikTok's massive traffic and innovative commerce features through TikTok Shop.
2. DHGate's TikTok Growth Strategy: Three Core Approaches
DHGate's success on TikTok Shop stems from precise strategies and effective execution. Below are its three core approaches:
Live Commerce: Driving Traffic and Conversions
Live streaming remains one of TikTok Shop's most effective marketing tools. DHGate capitalizes on live streaming's real-time interactivity and engaging shopping atmosphere to attract viewers and drive purchases.
- Refined Live Operations: DHGate meticulously plans live scripts and schedules ad placements to ensure compelling content that retains viewer attention.
- Targeted Traffic Acquisition: During key moments such as product promotions or special offers, DHGate strategically boosts visibility to enhance conversion rates.
- Diverse Ad Combinations: The company employs multiple ad formats to maintain consistent traffic flow during live sessions.
- Audience Optimization: By leveraging Spark ads and audience targeting, DHGate ensures its live content reaches high-intent buyers.
Shopping Ads: Precision Targeting for Higher Conversions
Shopping ads represent another vital TikTok Shop advertising format. DHGate implements a data-driven approach to maximize their effectiveness.
- Strategic Product Selection: The company focuses on regionally popular categories to avoid inefficient ad spend.
- Localized Creative Content: DHGate tailors ad creatives to regional preferences, such as humorous product demonstrations for Southeast Asian markets.
- Continuous Optimization: Through rapid data analysis, DHGate refines its models to improve ROI performance.
Influencer Partnerships: Amplifying Reach Through KOLs
Collaborations with TikTok creators play a crucial role in DHGate's marketing strategy.
- Strategic Creator Matching: DHGate selects influencers based on product characteristics and target demographics.
- Co-Created Content: The company works closely with creators to develop engaging content that drives user interaction.
- Performance Incentives: Competitive commission structures motivate creators to actively promote products.
3. Key Strategies for Global Brands on TikTok Shop
Beyond DHGate's successful case study, global brands can adopt these strategies to achieve success on TikTok Shop:
Product Selection
- Utilize trend analysis tools to identify high-demand products.
- Monitor TikTok Shop's bestseller lists for market insights.
- Analyze competitor strategies to identify differentiation opportunities.
Content Strategy
- Incorporate trending audio tracks to boost content visibility.
- Develop humorous or relatable content that resonates with audiences.
- Participate in relevant hashtag challenges to increase brand exposure.
- Encourage user-generated content through branded campaigns.
Operational Excellence
- Analyze performance data to refine marketing approaches.
- Conduct A/B testing to optimize ad creatives and targeting.
- Engage actively with users through comments and messages.
As TikTok continues to evolve as a vital channel for product discovery and purchases, global brands that embrace its innovative commerce features stand to gain significant competitive advantages in the cross-border e-commerce arena.