Category 2 Social Commerce Trends (Jan 2025)

/ What's Trending on TikTok /

SimpTok gives you TikTok Shop sales trends so you can sell the right products on social commerce. Join our free community today.

This report highlights key trends and performance insights from TikTok Shop sales data between December 2024 and January 2025. From high-revenue drivers like Nutrition & Wellness and Fragrance to volume leaders such as Makeup and Snacks, the data reveals opportunities for growth, emerging consumer preferences, and profitable categories. Dive into the analysis to explore actionable recommendations for leveraging these trends and maximizing profitability.

We classify category 2, referred to in the rest of this article as category, as a specific layer of the category taxonomy, which includes things like loungewear, makeup, fitness, and nutrition & wellness.

Top Performing Categories by Revenue

  1. Nutrition & Wellness:
    • Revenue: $77.28M at a 50% margin.
    • High unit sales (2.57M), showcasing broad demand.
    • This category is a significant revenue driver with strong gross margin contribution.
  2. Fragrance:
    • Revenue: $23.6M for products priced at $40 with a 50% margin.
    • Demonstrates the high consumer interest in premium and mid-range fragrance options.
  3. Fitness:
    • Revenue: $45.7M with a unit price of $200.
    • Although the margin is lower (20%), the high unit price makes this a standout category.

High Gross Margin Categories

  • Artificial Gemstones: Consistently achieves a 50% gross margin across various price points ($20-$25), showing potential for scalability.
  • Costume Jewelry & Accessories: Generates high volume sales (533K units) and robust margins (50%), making it a profitable category.
  • Haircare & Styling: Revenue of $7.77M with a 50% margin, driven by strong unit sales of 311K.

Volume Leaders

  • Makeup: Sold over 2.0M units across various price points, contributing significantly to TikTok Shop’s sales volume.
  • Snacks: Sold over 600K units with competitive margins (30%), indicating consistent consumer demand for low-cost items.

Emerging Opportunities

  1. Home Care Supplies:
    • Revenue: $4.49M with a steady 35% margin.
    • High sales volume (224K units), reflecting stable consumer interest.
  2. Women’s Sleepwear & Loungewear:
    • Revenue: $13.51M with a 35% margin.
    • Consistent unit sales (450K) highlight the increasing demand for comfort-driven products.
  3. Trading Cards & Accessories:
    • Revenue: $10.96M with high unit sales (731K), showcasing niche interest with potential for growth in collectibles.

Notable Trends

  • Premium Pricing Strategy:
    • Categories like Fitness and Fragrance show strong revenue generation despite higher unit prices, suggesting a consumer willingness to pay for quality or niche products.
  • Affordable Essentials:
    • Snacks, Makeup, and Home Care Supplies are volume leaders with competitive pricing and reasonable margins, indicating sustained consumer interest in low-cost, everyday items.

Categories to Watch

  1. Skincare:
    • Revenue: $8.32M with consistent demand for mid-range ($30) and lower-end ($10) products.
    • Potential to expand product offerings to cover broader price points.
  2. Women’s Tops:
    • Revenue: $23.50M, one of the highest grossing apparel categories.
    • High unit sales (671K) suggest a strong consumer affinity for this category.
  3. Bath & Body Care:
    • Multiple price points ($10-$30) driving over $3M revenue in different sub-categories, indicating diversified demand.

Underperforming or Niche Opportunities

  • Soldering Equipment:
    • Revenue: $969K with only 9,690 units sold, indicating a niche market.
  • DIY:
    • While revenue contributions are modest ($605K-$484K), the category maintains stable margins (~35%), suggesting potential for targeted growth.

Recommendations for Growth

  1. Focus on Premium and Volume Categories:
    • Expand offerings in Nutrition & Wellness, Fragrance, Fitness, and Skincare, as these categories combine high demand with strong revenue potential.
  2. Strengthen Niche Categories:
    • Invest in marketing for categories like Trading Cards & Accessories and Bath & Body Care to boost consumer interest.
  3. Leverage Data-Driven Pricing Strategies:
    • Optimize price points in categories with high margins and moderate sales, such as Women’s Shoes and Artificial Gemstones, to maximize profitability.

