Author |Li Xiaoxia.
Edit |Qiao Qian.
A piece of TikTok's heart disease has finally been resolved.
On December 11, TikTok officially announced that it had reached an e-commerce strategic cooperation with Indonesian Goto Group. TikTok's Indonesian e-commerce business will merge with Tokopedia, an e-commerce platform owned by the Goto Group, and TikTok will acquire a 75-controlling stake in the joint venture.
According to public information, Goto is the largest Internet technology company in Indonesia, with Indonesia's local e-commerce platform Tokopedia and mobile service platform Gojek, Alibaba and Tencent are its shareholders. Tokopedia is Indonesia's largest homegrown e-commerce company with a market share of 35%.
TikTok e-commerce will also re-launch on December 12, Indonesia's National Cyber Shopping Day. TikTok has also pledged to invest $1.5 billion in the coming years to fund future business development.
According to 36Kr, the purchase process of TikTok Shop after the relaunch is the same as the original, except that there is a Tokopedia logo in the background.
In October this year, TikTok e-commerce was banned due to Indonesia's **ban on social networking** to carry out e-commerce business. Since the incident, TikTok CEO Zhou Shouzi has been campaigning for the fate of TikTok e-commerce in Indonesia.
A month ago, two possible directions for TikTok e-commerce in Indonesia emerged: opening a new e-commerce platform in Indonesia, or cooperating with a local e-commerce platform in Indonesia.
Now, the dust has fallen, but it is unknown if the importance of this market will change.
Important Position Questions
In 2021, TikTok began to test the waters of e-commerce, and launched TikTok Shop in Indonesia in February, followed by a small store and live streaming in the UK.
According to statista data, the number of e-commerce users in Indonesia has reached 17.8 billion people, compared to 1That's an increase of 1279%, and this year, the number of e-commerce users in Indonesia is expected to continue to grow to 19.6 billion people, almost breaking the 200 million mark.
Indonesia, which has a relatively complete consumption, logistics and payment system, has quickly become one of the important markets for TikTok e-commerce. Last year, the average monthly GMV of the Indonesian market reached US$200 million, while the average monthly GMV of the UK market was only US$24 million.
According to data from Singapore-based VC agency Momentumworks, in 2022, Indonesia's e-commerce transaction volume will be about US$52 billion, of which about US$2.5 billion will come from TikTok.
Later, TikTok Shop was launched in Malaysia, Thailand, Vietnam and other countries, and the Southeast Asian market gradually grew into an important position, and last year, TikTok e-commerce GMV in the Southeast Asian market was 4.4 billion US dollars, and Indonesia alone accounted for 57%.
At the beginning of the year, TikTok e-commerce set an annual target of 20 billion to 23 billion US dollars, of which the Southeast Asian market is more than 12 billion US dollars. In the second quarter of this year, TikTok surpassed Lazada with a 20% share in Vietnam, becoming the second largest local e-commerce platform.
In June, Zhou Shouzi said at a forum in Jakarta, Indonesia, that he would invest billions of dollars in Southeast Asia in the next few years. The importance is self-evident.
After the ban, TikTok Indonesian merchants began to look for a way out and turned to Shopee, Lazada and other platforms, but some merchants told 36Kr long before that they felt that TikTok e-commerce would return to Indonesia sooner or later.
In July this year, Momentumworks, which expects TikTok Shop's market share in Southeast Asia to reach 13About 2%. After the ban was issued, MomentumWorks adjusted the ** to 139%, although with the return, the market share is expected to increase to 15%.
According to 36Kr, before the ban, the daily GMV of the Indonesian market was 12 million to 15 million US dollars, and the GMV of some important ** activities will be doubledThailand's daily GMV is now about $12 million (it will double during the event), and Vietnam's daily GMV is also more than $10 million.
According to the Caixin report, after the shutdown of Indonesia, during the "Double 11" period, TikTok e-commerce increased more in Vietnam, Thailand, Singapore, and Malaysia, and finally TikTok e-commerce Southeast Asia GMV increased by 5 times year-on-year from November 14 to 20, and the sites in the five countries all refreshed the single-day historical record, while Thailand's GMV increased by nearly 10 times year-on-year.
However, due to Indonesia's influence, Southeast Asia's $12 billion goal may be difficult to achieve.
Another position protruded
Not long ago, after the news of TikTok's e-commerce return to Indonesia was exposed, some voices said that with the gradual reduction of the relative importance of the Indonesian market, TikTok Shop's energy and core resources invested in Indonesia may also be adjusted.
The reason for this is that the importance of the U.S. market is emerging.
It is reported that the GMV of TikTok Shop North America on Black Friday this year has far exceeded the single-day GMV before the ban on the Indonesian market. And according to ** report, TikTok has set a sales target of $16 million per day for Black Friday. Previously, 36Kr also mentioned that this year's TikTok e-commerce GMV task in the United States is 5 billion US dollars, which has exceeded the performance of the entire Southeast Asian market last year.
In fact, the United States has always been a market that TikTok e-commerce wants to win, and TikTok has 1With 500 million monthly active users, nearly 45% of the total population, there is huge potential for consumption.
According to a late latepost report, when TikTok decided to do e-commerce on the first day, what he wanted to do most was the U.S. market, and when it was clear that the project was going to be established around September 2020, the then U.S. **Trump issued an executive order: requiring TikTok to be removed from the United States and spun off from ByteDance's parent company. As a result, the first two pilot sites could only be placed in Indonesia and the United Kingdom.
In November last year, TikTok e-commerce began to test the waters in the United States, only local merchants opened stores, but due to the high threshold, the progress was not smooth, and later on the basis of local stores, the United States cross-border full closed-loop store (Chinese license), American cross-border brand store (one-to-one directional invitation), etc.
In September this year, TikTok e-commerce was officially launched in the United States, and the full custody model was fully launched, similar to Temu, sellers only need to send goods to Guangzhou Huadu warehouse of TikTok e-commerce, and the platform is responsible for store traffic and operation.
Not long ago, TikTok e-commerce also opened the "merchant self-operation model" in the United States, where merchants are responsible for the whole process including product shelves, sales, marketing, logistics, etc., and can flexibly choose **and live broadcasts, short**, talent cooperation and other scenarios for sales according to their own capabilities, and participate in platform marketing activities.
The self-operation model of cross-border merchants of TikTok e-commerce in the U.S. market mainly invites three types of merchants to settle in, including U.S. local shipping merchants, brand overseas merchants, and merchants operating jewelry and crystal categoriesAnd in the recent past, it has increased the investment promotion efforts of relevant merchants, but the requirements are not low, such as no individual registration, and the GMV in the past two months must exceed 2 million US dollars, must be shipped in the United States, and cannot be a virtual warehouse, once the red line is triggered, it will face the risk of closing the store.
It is worth mentioning that 80% of the GMV of TikTok e-commerce in the United States is now from Daren Short**, and the investment promotion staff will also suggest that merchants go to build alliances with Daren more to achieve the purpose of testing products and increasing volume.
At least in the short term, the United States will be the key layout market for TikTok e-commerce. According to Caixin, since the warm-up of "Black Friday" at the end of October, Kang Zeyu, the head of TikTok e-commerce, led a team from Singapore to the United States to prepare for the war.
On November 30, TikTok Shop released a battle report, the overall growth of the "Black Friday" promotion in the U.S. market exceeded 215%, and the GMV on "Black Friday" increased by 4 times month-on-month. It is reported that considering the performance of the United States, TikTok e-commerce is expected to complete the GMV target of 20 billion US dollars this year.