In recent years, the landscape of consumer sales channels has undergone a significant transformation, with digital platforms playing an increasingly pivotal role.
One of the most notable developments is TikTok's emergence as the UK's fourth largest beauty retailer, behind giants like Amazon, Boots, and Lookfantastic (according to NielsenIQ). This shift not only highlights the evolving nature of consumer behaviour but also presents unique legal challenges and opportunities for businesses operating within the cosmetics industry.
TikTok's ascendancy in the beauty sector
In the past, purchasing beauty products often meant visiting a physical store, where the charm of elegant displays and the advice of in-store experts guided buying decisions. Nowadays, however, the shopping experience increasingly begins online, with consumers scrolling through social media feeds, particularly on TikTok. The platform's algorithm-driven content delivery allows for highly personalised user experiences, making it an ideal space for beauty brands to showcase their products. Influencers and content creators play a crucial role in this ecosystem, leveraging their reach to drive product awareness and sales.
As noted by beauty industry leaders, TikTok has become the "front door for beauty," reshaping how brands launch, market, and sell their products.
The influence of Gen Z
Gen Z, in particular, is driving this digital transformation. As a generation that is inherently digital-native and social media-savvy, Gen Z consumers are reshaping the beauty market with their preference for engaging, short-form content and real-time interactions. Their influence is compelling brands to rethink traditional marketing strategies and embrace platforms like TikTok to capture their attention. This demographic's purchasing power and trendsetting capabilities make them a critical audience for beauty brands aiming to thrive in the modern retail landscape.
Legal implications for beauty brands
As TikTok continues to solidify its position in the beauty retail sector, brands must navigate a complex legal landscape. Here are some key considerations:
- Advertising standards and compliance: Brands must ensure that their marketing practices on TikTok comply with the Advertising Standards Authority (ASA) guidelines and, in particular, its guidance relating to cosmetics products. This includes clear labelling of sponsored content and adherence to rules regarding misleading advertising. Influencers who play a significant role in promoting beauty products on TikTok, must also comply with these standards. They are required to disclose any commercial relationships with brands, typically through labels such as #ad, to ensure transparency with their audiences. Additionally, any claims made by influencers about a product's efficacy must be substantiated with evidence, and they should avoid making exaggerated or misleading statements. Brands should work closely with influencers to ensure that all promotional content aligns with the ASA's requirements.
- Intellectual property rights: The use of music, images, and other content on TikTok can raise intellectual property issues. Brands need to secure appropriate licences and permissions to avoid potential infringements. They should also ensure that they are monitoring TikTok sales for potential infringement of their own IP rights.
- Data protection and privacy: With TikTok's extensive data collection capabilities, brands must be vigilant about data protection laws, particularly the General Data Protection Regulation (GDPR). If brands plan to collect or use any personal data from TikTok to use in their marketing or to target products, they must make sure that they do so in a compliant way. This could include updating the brand's privacy policy to reflect that data is being collected, or issuing notices to users about how their details were obtained. Where brands are sharing their customers' data to enable the TikTok shop to fulfil their orders, brands should also consider whether they have appropriate contractual agreements in place to protect the data they share.
- Consumer protection: The rise of social commerce on platforms like TikTok necessitates a robust understanding of consumer rights and rules around distance selling. Brands must provide clear information about products, pricing, and return policies to comply with consumer protection laws. This is particularly important given the enhanced powers to the Competition & Markets Authority (CMA) to enforce consumer protection laws.
- Online safety: The UK's Online Safety Act 2024 (OSA) requires platforms like TikTok to implement practices that protect children and vulnerable people. Brands using TikTok for marketing and advertising should consider whether any paid content, such as ads or paid placements, might be at risk of removal for breaching the OSA. For example, certain terms may be flagged for removal by TikTok's moderation.
Conclusion
TikTok's emergence as a major player in the UK beauty retail market underscores the need for brands to adapt to new consumer sales channels. By understanding the legal implications and opportunities associated with this shift, businesses can effectively navigate the challenges and capitalise on the potential of this dynamic platform.
With the beauty market's value exceeding £30 billion and social commerce expanding rapidly, TikTok's influence is set to continue shaping the future of beauty retail. More than 80% of TikTok users say the content they watch directly influences the products they use, highlighting the platform's role as the "shop window" for beauty and cosmetics.