Impact of US Ban on TikTok Suppliers of Creams and Candies – January 17, 2025 | Zonebourse

A potential TikTok ban in the U.S. could significantly impact American businesses that rely on the platform for marketing and revenue generation. With TikTok contributing $24.2 billion to the U.S. GDP in 2023 and supporting numerous jobs, business owners and influencers express concern over the future. Companies like Mama V’s Candy and Simply Mandys, which have thrived on TikTok, fear operational disruptions. As businesses pivot to other platforms, the importance of TikTok in the marketing landscape remains evident.

The Impact of a TikTok Ban on American Businesses

TikTok has emerged as a significant player in the American business landscape, reportedly generating billions for companies selling a variety of products including candy, beauty items, apparel, and more. However, this thriving economy faces an uncertain future. Recently, the Supreme Court unanimously upheld legislation that could ban TikTok in the United States, citing national security concerns.

Concerns from Business Owners and Influencers

Following the court’s decision, former President Donald Trump hinted at a forthcoming announcement regarding TikTok, though specifics were not disclosed. As a crucial marketing tool, TikTok not only generates substantial revenue for Bytedance but also supports countless users and merchants via sponsorships and transaction fees.

Many users act as brand ambassadors, promoting products and earning commissions through affiliate partnerships when their followers make purchases linked to their profiles. Additionally, TikTok compensates select creators for their video content, further embedding the platform in the marketing strategies of startups, consumer brands, and influencers.

One notable example is Mama V’s Candy, whose owner, Valerie Verzwyvelt, credits TikTok Shop for transforming her business. “Since launching TikTok Shop last year, we’ve gone virtually viral,” she noted, revealing that her company sold nearly 300,000 units and generated $6 million in 2024. As they plan for expansion, the looming ban has heightened her concerns about the future.

California-based Simply Mandys, an independent beauty brand, also faces potential setbacks. Co-owner Sven Greany expressed that a TikTok ban could abruptly halt operations, especially after a successful holiday shopping season where they earned over $20 million through the platform. Greany has indicated plans to shift marketing efforts to Instagram, but he worries that the absence of TikTok will lead to a significant loss of customers.

In anticipation of the ban, several businesses are offering discounts and sales to clear inventory, while influencers continue to promote clearance products to their followers. Reports from influencer marketing agency Billo suggest that creators with a following of 10,000 to 100,000 could earn approximately $2,000 per brand campaign, leaving many influencers anxious about their income should TikTok cease operations.

According to economic analysis by Oxford Economics, TikTok’s role in supporting small and medium-sized businesses contributed an impressive $24.2 billion to the U.S. GDP and supported 224,000 jobs in 2023. As many businesses devise contingency plans, e-commerce experts highlight a shift towards platforms like Instagram and YouTube that offer similar short-form video content.

Kory Marchisotto, chief marketing officer at e.l.f. Beauty, emphasized their commitment to adapting alongside their community, stating, “If they turn to other platforms in the future, we will be by their side.” The beauty industry is particularly invested in TikTok’s future, as it has rapidly become the go-to platform for beauty marketing, eclipsing previous favorites like YouTube and Instagram, according to British beauty brand Made By Mitchell’s founder, Mitchell Halliday.

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