Market share 13.2%! TikTok stores are going crazy in this market

TikTok Shop is expected to capture 13.2% of Southeast Asia’s e-commerce market this year, according to a yet-to-be-published study by venture capital firm Momentum Works.

TikTok's e-commerce division is on track to hit a gross merchandise value (GMV) target of $15 billion by 2023 , a huge jump from $4.4 billion the year before , according to research from Momentum Works .

Once this goal is achieved, TikTok Shop ’s market share in Southeast Asia will be comparable to that of Tokopedia (estimated at 13.9%) and Lazada (estimated at 17.7% this year) .

Data shows that the best-selling category on TikTok Shop is beauty and personal care, accounting for 84% of its product sales and 70% of GMV. According to the report, brands or sellers of beauty products are bundling other types of products to increase their average customer spending .

Weihan Chen, head of insights at Momentum Works , believes that whether TikTok Shop will pose a threat to existing e-commerce platforms may be a complicated question.

“ From a broader perspective , in the e-commerce industry , leading companies seem to have network effects and structural advantages, but they are still likely to be overtaken by latecomers , so the current top platforms in Southeast Asia should always remain focused and vigilant, ” Chen said in a statement.

Momentum Works estimates that Shopee will continue to maintain a market share of around 46.5 % in Southeast Asia this year, and the company has expressed its intention to focus on its online shopping function , a move that may mean that the Singapore-based e-commerce giant will face more intense competition with TikTok in the future .

During Sea Group’s latest earnings call, CEO Forrest Li said Shopee’s transaction volume during Indonesia’s 7.7 livestreaming event increased 12 times compared to normal times.

It can be seen that the investment of major giants in the field of e-commerce in Southeast Asia is still increasing. For cross-border sellers, now is still a good time to layout the Southeast Asian market.

TikTok

Southeast Asia

E-commerce