TikTok Shop takes off in Indonesia

TikTok Shop may have stumbled in its efforts to break into western markets like the UK and the US, but it’s flying in Indonesia, especially during the recent Ramadan period.

Why it matters

The platform has garnered huge audiences in markets around the world and can see huge potential in turning them into shoppers. The experience in Indonesia shows what’s possible for TikTok Shop, as anecdotal evidence recounted by Rest of World indicates: stores livestreaming on the virtual marketplace report increased traffic versus other platforms and daily sales accelerating from hundreds of items to thousands. 

What’s happening

• TikTok Shop generated a reported GMV of $4.4bn across Southeast Asia during 2022.
• In Indonesia, where TikTok has an estimated 110 million users, the platform has invested in training sellers and backing them with incentives, including purchase subsidies and free shipping. 
• A network of agencies handles livestream presenters and shopfronts. One agency says its talent is booked out for the next five years.
• A small-scale study for TikTok found that two-thirds of TikTok users shop more on the platform during Ramadan. 

The politics of TikTok

“The US is concerned about TikTok because, for the first time, they have to think about what it means to have a large tech company influencing minds – and collecting data – that isn’t based in their own country,” observes Ross Tapsell, associate professor at the Australian National University, and an expert on new media in Indonesia.

“Southeast Asians have been dealing with this situation throughout the digital era. So, to some extent, there is nothing ‘new’ about TikTok if you take the view of many Southeast Asians that all ‘foreign-owned’ tech platforms are all harvesting local data to make money.” 

In any case, he adds, “the TikTok user base in Indonesia is now so large, and so engaged, that no government will want to ‘ban’ the app for fear of alienating younger voters”. 

Sourced from Rest of World

[Image: TikTok Shop]