TikTok Shop is planning to launch a fierce attack, and the Indonesian market will witness a three-way battle among giants

TikTok Shop plans to enter the Indonesian market, leading to a three-way battle among big players

BusinessDialogue has learned that according to foreign media reports, TikTok Shop’s current goal is to defeat competitors such as Tokopedia and Shopee and become the leader in Indonesia’s e-commerce market.

“We hope to become the leader in the Indonesian market, and then make Indonesia the largest market in Southeast Asia.” Vonny Emita Susamto, the head of TikTok Shop’s incubation in Indonesia, said in an interview with the media on Tuesday, May 16.

According to a survey conducted by TikTok and DSInnovate on 1,500 small and medium-sized enterprises in Indonesia, the digital awareness of small businesses is increasing. The survey results are as follows:

• 87% of enterprises recognize the opportunities of digitization

  • The first quarter financial report of Sea, the parent company of Shopee, has been released, once again achieving profitability!
  • Nanhang Logistics International Cargo Terminal is now in operation; TikTok Shop’s fully-hosted mode is now online
  • A 300 billion market with few brands interested? Clothing and shoes for the disabled are booming

• 83.8% of enterprises have started to deploy various online services

• 91.3% of enterprises use social media as a marketing channel

• 72.5% of enterprises use social media to interact with consumers

• More than 80% of enterprises use social media for sales, including TikTok Shop

Pandu Nitiseputro, the head of small and medium enterprises in TikTok Indonesia, said that TikTok’s social e-commerce application incorporates the concept of entertainment for shoppers. They aim to attract consumers to shop on TikTok through real and entertaining content.

“It is this interaction between brands, creators, and the community that ultimately drives consumers’ purchasing decisions. Therefore, we encourage sellers to prioritize creating entertainment elements to promote consumers’ purchasing interest,” Nitiseputro added.

Nitiseputro also revealed the most popular product categories on TikTok Shop Indonesia, which include:

• Fashion

• Beauty and personal care

• Electronics

• Cooking

In addition, TikTok Shop’s “MajuBarengTikTok” program launched in Indonesia in 2021 has attracted more than 50,000 small and medium-sized enterprises. However, Nitiseputro did not disclose the average transaction volume or increase of sellers on TikTok Shop in Indonesia.

Editor ✎ Nicole/BusinessDialogue

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