TikTok is making drastic strides in the ASEAN e-commerce market, but is still behind regional competitors such as Lazada and Shopee.
TikTok began rolling out the TikTok Shop sales feature in 10 ASEAN countries in 2021. Since then, the total merchandise value (GMV) on TikTok Shop is estimated to increase 7 times.
This is data recently published in a report by consulting firm Momentum Works (Singapore).
Speaking at a conference in Jakarta (Indonesia), TikTok CEO Shou Zi Chew announced that the company will expand its presence in the Southeast Asian market, which is currently the "playground" of giants like Sea and GoTo.
“We will invest billions of dollars in Indonesia and Southeast Asia over the next few years,” Chew said.
According to TikTok CEO, the platform currently employs 8,000 employees here, up from about 100 when it first entered the market 6 years ago.
Weihan Chen, analyst at Momentum Works, commented that TikTok is extremely determined to promote e-commerce in Southeast Asia.
Momentum Works estimates GMV from paid orders at major digital retail platforms, as well as interviews with industry experts and private calculations.
Despite achieving significant progress, TikTok Shop is still overwhelmed by larger competitors.
Ranking cannot stop TikTok Shop's ambition to capture a larger retail "piece of the pie" in ASEAN.
TikTok is taking advantage of its huge user base to attract online shoppers.
The company also launches many promotions to attract both buyers and sellers.
Ng Chew Wee, TikTok Asia-Pacific Business Marketing Director, affirmed that TikTok Shop is the convergence of content and commerce, not only empowering local businesses to reach a rapidly growing customer base, but also providing exciting entertaining content.
(According to Nikkei)