Detailed Breakdown and Insights by Specific Metrics

Top Revenue Generators

  1. Nutrition & Wellness
    • Revenue: $77.28M
    • Units Sold: 2.57M
    • Gross Margin: $38.64M (50%)
    • Insights:
      • Dominates with both high unit sales and profitability.
      • Suggests potential for expanding product offerings, such as targeting niche health supplements or mass-market wellness products.
  2. Fragrance
    • Revenue: $23.6M (Top product at $40 with 50% margin).
    • Units Sold: 590K
    • Gross Margin: $11.8M
    • Insights:
      • High performance across various price tiers ($40-$50).
      • Expand premium fragrances and seasonal scents to capture more market share.
  3. Fitness
    • Revenue: $45.7M
    • Units Sold: 228K (High price: $200/unit).
    • Gross Margin: $9.14M (20%)
    • Insights:
      • High-ticket items drive significant revenue, but margins are thinner.
      • Explore mid-tier offerings ($50-$100) to appeal to a broader audience.

High Gross Margin Categories

  1. Artificial Gemstones:
    • Gross Margin: 50%
    • Revenue: $2.39M (Top product at $25/unit).
    • Insights:
      • Strong profitability at low-to-mid price points.
      • Increase marketing spend to boost volume in this category.
  2. Haircare & Styling:
    • Gross Margin: 50%
    • Revenue: $7.77M
    • Units Sold: 311K
    • Insights:
      • Consistent demand for products in the $20-$25 range.
      • Experiment with bundles or subscription models for recurring revenue.
  3. Skincare:
    • Gross Margin: 50% (Top price: $30).
    • Revenue: $8.32M
    • Units Sold: 277K
    • Insights:
      • High demand for mid-priced products.
      • Seasonal or limited-edition offerings could drive further growth.

Volume Leaders

  1. Makeup
    • Units Sold: 2.0M+
    • Revenue: $6.54M (Top product at $12/unit, 50% margin).
    • Insights:
      • Affordable items dominate, appealing to price-sensitive buyers.
      • Introduce compact kits or themed collections to encourage bulk purchases.
  2. Snacks
    • Units Sold: 600K+
    • Revenue: $4.33M (Top product at $10/unit, 30% margin).
    • Insights:
      • Consistently high sales volume indicates potential for new flavors or value packs.
  3. Women’s Tops
    • Units Sold: 671K
    • Revenue: $23.50M
    • Insights:
      • High sales and robust gross margins (35%).
      • Focus on expanding styles and seasonal trends.

Emerging Opportunities

  1. Trading Cards & Accessories
    • Revenue: $10.96M
    • Units Sold: 731K
    • Insights:
      • Niche but high-performing category.
      • Explore collaborations with influencers or themed releases.
  2. Women’s Sleepwear & Loungewear
    • Revenue: $13.51M
    • Units Sold: 450K
    • Insights:
      • Rising demand for comfort-first clothing.
      • Bundle sleepwear with related products like skincare or bedding.
  3. Home Care Supplies
    • Revenue: $4.48M
    • Units Sold: 224K
    • Insights:
      • Stable demand with decent margins (35%).
      • Potential to introduce eco-friendly or multi-purpose cleaning products.

Consumer Trends

  1. Affordable Essentials
    • Categories like Makeup, Snacks, and Home Care Supplies show strong consumer preference for budget-friendly products.
    • These categories are ideal for cross-promotions or subscription models.
  2. Premiumization
    • High performance in Fitness, Fragrance, and Skincare highlights growing demand for premium products.
    • Introduce luxury packaging and exclusive bundles to capitalize on this trend.
  3. Comfort and Self-Care
    • Sleepwear and Haircare categories demonstrate the rising importance of comfort and self-care among consumers.
    • Leverage these trends for marketing campaigns targeting relaxation and wellness.

Recommendations

  1. Focus on Fast-Moving Categories:
    • Increase ad spend for Makeup, Snacks, and Haircare due to their high volume and consistent margins.
    • These are categories with broad appeal and potential for upselling.
  2. Target Niche Categories for Growth:
    • Invest in marketing for Trading Cards, Artificial Gemstones, and Women’s Sleepwear to maximize underutilized revenue potential.
    • Position these products with targeted ads to specific demographics.
  3. Bundle Strategies:
    • Create bundled products in categories like Fragrance (seasonal scents), Sleepwear (paired with skincare), and Fitness (equipment + apparel).
    • Bundles can boost average order value and loyalty.
  4. Dynamic Pricing and Seasonal Promotions:
    • Offer discounts on categories like Home Care Supplies and Snacks to drive volume.
    • Implement seasonal campaigns to capitalize on peak demand periods.

Related Posts

Join Our Community
Join Our Community