Major Collaboration Announcement
The URENET Group, a prominent player in online advertising with its headquarters located in Fukuoka, Japan, has officially announced a strategic partnership with Koseido Corporation, one of Japan's leading beauty companies listed on the Tokyo Standard Market. This collaboration marks the formal initiation of a project aimed at leveraging TikTok's commerce platform to achieve significant market influence.
A Union of Respected Brands
Founded in 1948, Koseido boasts 77 years in the cosmetics industry and generates an impressive annual revenue of approximately 21 billion Japanese yen. Combining this legacy with URENET’s innovative approach to TikTok Shop operations provides a powerful model driven by Gen Z consumers' buying power. URENET's subsidiary dedicated to cross-border e-commerce, a central figure in this collaboration, has signed a contract to manage TikTok Shop operations for Koseido, paving the way for a comprehensive support project that harnesses TikTok's dynamic shopping features.
Captivating Gen Z with TikTok
The project aims to capitalize on the robust purchasing trends of Generation Z, who are known for their compelling demand for immersive shopping experiences. By merging Koseido's high-quality craftsmanship with URENET’s expertise in live commerce and algorithm optimization, the partnered brands will create engaging narratives and product experiences designed to resonate with this influential demographic. The collaboration intends to generate a substantial impact in the TikTok Shop domain in its initial month, with estimates suggesting the global GMV of TikTok reaching approximately $32.6 billion in 2024.
Comprehensive TikTok Strategies
To launch successfully, the partnership will utilize a unique "TikTok First" methodology that emphasizes video visibility and instant purchase rates from product conception to launch. Specific initiatives include:
- - Live Shopping & Shoppable Videos: This will serve as the foundation for product development, ensuring products align with TikTok's visual storytelling format.
- - Leveraging SKUs and AI Tools: Koseido’s extensive product lineup, combined with URENET’s AI-driven creative generation, allows rapid prototyping and implementation for live sales campaigns.
- - Influencer Collaborations: Engaging multiple Gen Z influencers right out of the gate will be key to building a robust follower base and achieving quick sales.
- - Real-Time Data Analysis: URENET’s AI tools will analyze TikTok Shop dashboard insights, providing invaluable support for optimizing advertising campaigns.
Envisioning the Future
As the collaboration gears up for 2025, projected to be a pivotal year for TikTok Shop in Japan, URENET aims to capture immediate value for both companies through hybrid revenue models, blending fixed retainers with performance-linked royalties.
The strategic partnership not only responds to a rapidly evolving e-commerce landscape but sets a precedent in the utilization of advanced digital marketing tools tailored for the TikTok platform.
The Koseido Identity
Koseido has built a reputation as a comprehensive planning manufacturer in the cosmetics industry, offering thousands of products across cosmetics, beauty goods, apparel, and character merchandise. Committed to high quality at reasonable prices, Koseido is investing in the development of brands aimed at Gen Z while leaning into effective social media marketing strategies. This partnership positions Koseido to maintain its competitive edge in a dynamic market by streamlining engagement and communication pathways through platforms like TikTok Shop.
Economic Impact and Expectations
UREDNET and Koseido foresee substantial contributions to their financial performance, particularly with anticipated expansions in the domestic TikTok Shop market, projected to reach 300 billion yen by 2025 and over a trillion yen in 2026. This partnership is not just a business arrangement; it is symbolic of how heritage brands can successfully adapt to the digital landscape, marrying long-standing expertise with new-age platforms like TikTok.
With the commitment to capture the 'early bird' advantage in an underexplored market, URENET and Koseido are poised for success, bringing together unique strengths to foster a new model of co-creation and innovation in retail. Investors and onlookers are advised to keep a keen eye on this developing situation, as its potential to reshape the market landscape becomes increasingly clear.