TikTok Shop is expanding rapidly across Europe as social commerce gains traction. However, its impact on established online fashion retailers remains limited, according to a Goldman Sachs report.
The platform has built an attractive ecosystem for consumers, creators, and smaller brands, driving growth through short-form video and affiliate marketing.
Sales in Europe are growing since its launch in France, Germany, and Italy last year. In Germany, TikTok Shop generated about $195 million in sales across top 10 categories in 180 days. France saw $152 million, Spain $118 million, and Italy $107 million.
These figures are well below mature markets like the US and UK.
Top-selling categories include cosmetics, shapewear, supplements, cleaning products, and household appliances. Sales are driven by in-feed videos rather than livestreaming.
Affiliates account for over 80% of sales for leading merchants. Despite growth, there's limited overlap with major fashion retailers' core offerings.
Next and Zalando have continued gaining market share. Goldman Sachs maintains Buy ratings on both, noting Zalando could benefit via logistics services.
