Single-week GMV around $1.5 million, the first hot-selling furniture store emerging on TikTok Shop U.S., a promising start for cross-border furniture brands going international | EchoTik Product Selection Insights

    ·June 24, 2024
    ·10 min read

    The TikTok Shop U.S. e-commerce weekly ranking list (10/23-29) is out, detailed as follows:

    l Last week, the total GMV reached $61.2 million, hitting a new historical record for the TikTok Shop U.S., which is a 131%increase from the previous week. The average daily sales were $8.7 million, 2.3 timeslarger than previous week; the highest daily sales reached $17.1 million. This record is expected to continue to grow with the upcoming Black Friday;

    As of October 29th, the GMV Top 5 product categories are ranked as follows: beauty & personal care, women's clothing, mobile phones and electronics, collectibles, sports & outdoors (new on the list);

    In the shop ranking list, we see several new faces. The new entrants on the list include platform shops and internationally renowned brands, including NewEgg (Top 7), Cider (Top 9), and AnkerUS (Top 10);

    Furniture and homewaresstores entered the list for the first time, ranking Top 1 and Top 2 in GMV, respectively.

    Furniture brands exportation has always been a topic of great interest for major cross-border sellers, especially this year. Ziel Home Furnishing Technology Co Ltd (referred to as "Ziel Technology") was listed on the GEM board, becoming the first cross-border e-commerce stock in Henan, which has drawn more attention to this market.

    Typically, such large items sell well on traditional e-commerce platforms like Amazon, eBay, Walmart, and Wayfair, as well as creative e-commerce platforms such as Home Depot and Etsy. However, when furniture brands move to TikTok Shop, which primarily trades smaller items, the business also thrives.

    Today's analysis will focus on the 1stranked store: Sweet Furniture, which is also the only furniture store in the TikTok Shop U.S. Top 10.

    1 TikTok Shop Data Analysis

    According to EchoTik data, since its launch in mid-August 2023, this store has rapidlygrowing sales and GMV: total sales reached 79,100units, with a high ATV, ranging from $36 to $500, close to $100in average, estimating a GMV of $2.66 million.|

    Nearly 90% of the orders were generated in the last 30 days, with a rapidly growing sales trend.On September 30, the store sold 173 items per day, and on October 29, the sales increase 27 times to 4740 items. On October 21, sales reached a monthly peak, surpassing 5450 items.

    In terms of product arrangement, the store currently has 25 actively selling products over a total of 50, a dynamic sales rate of 50%. The major categories include commercial furniture and indoor furniture, including office chairs, coffee tables, wardrobes, TV cabinets, etc., as well as low-priced complementary products for large furniture, including decorations, kitchen supplies, and textile products like dust covers, viable for combo marketing to increase profits.

    The store's primary marketing method is short video marketing, the pattern of short videos production in the last 30 days is consistent with sales trends. The store is also cooperating with numerous influencers to promote their productsto increase sales and exposure. In the last 30 days, 1400 short videos were posted, generating 55.6 millionexposures and millions of interactions for the brand.

    Top 1 hot-selling product in this store is office chair. As of October 31, the product has generated 15,600 sales, with a total GMV of $1.12 million, accounting for around half of the store’stotal sales.

    Taking this product as an example, we will analyze the store's successful marketing strategies to provide market insights for sellers of all categories.

    01 Main Image and Listing

    The product images and listing are made in professional standards, this suffice as one reason for such products being able to retain consumers on the detail page and quickly capture the main selling point, also the reason for experienced cross-border e-commerce sellers to quickly achieve high transactions after entering TikTok Shop.

    Take the main product image as an example, the eight main images convey multiple important information about the product, allowing potential buyers to quickly resonate within 10 seconds. For instance: various usage scenarios (home office/leisure/office, etc.), a clean and beautiful appearance, unique design details (a cross brace to ensure stability, adjustable tilt angle and height), maximum load capacity, and compatibility with tables of different heights. There is also an image that specifies the exact sizes of the product to prevent returns due to inappropriate size.

    The product titlesare also standardized, composed of the brand name andkeywords (adjectives + nouns), popular keywords can levitate chance of being searched. Sellers can use Google Trendsto find out search volume and traffic trend of their choices of keywords are being searched in the current period, their trends, try to use preciseand most-searched keywords.

    Higher priced product should especially focus on detailed of the product display. Cross-border sellers can refer to the descriptions of this store to adjust their own.

    02 Influencer Marketing

    In terms of batch influencer short video marketing, this product has invited 131influencers to carry out promotions. The fan base distribution of these influencers is quite broad, with the high end over 2 million fans and the lowest less than 1000. There are 10 top tier influencers who are in the millions club, most influencers have fan base under 100,000, mostly middle-aged or young women, mainlypromoting categories such as furniture, beauty & personal care, computers, and office equipment.

    03 Short Video Marketing

    Regarding video shooting, the main contents are influencer unboxingand product demonstrationvideos. The shooting technique is rather simple: single camera position, one narrator, video duration less than one minute. The exposure and conversion effects are very good.

