TikTok is not the nemesis of small and medium sized enterprises

Mondo Finance Updated on 2024-01-29

People say that you are wronged, do you dare not be wronged?

Recently, a singer who doesn't have to sing himself for a concert has become popular again, and this singer likes to wear "really good" clothes.

It is said that this kind of clothing is very expensive, and only one set of one style is produced, because the second set cannot be sold if it is produced.

Don't look at the fact that we can now rudely complain about "really good", but a few decades ago, this fabric was desperate for everyone's fashion.

In the seventies and eighties of the last century, if you wanted to wear a structured "really good" shirt, you had to wait in a long line.

Because one is really good, there are also cases of the glass windows of the store being crowded.

In order to let everyone wear a "really good", let's make the whole work bigger, and directly launch a complete set of chemical fiber industry chain.

Don't look at the "really good" now that no one wears it, but since then, our identity and status in the home textile industry have been all the way up.

Today, in this field, we are called the second in the world, and no one dares to call the boss.

It is true that Liang was originally imported from the West by Guangzhou. So it doesn't matter where a product comes from, the important thing is to give you a chance, you have to catch it.

The most awesome thing is, of course, that if you give you a product, you can support a whole set of industrial chains. This is the same as what Archimedes said

Give me a fulcrum, and I'll pry the earth up for you.

We still have a good time, and if we introduce a Tesla factory, we will be able to engage more than 400 local first-class businessmen to play with it. This is still a first-class business, and there are various levels of ** chains on the chain, so it is strange that the industrial chain cannot be carried out.

The same thing, for someone who uses it well, may be a catfish that stirs up the industry;For those who don't know how to use it, it's the killer of foreign invasion.

Don't look at this logic in our whole place, it is quite clear, but it may not be understood elsewhere.

A while ago, Indonesia wishfully believed that TikTok e-commerce would hurt local small, medium and micro enterprises, and banned TikTok e-commerce on this ground.

It seems that this is a well-intentioned move, but unfortunately local small and medium-sized enterprises do not appreciate it so much.

Yuni, a small home appliance merchant in Indonesia, has doubled her turnover in half a year after joining TikTok Shop, and can sell IDR 4 million a day.

Converting ** to RMB, it is almost 1900 yuan. Her views on banning TikTok e-commerce are both direct and angry:

Of course I am against this ban!I don't understand how the authorities are going to enforce it, breaking into my house while I'm live?

There is also an Indonesian merchant named Dennies Soesanto, who sells goods such as bags and suitcases through the TikTok Shop. The turnover of his sales in TikTok Shop is 3 times that of other e-commerce platforms. He told the New York Times: .

The closure of TikTok Shop's Indonesian business is not about local small and medium-sized businesses at all, but other e-commerce platforms.

Banning TikTok Shop, these Indonesian merchants will not only lose these revenues, but also have to lay off a lot of people. Therefore, these Indonesian merchants are not crying out for TikTok Shop, but because TikTok Shop has really changed the trajectory of their careers and even lives. Once banned, they face the loss of their previous efforts.

Richard Lee is an influential local beauty blogger who sells skincare and beauty products to 4.7 million Indonesian followers.

In August this year, Richard Lee ordered out 40.3 billion rupiah on the best day of his business in a TikTok live broadcast, which is converted to 19 million yuan.

This figure also broke the record for direct sales in Indonesia.

Indonesian creator Regina Okt**iana uses TikTok to interact with her 3 million followers and sell stylish and functional handbags through livestreaming.

For every dollar spent on advertising, she earns 28 times as much.

The money, in turn, allowed her to create a dealer program for women entrepreneurs by opening up jobs.

Indonesian digital blogger Kohcun, who used to work in a gadget repair shop, started sharing electronics reviews in a clear and simple way in 2021.

Now he has 1.4 million followers. Through a 24-hour live stream, selling smartphones, electronic accessories and household appliances, Kohcun has brought $1.3 million in goods.

It's not just bloggers who bring goods who feel that banning TikTok Shop is a serious problem.

Even Fithra Faisal Hastiadi, an economist and former spokesperson for Indonesia's ** ministry, believes that banning TikTok e-commerce is a mistake.

He believes that the Indonesian authorities' claim that cheap Chinese goods have hit Indonesia's traditional market is a set of hypocritical rhetoric. The reasons given are:

Long before TikTok e-commerce entered Indonesia, Chinese goods had been pouring into Indonesia for more than a decade.

said that TikTok Shop hurt the local small and medium-sized enterprises, and this reason did not even agree to Indonesia's "Four Seasons Youth".

Dana Abang Market in Jakarta is the largest wholesale textile and apparel center in Southeast Asia.

