Flip: The new app from the USA in our sights - can it overtake TikTok?

The social media market is in a constant state of flux. New apps regularly appear in the app store and attempt to challenge established platforms such as Instagram, Temu or TikTok. One of these new apps is Flip, which has caused a stir in recent months primarily because the company is the leading US platform in personalized e-shopping "Curated" has bought up. But can Flip really become a serious competitor to the short video giant TikTok and its shopping function TikTok Shop and thus firmly establish itself in social commerce? And in which direction is the social commerce megatrend developing worldwide? We have summarized the most important facts for you.

Social commerce on the rise

One of the central features of Flip is its strong focus on Social Commerce. Users can discover and buy products directly in the videos without having to leave the app. This seamless integration of shopping and entertainment is a Trendwhich has become increasingly important in social media in recent years and continues to grow in importance. Pioneers in the field of social commerce include TikTok ShopThe Chinese social media giant also owes much of its success to the seamless shopping functions in the app, in addition to the platform's popular short videos.

It is therefore all the more important to look at the current figures and statistics: The U.S. Boston Consulting Group (BCG) published a detailed report back in 2023 that looks at the market share and volume of social commerce in the e-commerce industry. The report shows that the volume of social commerce transactions in China rose by 52% to 350 billion dollars between 2016 and 2021. A further increase to 900 billion dollars is forecast by 2025. In comparison: in the USA, the social commerce market only generated around 37 billion dollars in 2021, and is expected to grow by 2025 Expert:inside with an increase to 80 billion dollars.

Social commerce is gradually becoming one of the most important pillars of international online retail. But what makes Flip different? And is the US spin-off a serious competitor for the Chinese top dog TikTok?

The strengths of Flip

The US app Flip has only been on the market since 2021 and its user interface is similar to TikTok Shop. Flip also presents products in video presentations and gives customers the opportunity to make purchases directly via the app. With currently around five million users, you can find over 5,000 brands on Flip. The app's users are predominantly in the 25 to 45 age category.

However, it is the subtle differences to TikTok that make the app more attractive to US consumers: unlike conventional marketplaces, Flip curates every brand in its portfolio and around 70 percent of all seller requests on the platform are rejected. This process creates trust among customers and conveys the feeling that users of the app are ordering high-quality goods from verified sellers. Flip founder and CEO Noor Agha describes his company's strategy as follows: "In an age where most shopping platforms rely heavily on algorithms, our focus remains on creating a people-powered shopping experience that fosters genuine connections and personal recommendations, ensuring our customers receive the best possible guidance and Satisfaction."

An elementary component of TikTok marketing is relying on influencers to promote products. Flip, on the other hand, places great value on authenticity: Influencers are not allowed to advertise products on the platform; only genuine - and pre-authenticated - customer reviews are allowed to post a video product review for up to one minute. With this approach, Flip wants to create trust among its customer base and maintain the authenticity of the products and sellers.

Outlook

There is no question that social commerce and content creation can deliver significant growth for brands. A good implementation and transformation of online retailers and their e-shops to "social-first" should be part of every marketing strategy from today at the latest, because the change in the customer journey from web-based shopping to social media-based shopping is already in full swing. This is also confirmed by McKinsey's figures: by 2025, social commerce is expected to increase to 79.6 billion dollars and thus 5.2 percent of total e-commerce sales. predicted.

Flip is an interesting new app that has the potential to offer customers a real alternative. The unique selling points of the app are authenticity, a limitation of influencer influences and high-quality products, as sellers on the platform are subjected to thorough checks. Whether Flip can actually become a serious competitor to TikTok Shop remains to be seen. Much will depend on how successfully Flip manages to further expand its user base and develop new innovative features in the app.