    For example, the influencer @callmebelly in a 47-second video demonstrates the unboxing of the product, comparing the new chair with an old one, concentrating on the product's sleek appearance, adjustable height feature, ease of purchase, and high cost-performance through narration and operation. The single video has 105,500 views, 3,600 likes, with an estimated conversion of 108 sales, which brings an estimated revenue of $4,380.

    04 Immediate Transaction

    Furthermore, time-limited enticing discountsare a major tactic for capturing quick transactions. The product is priced at $89, but there has been a clear fluctuation in the price over the past 30 days, with the lowest price at only $15. However, sellers should also be careful not to adjust prices too frequently, otherwise, it might lead to a high volume of returns, exchanges, and customer complaints.

    2Global Furniture Market Insight

    According to Statista's data, in 2023, the global revenue size of the furniture market will reach $729.2 billion. The market is expected to grow annually by 5.03%(CAGR 2023-2028). This growth is driven by various factors, such as an increase in disposable income, growth in the hotel and housing industry, expansion in the commercial construction sector, and continuously growing global demands for high-class and luxury furniture.

    However, the COVID-19 pandemic has posed a significant impact on the trends of consumerand manufacturing in the furniture market. Due to economic constraints, consumers were unwilling to spend money on non-necessities, including home decor. After the gradual waning of the pandemic's impact, the homeware market appeared to havea slow but certain recovery, with consumers adopting an open attitude towards spending on household products again, pulling the demand for furniture.

    The United States is the source of most revenues in the global furniture market, totaling $243.8 billion in 2023, demonstrating strong purchase power.

    In terms of market share, the Asia-Pacific regionholds a dominant position. This growth can be attributed to the increase in disposable income among the upper-middle-class population. It is expected that from 2023 to 2030, the annual compound growth rate of the Middle Eastand Africawill reach 6.2%, ranking second globally. The growth of the industry in this region can be attributed to several countries, including the UAE and Saudi Arabia, which are actively investing in the construction of infrastructure to attract international tourists and create opportunities for economic growth.

    The largest global segmented market is living room furniture, with a market size of $214.7 billionin 2023. The annual compound growth rate of the sofa & couch market is expected to reach 7.1%from 2023 to 2030.

    The fact that more millennials are buying houses, especially those old houses requiring more renovations, are driving the growth of the global sofa & couch market. According to research by HomeAdvisor, millennials invest in more home renovation projects each year compared to other age groups. This may drive market growth during the forecast period.

    Moreover, in terms of furniture choices, consumers' attention to environmental protection has led various companies to launch eco-friendly furniture. For example, all furniture provided by Cisco Home is made of clean ingredients and FSC-certifiedwood, hence gaining popularity among consumers.

    Natural woodwas the most-used raw material in the furniture market in 2022. Influenced by the rise of low-cost homeware designs, plastichas the fastest market growth rate and is expected to continue growing at an annual compound growth rate of 7%. In addition, the demand for the R%D of high-performance plastic materials will also continue to grow.

    Smart homewareis also a recently renowned high-growth market. In 2020, the global smart furniture market size was $143.6 million, and it is expected to grow at a compound annual growth rate of 12.4% from 2021 to 2028. North Americadominates the smart furniture market, with the largest revenue share in 2020 at 32.8%.

    Smart office desks are currently the largest segment in this market and are rapidly taking over the market with a compound annual growth rate of 13.6%, possibly due to urban consumers are open to spend money on luxury modern living.

    In terms of purchasing methods, selecting and buying furniture offline still dominates. However, with the gradual perfection of online channels, it is expected that the frequency of purchasing furniture online will grow in the future.

    3 Product Selection & Operational Strategies Insights

    Exporting large furniture is profitable and the market has a broad margin, such opportunity also poses challenges for sellers, requiring integrate supply chain capabilities, product R&D abilities, financial capacity, overseas warehousing, logistics, and installation services. Therefore, we suggest that vertical integration sellers with experience or budget in exporting can try to enter the market in forms of online stores, or collaborate with service providers.

    Currently, the TikTok Shop's large furniture market is still in its early stages, while Chinese Douyin has already developed multiple marketing methods in this market, such as: factory lives (suitable for direct sources, mainly promoting cost-effectiveness and private customization of Foshan factories), brand lives (suitable for brand sellers who want to build brand, combined with offline stores for direct sales or conversion), and store lives (suitable for combine stores with medium to low ATV and high cost-effectiveness products), etc.

    In terms of product selection, ensuring to avoid imitations of internationally renowned designers to prevent intellectual property lawsuits, customer complaints, and high penalties.

    For sellers without conditions or bases for exporting large furniture, try to focus on the category of homeware products, including small items or derivative products. For example, sofa covers,and other homeware products are very suitable for sellers in the Nantong industrial belt. As well as mid-to-high-tier home decorations, unique decorative items, etc., all are suitable for displaying products characteristics through short video content.



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