In the second half of this year, live broadcast e-commerce launched a "encirclement and suppression war" in Indonesia. At the center of the storm is the short ** platform TikTok and its e-commerce.
Many people remember that at the end of September last year, Indonesia issued a ban on ** products on social platforms in order to protect local small and medium-sized enterprises. This provision is equivalent to a blanket ban on live streaming products. Indonesia was also the first country in the world to ban live streaming.
TikTok is the only social e-commerce platform in Indonesia, and this ban is simply "tailor-made" for this **. According to reports, before TikTok closed, there were more than 6 million domestic sellers, and more than 7 million live streaming practitioners and creators. The ban made it impossible for them to earn a living.
But no one expected that after only two months, the situation would change dramatically. On the eve of Singles' Day, TikTok announced its stake in Tokopedia and resumed e-commerce sales. On the same day, Indonesian SMEs and SMEs expressed their support for live streaming e-commerce to support the real economy.
Even more surprising is that Minister Zulkifli Hassan, who had been a strong advocate for TikTok to be banned, suddenly changed his mind, claiming that "local companies and foreign industries are allowed to cooperate" and hoped that "social e-commerce can support Indonesia's economic development." ”
The picture shows Indonesian Minister of Commerce Hassan in an interview with the Indonesian Time News Network tempoco)。
The relationship between online shopping and the real economy has caused widespread controversy at home and abroad. Many people, including former Indonesian**, believe that "live streaming will not fall" and "the real economy will not prosper". But, is it true?
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In Jakarta, the capital of Indonesia, Danah Abang is known for its shopping district and has become the largest textile and apparel market in Southeast Asia. Before TikTok was banned, it was said that businessmen in Dana Abang had complained to Indonesia, and many believed that TikTok had "stolen" their business.
Although the live broadcast has fallen, the tourists have not returned.
Photo from Al-Jazeera**, a corner of Dana Abang Market, Jakarta).
According to Al Jazeera, almost a month after the ban was imposed, the market in Danah Abang still does not see a bustling crowd. On the contrary, the amount of ** has been reduced by half.
Ronnievaskova, the owner of a shoe shop in Danabang, said his business had not received a "significant boost" from local authorities. "Recently, things have gotten a little bit better. But compared to before, it is still too far behind. Vaskito said.
And online sellers who previously relied on TikTok have been hit even harder.
Richard Lee, an influential beauty blogger in Indonesia, has 5.2 million followers. In August, Lee recorded a one-day sales of Rs 4,030 crore on TikTok livestream, breaking the record for direct sales in Indonesia.
Richard Lee, acknowledging after learning of the ban that it had inevitably affected his business, said: "I'm more concerned about my dozens of employees. If the ban is not lifted, I will have to fire many people.
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In the wake of the ban, economist Hastiadi, a former Indonesian commerce minister, said Indonesia's ban on TikTok e-commerce was a mistake.
Hastiadi harshly criticized the ban: "A lot of Dana Abang sellers were already selling online before the ban was introduced. Blaming TikTok's social commerce model for the decline of traditional marketplaces is a complete mistake. ”
Hastiadi believes that the decline in Indonesia's traditional markets is caused by a variety of factors. On the one hand, the purchasing power of Indonesia's low- and middle-income brackets has declinedOn the other hand, wholesalers in Africa and elsewhere in Asia have also reduced their sourcing needs in the wake of the pandemic. He pointed out that the blow to Indonesia's traditional market for cheap Chinese products claimed by Indonesia** is actually just a hypocritical excuse. Long before TikTok entered Indonesia, there was an influx of Chinese products into Indonesia. And live streaming has only emerged in Indonesia in recent years.
Simon Torring, co-founder of Cube Asia, a Singapore-based e-commerce research platform, said: "TikTok's livestreaming model is a real innovation in Indonesia's e-commerce market, and the ban will have a long-term impact on the e-commerce market. ”
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Soon after Indonesia's ** TikTok e-commerce, there were local ** reports that what Indonesia is really worried about is not the harm of e-commerce live streaming to the real economy, but the "high-quality and low-cost Chinese products" on TikTok.
According to Indonesia's biggest news**downsAs early as July, the Institute of Economic and Financial Development, an Indonesian think tank, criticized "Chinese products" on TikTok's platform as "a threat" to local companies. Indonesia's Minister of Small and Medium-sized Enterprises Tedden has persuaded Minister Hassan and Jokowi that Indonesia should prohibit TikTok from operating social networking and e-commerce at the same time. Both Chinese products and the TikTok platform have been threatened.
As soon as the ban came out, the American "Diplomat" wrote an article pointing out that TikTok's ban on e-commerce reflects Indonesia's sense of self-protection and rejection of foreign forces. For Indonesia to succeed economically, it must overcome fears of economic shocks abroad, according to The Diplomat. Indonesia** should adopt a competitive attitude, not avoid it.
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Since the end of November last year, a number of Indonesian** ministers, including ** ministers, have changed their stance and supported TikTok in partnering with local companies to support the live streaming industry. Many people believe that this is a change in Indonesia's attitude towards live e-commerce.
According to the Jakarta Globe, Indonesia's ** Minister Hassan gave the "green light" to TikTok's return to Indonesia and welcomed TikTok's return. He said that TikTok e-commerce can support SMEs and microenterprises.
Eddie Missero, Secretary General of the Indonesian SME Association, said that the cooperation between TikTok and Tokopedia will definitely have a positive impact on the company, especially for SMEs.
On December 12, TikTok e-commerce ushered in a big ** in Indonesia. Indonesia has also proved to the world that the relationship between live broadcast e-commerce and the real economy is not one or the other. And those small and medium-sized businesses affected by the storm are the happiest groups during this time. Their most important income** is to be deprived, and now everything is back to normal.