What: Major entertainment and social media platforms are aggressively expanding into retail through multi-channel strategies, capturing USD 361 billion in social commerce sales whilst launching physical retail spaces.

Why it is important: The convergence of content and commerce is revolutionising how consumers discover and purchase products, as evidenced by 57% of TikTok Shop transactions coming from new customers, demonstrating these platforms' unique ability to drive both engagement and sales.

The retail landscape is experiencing a significant transformation as content platforms like TikTok, Netflix, and YouTube venture into commerce. These companies, originally designed for entertainment and social connection, are now developing sophisticated retail capabilities through shoppable content, dedicated marketplaces, and physical retail spaces. Netflix's ambitious plans include launching 100,000-square-foot experiential venues in Dallas and Philadelphia, featuring show-inspired dining and merchandise. Meanwhile, social media platforms, particularly TikTok, are revolutionising shopping behaviors, with projected social commerce sales expected to reach USD 800 billion by 2028. The platform's success in markets like China, where its sister app Douyin has become the largest online beauty retailer, demonstrates the potential of this hybrid model. Despite regulatory challenges, including potential bans in the US, these platforms continue to reshape consumer expectations and challenge traditional retail boundaries, forcing established retailers to adapt to a new era where entertainment, social interaction, and shopping are increasingly intertwined.

IADS Notes: The transformation of content platforms into retail powerhouses, as described in the article, is substantiated by significant market developments throughout 2024 and early 2025. TikTok Shop's emergence as the second-largest e-retailer behind Amazon during UK's Black Week in December 2024 demonstrates the platform's remarkable evolution from social media to commerce. This shift is particularly significant given that 23% of Gen Z purchases are influenced by viral TikTok trends, representing a substantial portion of their USD 360 billion spending power. Traditional retailers are responding to this disruption by adapting their strategies, as evidenced by Barnes & Noble's successful leverage of BookTok's influence. The trend extends beyond digital platforms, with Netflix's planned 100,000-square-foot experiential spaces aligning with the broader industry movement toward "third spaces" that blend entertainment and retail. This transformation is reshaping consumer expectations, with retailers increasingly integrating technologies like AR and RFID to create seamless experiences that bridge the digital-physical divide.

Why content platforms like TikTok and Netflix are turning to retail