Dive Brief:
- Seven in 10 luxury shoppers on TikTok have spent more than 1,000 pounds (approximately $1,355 at press time) on a single fashion item, typically after watching peer-led content, according to a TikTok-commissioned report conducted by AYTM.
- While over a third (38%) of TikTok users are more likely to find high-end brands through social user-generated content, nearly a third (32%) discover them via creator videos. Of the more than 3,000 luxury shoppers surveyed across the U.K., the U.S., Italy and France, about a fourth (26%) of TikTok luxury shoppers wait for creators to review products before buying them.
- A fourth of luxury shoppers are buying used items inspired by TikTok trends and a third purchase recommended products introduced through creator content, the report said. Citing a 2023 BCG report, TikTok said about two-thirds of first-time luxury purchasers said social media sparked their interest in the space.
Dive Insight:
Though TikTok is becoming a popular platform for finding high-end fashions, fewer are making immediate purchases. About 15% of survey respondents bought a luxury item directly after seeing it on the platform, according to TikTok. More often, shoppers save content and return to it when they’re ready to buy, the report said.
“This research shows that what drives luxury purchases today isn’t polish — it’s proof,” Cassandra Russell, GBS at TikTok U.K., said in a statement. “People want to hear from peers, not just brands. TikTok has become a place where credibility is built in the comments section and the path to purchase now runs through creators, conversations and community insight. It’s the spark that luxury brands can’t afford to ignore.”
While some TikTok users are shelling out on high-end goods, the majority of TikTok shoppers are spending far less on the platform. A PartnerCentric survey found that TikTok shoppers aged 60 or younger spent an average of $59 per purchase and $708 annually on the platform.
In light of the market volatility, even luxury shoppers are becoming less positive about the economy overall. A Saks Global Luxury Pulse survey released last month found that 28% of respondents reported a positive outlook on the economy, a 13-percentage-point decrease from the previous survey.
As luxury shoppers sour on the economy, their spending on high-priced items is predicted to contract. Purchases of personal luxury items could decline between 2% and 5% this year, a Bain & Company report projects. However, ultra-luxury items, jewelry, apparel and eyewear are expected to remain strong, according to the report.
