On December 11, it was reported that TikTok will cooperate with Indonesia's PT Goto Gojek Tokopedia Tbk (GoTo) to restart its e-commerce business in Indonesia.
According to the agreement,The Tokopedia and TikTok Shop Indonesia businesses will be merged under the PT Tokopedia umbrella, TikTok will hold a controlling stake in PT Tokopedia.
It is understood that Goto was merged by the Indonesian travel giant Gojek and another local giant, Tokopedia, in May 2021, which is equivalent to the merger of Didi and ** in China. Founded in 2009, Tokopedia is currently the largest e-commerce platform in Indonesia.
Source: goto
In October this year, the Indonesian side issued a ban on the trading of goods on local social **, cutting off TikTok's way to develop social e-commerce in Indonesia.
Since then, TikTok has been campaigning for the resumption of its e-commerce business in Indonesia. Previously, it was also revealed that TikTok will return to the Indonesian e-commerce market through the "curve" method of cooperating with one of the local e-commerce platforms.
The official announcement this time is to finalize which e-commerce platform to cooperate with.
According to a report by Reuters, TikTok will start with 8US$400 million acquisition of Tokopedia, Indonesia's largest e-commerce platform75.01% of the sharesand through the platform, TikTok Shop's e-commerce business in Indonesia will be launched.
Source: Reuters.
The announcement also shows that TikTok has promised to continue to invest in the platform in the future$1.5 billionto provide the capital needed for the business, but without further diluting Goto's equity.
At the same time as announcing the cooperation partner, TikTok also immediately announced the next one to be held in IndonesiaBeli Lokal Event Date – December 12。Other e-commerce platforms are also underway in Southeast Asia's Double 12 shopping festivals, and TikTok is still catching up in Indonesia.
I have to say that being rich is capricious, and if you can't do it, you can buy a local platform and enter the market again. However, in Southeast Asia, this kind of investment as a "gold owner" model is not uncommon, Southeast Asia's two major e-commerce platforms Lazada and Shopee, behind the shadow of Ali and Tencent respectively.
Source: GOTO, the announcement said that more than 90% of the companies on the platform are small, medium and micro enterprises.
Why goto?
TikTok doesn't have many options, and his departure was full of political factors. So,Local, beneficial to small and medium-sized enterprises, which has become an important influencing factor for TikTok to choose a partner to work with.
PT Goto Gojek Tokopedia TBK is the largest digital ecosystem in Indonesia, and according to its official website, services include: on-demand services (mobile, food delivery and logistics), e-commerce (third-party marketplace + official store, instant commerce, interactive commerce and rural commerce), fintech (payment, financial services and through Gojek, Tokopedia, Goto Financial and Goto). The logistics platform provides merchants with technology solutions) and logistics (fulfillment and delivery).
From platforms to logistics to payments, Tokopedia, with its local roots, is a perfect partner to partner with for e-commerce business in Indonesia.
Source: goto
Why do you have to go back to Indonesia?
First, there is a population base as a guarantee. Indonesia has 2700 million people, of which1.2.4 billion are TikTok users。At this level, the penetration rate and user base, if you don't do more conversions, it will be a great loss for TikTok.
Second, Indonesia's e-commerce is developing rapidly. According to a report by Google, Temasek Holdings and Bain & Company, e-commerce in Indonesia will expand from $62 billion this year to about 2030$160 billion
Third, Indonesia is also an important part of winning the Southeast Asian market. According to the data released by the General Administration of Customs, in November, whether it is a single month or a cumulative export volume from January to November, Southeast Asia has surpassed Europe and the United States and become China's largest exporter.
Source: General Administration of Customs.
Indonesia is the largest country in Southeast Asia and one of the most economically developed countries in Southeast Asia, Southeast Asia is becoming more and more important in China's overseas territory, so winning Indonesia is also an important step for cross-border e-commerce platforms to improve their influence in Southeast Asia.
From most of the cross-border borders.