Toy company Zuru credits TikTok for its 5 Surprise Mini Brands sales, an unboxing toy with miniatures of household products.
These household products include Dove shampoo, Jell-O gelatin, Hostess Twinkies, and more.
“A combination of fan-generated and TikTok influencer videos ignited the craze,” Renee Lee, vice president of global marketing at Zuru, told CNBC.
Zuru saw an average of 20 million to 25 million weekly views of videos that feature 5 Surprise Mini Brands. At its peak, Zuru's sales reached more than 250,000 capsules per week across North America.
Moreover, the company said its 5 Surprise Mini Brands are exceeding sales estimates. Its second series of capsules consists of items like Miracle Whip and Jet-Puffed Marshmallows. Its sales are more than 60% sold out at its top retailers after being launched just a few weeks ago.
“TikTok is unique in the fact that a user does not require a large following in order for a video to go viral,” Lee said. “So, we actively look for super creative, brand fans to work with versus just looking at high-profile influencers.”
Unboxing toys has become a trend in recent years as videos of people revealing the contents of their purchases become a hit on platforms like YouTube and Instagram. This trend became a hit on TikTok.
IMC Toys' success
During the pandemic, IMC Toys achieved success in its TikTok campaigns during the pandemic. The toy company offers VIP Pets, plastic dogs with super long hair. Users have to submerge these toys in water in order to reveal their unique color.
IMC Toy’s TikTok campaign gained over 5.7 million views, 10 times the estimate the company had predicted.
“In the U.S., initial retail quantities sold out in just two weeks and retailers chased inventory to restock for the holiday season,” IMC Toys told CNBC via email. “The buzz generated from TikTok and Instagram gave us an edge among competitors and boosted the overall appeal of this totally unique product.”
“A lot of the toy companies are not only doing advertising partnerships with the top personalities on Instagram, TikTok and YouTube, but they are branding a lot of these toys along with these kids or they are creating toys that allow kids to emulate what they see their favorite creators doing,” said James Zahn, senior editor of “The Toy Insider” and “The Toy Book.”
“There’s a direct correlation between that they do [on TikTok] and retail sales,” said Jim Silver, CEO of TTPM, an online toy review site. Silver also represents WeWearCute as their business manager.
Most popular app
According to Piper Sandler’s report, TikTok is the second most popular social app for American teens.
Findings showed that 34% of teens identify Snapchat as their favorite social app. Meanwhile, 29% chose TikTok. Behind TikTok and Snapchat was Facebook’s Instagram, with 25% of respondents selecting it as their favorite social app. TikTok ranked third in the spring 2020 version of the Piper Sandler report.
However, in terms of usage, the choices are quite different. Instagram grabbed the top spot with 84% engagement. Next is Snapchat at 80% and TikTok at 69%, up from 62% in the spring.
Findings show that TikTok is attracting market share among young American users, which are a key target for social apps. This group is next a key demographic for advertisers, which are the main source of profit for social apps.
