With TikTok's future uncertain in the United States, its e-commerce division, TikTok Shop, is making significant strides into Latin America. Launched in Mexico earlier this year, the platform is attracting both local and international brands, offering them a gateway to one of the world's fastest-growing e-commerce markets. This expansion not only diversifies business opportunities but also serves as a strategic hedge against potential restrictions in the US market.

Potential Opportunities for US Brands in Mexico

The entry of TikTok Shop into Mexico opens up a wealth of possibilities for US brands looking to expand their reach. By venturing into this burgeoning market, businesses can tap into an audience that is increasingly embracing online shopping. Several prominent US companies are already planning their moves, including beauty and tech brands, recognizing the potential for growth beyond their home turf.

Mexico's e-commerce sector is projected to witness substantial growth, with EMARKETER forecasting it to be among the top five fastest-growing markets globally in 2024. Major retailers like Amazon and Walmart are investing heavily in the region, further underscoring its potential. For US brands, entering Mexico through TikTok Shop provides a robust infrastructure and a platform that has already proven successful in other regions. Social-commerce agencies like Outlandish and Orca are facilitating this transition by offering comprehensive services, from logistics to compliance, ensuring smooth operations for new entrants.

Navigating the Mexican Market with TikTok Shop

For brands considering expansion into Mexico, TikTok Shop presents a streamlined approach. Agencies such as Outlandish are assisting US merchants by registering local businesses on their behalf and providing essential support services. This "merchant of record" strategy simplifies the process, allowing brands to focus on product quality and marketing. Additionally, these agencies are setting up joint ventures and training local staff, ensuring that businesses can thrive in this new environment.

William August, CEO of Outlandish, emphasizes that success in Mexico hinges on having a compelling product. The company has already dispatched livestream training managers to Mexico, preparing local teams to leverage the platform effectively. With plans to establish a video production hub capable of generating thousands of shopping videos, Outlandish aims to enhance brand visibility and engagement. Meanwhile, Orca is collaborating with third-party logistics providers to manage inventory and ensure regulatory compliance. Both agencies agree that while navigating a new market can be challenging, TikTok Shop offers a unique opportunity for brands to grow and diversify their presence.