The bosses of those offline stores all think:

The emergence of TikTok Shop has allowed them to reach a wider market and customers.

Nadia runs a shop in Danah Abang and has been streaming on TikTok Shop for a year, where she has seen a rapid increase in her customer base and meet buyers from all over the world. The boss told Indonesian News JPNN that TikTok Shop would allow her to earn more. She was baffled by TikTok's deactivation of e-commerce features in Indonesia.

Why can't you sell on social?It's a very different feeling......Customers can see the real products and see the benefits of these products first-hand.

There is also a shop owner, Nilam, who derives 80% of his income from TikTok Shop, and when he heard that the platform was banned, he was confused
I'm confused where I'm going to make money.

However, to the delight of these small and medium-sized enterprises, the TikTok e-commerce business is about to return to Indonesia. On December 11, TikTok officially said that the Indonesian e-commerce business will be merged with Tokopedia, an e-commerce platform under the Goto Group, and the merged Tokopedia will be controlled by TikTok.

According to the previous **, the main reason why TikTok Indonesia was blocked was that it affected the local economic development.

But now it seems that this is not true.

According to the Institute for Economic and Financial Development (INDEF), an Indonesian think tank, as many as 74% of the products sold by Indonesian e-commerce sellers are imported from China.

Indef named TikTok for tightening controls on the platform, citing the "flood of Chinese products" on the TikTok platform as a "threat" to local businesses.

This shows that the reason for the closure is the excessive sale of Chinese products, and it is not that TikTok Shop has caused substantial harm to local small and medium-sized enterprises, let alone affected the local economy.

If there is a problem, we will change it, and the adult world is not happy to "kill with a stick".

In the opinion of Edy Misero, Secretary General of the Indonesian Association of Small and Medium Enterprises:

As long as TikTok and Tokopedia continue to prioritize local products and provide local products with access to global markets, it will certainly have a positive impact on businesses, especially SMEs.

Giving preference to the sale of local products, the presence of Tokopedia can be a bulwark against balanced imports, provide fair competition, and can create the passion of the country's small industry.

This logic, others don't understand, we understand it very well. In our case, because a piece of really good and a car has engaged in an entire industrial chain, there are so many that you can't break it with your fingers. After having e-commerce, the transformation of the industrial chain is the same as taking Ye Luoli's magic wand.

E-commerce has given birth to a flexible ** chain, focusing on "small single quick reaction, flexible customization".

The overseas brand Mofei is an Internet celebrity brand that has been enchanted.

Before 2017, this brand was born in the UK for 80 years and entered China for 10 years, but we didn't make any waves until we met Xinbao.

Xinbao is engaged in flexible production, which can quickly grasp the new changes in the supply and demand chain through online data, and make iterations and adjustments.

It is said that Mofei launched a juice cup, which sold 30,000 units within 10 days of its launch.

Now some of the world's leading merchants, including Mofei Australia, no longer take goods from Mofei UK, but from Mofei China.

Now some Indonesian e-commerce sellers say that because of the immaturity of the upstream and downstream of the local manufacturing industry, most of the goods made in Indonesia are just a game of rebranding and assembly.

Their productivity is low, for example, a small domestic workshop can produce 2,000 animals a day, while a local factory in Indonesia may only produce about 300 animals a day.

On the other hand, the production of factories in Indonesia is much more expensive than in China.

For some products, our ex-factory price plus shipping customs clearance costs are much cheaper than their locally produced **.

Therefore, the impact of our goods on the Indonesian market is essentially not because of e-commerce, but because of the immaturity of its industrial chain.

On the contrary, it is a mature e-commerce company, which may bring amazing changes to the local industrial chain.

This collaboration between TikTok and Tokopedia has written these clearly in black and white, so as to prove that we really want to promote the development of Indonesia's local economy.

For example, the first event after the merger was the Beli Local initiative, which was launched on December 12 to coincide with Indonesia's National Online Shopping Day (Harbolnas), a program aimed at developing the country's digital economy by supporting local micro, small and medium-sized enterprises.

The cooperation also clarified a few figures:

Millions of new jobs will be created over the next five years;

More than 90% of the combined businesses are MSMEs.

As the Secretary General of the Indonesian Young Entrepreneurs Association (HIPMI) Anggawira said:
If TikTok Shop's return to Indonesia goes well, it will actually be positive for the digital business ecosystem and foreign investment.

Of course, on the other hand, Indonesia is the largest economy in Southeast Asia, and TikTok currently has as many as 1With 2.5 billion monthly active users, the market size is second only to the United States and the European Union. So for TikTok Shop, returning to Indonesia is obviously a win-win situation as well.

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