The TikTok effect: Brands that are using TikTok to win the digital shelf

A video posted at 9pm becomes the reason shoppers rush to Coles the next morning. A skincare routine sparks demand for a once-niche product that sells out nationwide (snail mucin anyone?). A dance challenge ends with sales spikes for a brand that never planned for it. This is the TikTok effect - the shrinking of the consumer funnel from discovery to purchase in hours, not weeks. For FMCG and CPG brands in Australia, this shift is rewriting the rules of demand, distribution, and marketing readiness. 

TikTok’s unique power lies in how discovery happens. Unlike traditional social platforms that rely heavily on who you follow, TikTok’s For You Page serves up an endless stream of content tailored by behaviour and signals. The algorithm doesn’t just suggest - it propels. One viral video can drive millions of impressions overnight, and when the content centres on a product, the leap from awareness to intent to purchase can be near-instant. This is why TikTok has become both thrilling and terrifying for brands: it creates new demand peaks they can’t always predict and sometimes can’t meet. 

It’s worth noting however that TikTok isn’t just about fun trends, it’s also reshaping serious consideration. Research shows 39% of Australian social media users now turn to TikTok to keep up with trends, and nearly 8.5 million Australians are active adult users. Users spend more than 90 minutes per day on the app, a staggering figure that rivals traditional TV. Within that time, people are researching skincare routines, recipes, fitness hacks, and even financial advice. Discovery doesn’t just mean entertainment; it increasingly means product research. That’s a direct challenge to search engines and a clear opportunity for brands to position content where it counts. 

Another layer of the TikTok effect is how it blends community with commerce. A viral recipe trend might feature a specific ingredient, which then spikes in sales (such as the Knorr Aromat seasoning). But the ripple effect extends further - other brands in the category can benefit if they move fast to attach themselves to the conversation. For example, if a certain hot sauce goes viral, competitors can run TikTok ads targeting people engaging with that content, nudging them to consider alternatives.  

From zero to 100 in an instant 

In Australia, the effect is very real. A recent example saw Pascall Clinkers surge in sales after a TikTok trend dubbed the “Clinker Challenge.” Videos of friends guessing the colour inside the chocolate-coated lolly went viral, with one creator alone pulling millions of views. Sales spiked by nearly 60% at Coles in the weeks that followed. Clinkers hadn’t changed its marketing. TikTok did the heavy lifting, compressing discovery, intent, and purchase into one viral loop. 

This is the key shift: the funnel is collapsing. What used to be a long cycle of awareness campaigns, research, comparisons, and then purchase is now a swipe away. TikTok shortens decision-making, particularly for impulse-driven categories like confectionery, beauty, and household staples. And once someone participates in the trend, they’re not just a customer - they become part of the content machine that fuels further demand. 

Brands are starting to respond. Cotton On, for instance, has used TikTok not only for upper-funnel engagement but for full-funnel performance. A Black Friday campaign integrated catalogue ads and web conversion formats, delivering four times higher return on ad spend and stronger conversion rates. This proves TikTok isn’t only about virality and hype; with the right creative and paid support, it can convert at scale. 

Globally, skincare brand CeraVe has become a TikTok phenomenon, with #CeraVe content generating billions of views and driving consistent retail sales. In Australia, supermarket products from cleaning sprays to instant noodles have all had viral moments that shifted demand overnight. The lesson isn’t to chase every trend, but to be positioned so that when a trend lands on your product, you can capture it. 

Why creators are part of the secret sauce  

The TikTok effect also changes the role of creators. In traditional influencer marketing, creators were brand megaphones. On TikTok, they are product discovery engines. Their content feels personal, peer-like, and highly trusted. When they recommend a moisturiser for sensitive skin, it often outperforms brand ads because it comes with perceived authenticity. The implication is clear: brands must treat creator partnerships as core to product launches and always-on strategies, not just campaign add-ons. 

Planning for the unplannable 

So how do brands plan for something that feels unplannable? The reality is, you can’t engineer virality. But you can prepare for it.  

Success on TikTok requires a new kind of readiness - creative, operational, and analytical. 

First, creative readiness. Content on TikTok moves at the speed of culture. Brands that succeed are those who produce assets fast, in native formats that feel authentic. 

Polished brand ads often flop, while scrappy, creator-style content thrives. Having a roster of creators or an in-house team that can jump on trends quickly is no longer optional - it’s critical. Seeding products with micro-influencers, giving them freedom to interpret, and being ready to boost winning content through paid placements is how many CPG brands are finding traction. 

Second, operational readiness. Viral demand is only an opportunity if you can fulfil it. Many Australian FMCG and CPG brands have been caught flat-footed when TikTok surges wipe stock from shelves. Supply chains and inventory systems must be agile enough to respond quickly, with contingencies for restocking or even limited-edition drops to capture momentum. Retailer collaboration is vital here - if Coles or Woolworths can’t replenish fast enough, the opportunity is lost to another product or private label alternative.  

Third, analytical readiness. One of TikTok’s challenges has been measurement. But the platform is rapidly evolving. TikTok recently launched tools like Brand Consideration and TikTok Market Scope in Australia, designed to show performance across the funnel. This matters for CMOs and digital leads under pressure to prove ROI. Planning for virality also means aligning measurement beyond TikTok itself. Many sales still happen in traditional channels: supermarkets, pharmacies, online retailers. Brands need to triangulate data: TikTok engagement metrics, retailer sales spikes, and brand search uplift. When aligned, the picture of TikTok’s impact is clearer, and it becomes easier to justify ongoing investment to leadership teams. 

But the risks are real. TikTok virality can expose weak spots just as quickly as it creates demand. If stock is unavailable, consumers grow frustrated. If product quality doesn’t match the hype, backlash spreads equally fast. And because TikTok thrives on remixing and commentary, brands can’t always control the narrative once the content is out. Preparing crisis comms alongside creative calendars is part of playing in this space. 

The opportunity and threat 

So, what’s the opportunity and the threat for Australian brands? The opportunity is clear: TikTok offers a compressed, high-velocity path to consumer hearts and carts. It’s cultural capital and sales pipeline rolled into one. The threat is that without readiness - in content, supply, and measurement - brands risk wasted opportunity or worse, consumer disappointment. 

The TikTok effect is not going away. In fact, with TikTok Shop set to launch in Australia in the near future, the loop from discovery to purchase will become even tighter. 

Shoppable videos, live commerce, and in-app checkout will mean the funnel shrinks further still. Brands won’t just need to be present; they’ll need to be integrated. 

For CMOs and digital leaders in FMCG and CPG, the mandate is clear. Build TikTok into the always-on strategy – not just as a marketing channel but as a channel strategy for growth and distribution. Treat creators as core partners. Invest in agile creative pipelines. Ensure supply chains can flex with viral demand. And get serious about measurement, both on-platform and off. 

The TikTok effect is reshaping discovery, purchase, and loyalty in real time. The brands that thrive will be those who don’t just ride the waves of virality, but prepare for them - ready to convert a scroll into a sale before the moment passes. 

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At Arktic Fox, we help FMCG and CPG brands prepare for the TikTok effect — building the right creative, data, and commerce foundations to turn viral moments into lasting growth. If you want to be ready when the next wave hits, let’s talk.