Why Gen Z Is Choosing TikTok Shops Over Malls

For a long time, malls were the center of consumer culture. Shopping malls weren't just places to buy things; they were also social hubs where people could meet friends, eat, and shop for the latest styles, for example, Westfield in London, the Mall of America in Minnesota, and Grand Indonesia in Jakarta. But for Gen Z, the mall has a digital address in 2025: TikTok Shop.

The Change: From Looking at Windows to Scrolling on Screens

The people who make up Generation Z were born between the mid-1990s and early 2010s. Their journey to buy something doesn't start at a store window; it begins with a 60-second TikTok video.

• Discovery: Influencers and micro-creators show off products in fun, natural ways.

• Engagement: Live shopping streams let people ask questions, see demos, and get discounts right away.

• Buy: Users can buy right in the app with just one click, so they don't have to go to the mall.

Why TikTok Shops Are Doing Well

1. Convenience: You can find, read reviews, and buy everything in one app.

2. Community: When people buy things, they feel like they're part of a community because they can comment, like, and recommend things.

3. Affordability: Small brands and independent sellers do well when it's easy to get started.

4. Entertainment Value: Unlike regular malls, shopping is both fun and valuable.

Case Studies

• Shein & Cider: TikTok is used by fast-fashion companies to start viral challenges that quickly boost sales.

• Fenty Beauty (Rihanna): Beauty creators' demonstrations create more demand than any tester in a store.

• Dyson and Shark: Cleaning "satisfaction" videos make household tech go viral, and products sell out overnight.

• Local Brands: In Southeast Asia, small businesses use TikTok Shop to go up against big companies from around the world.

What This Means for Shopping Centers

This change doesn't mean that malls are no longer critical. Instead, they are changing who they are:

• Changing into experience centers with food, fun, and pop-ups.

• Working with TikTok creators on campaigns that happen both online and offline.

• Becoming content studios where people film and share their shopping experiences.

The Future of Buying

For Gen Z, TikTok Shop is more than just a store; it's a way of life. The mall may still be there, but its competition is now on a phone screen that is always open and tailored to each person by algorithms. At Raffles Jakarta, our Digital Marketing and Business Management programs equip students to understand and master platforms like TikTok, enabling them to develop strategies that reach the next generation of consumers where they truly reside, online.

Curious how brands like ours engage on TikTok?

Watch our content on our TikTok account here: @rafflesjakarta.

Arman POUREISA

Marketing Manager

Business Management Lecturer

Raffles Jakarta

References

Business of Fashion. (2024, August 10). How TikTok is reshaping the future of shopping. Business of Fashion. https://www.businessoffashion.com

Forbes. (2024, July 22). Why TikTok Shop is winning Gen Z consumers. Forbes. https://www.forbes.com

McKinsey & Company. (2023, December 18). The future of social commerce: What brands need to know. McKinsey & Company. https://www.mckinsey.com

Reuters. (2025, January 12). TikTok Shop records explosive growth in Southeast Asia. Reuters. https://www.reuters.com

Vogue Business. (2025, March 15). Malls vs. TikTok Shop: The new battleground for Gen Z spending. Vogue Business. https://www.voguebusiness.com