TikTok Shop, the app’s e-commerce marketplace, boasted a GMV of nearly US$9 billion in Southeast Asia in the first half of 2023, according to a person close to TikTok. Among them, 125 million are from Indonesia, the region’s biggest economy, according to Chew. TikTok has more than 325 million monthly active users in Southeast Asia, covering nearly half the region’s population. By 2025, the regional GMV is expected to reach US$211 billion.īetting on its 1 billion monthly active users worldwide, TikTok in recent years has pushed to commercialise its popular short video services to create a new revenue stream. Inc., total e-commerce gross merchandise volume (GMV) in Southeast Asia surged from US$10.9 billion in 2017 to US$131 billion last year, a compound annual growth rate of 64%. And TikTok will have to navigate political and data security risks while also upgrading warehousing, logistics and digital payment capabilities.Īccording to a joint report by Google, Singapore sovereign wealth fund Temasek Holdings Pte. There are regulatory, social and cultural complexities across the region. It is going up against homegrown rivals backed by Chinese e-commerce titans Tencent Holdings Ltd. (Bay Ismoyo/AFP)Īs much potential as the region holds, making money from e-commerce in Southeast Asia will be no slam dunk for TikTok. TikTok CEO Chew Shou Zi delivers his opening speech during the TikTok Southeast Asia Impact Forum 2023 in Jakarta, Indonesia, on 15 June 2023. According to the World Economic Forum, more than half of Southeast Asia’s population is under 30. What makes the region more promising is its fast-growing youth population. The economy is projected to reach US$5.19 trillion in 2027. According to Frost & Sullivan, Southeast Asia’s nominal GDP expanded from US$2.96 trillion in 2018 to US$3.53 trillion in 2022, with a compound annual growth rate of 4.5%. The region has become one of the fastest-growing economies in the world. Southeast Asia, an 11-nation region with 682 million people and combined GDP approaching US$4 trillion, is expected to be the next growth engine for e-commerce businesses, thanks to the region’s growing population and improving infrastructure. TikTok, the global short video sensation backed by China’s ByteDance Ltd., will pour US$12.2 million over the next three years into supporting more than 120,000 small businesses and entrepreneurs in the region, Chew said. “We are going to invest billions of dollars in Indonesia and the rest of Southeast Asia over the next few years,” TikTok CEO Chew Shou Zi said at a forum in Jakarta in June. TikTok, the world’s biggest short-video app, is pushing into the e-commerce business in Southeast Asia, stirring a new round of competition in the fast-growing market. (By Caixin journalists Bao Yunhong, Sun Yanrang, Guan Cong and Hao Shuai)
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