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Rise of Social Commerce in SE Asia: Influence of TikTok Shop Growth

In the dynamic world of ecommerce, trends can rise faster than the blink of an eye. TikTok (Douyin) Shop's growth in Southeast (SE) Asia is a testament to this phenomenon, and whether it's an advantage or a challenge for your brand hinges on your adaptability and the resources you have at your disposal. Let's delve into the rising wave of TikTok Shop and its impact on brands selling in the APAC region.

How TikTok Shop Measures Up to Competitors

Shopee stands as the dominant force in SE Asia's online marketplace realm, claiming a traffic share of 30% to 50% across the region in recent months. Not far behind is Lazada, securing the second position with a respectable 10% to 30% traffic share. As of the latest tally by market research firm Insider Intelligence, SE Asia boasts a staggering 135 million TikTok users, a testament to the platform's pervasive influence.

Indonesia emerges as a TikTok powerhouse, second only to the United States in terms of user count. The youthful Indonesian population, accounting for 52%, translates to approximately 113 million TikTok enthusiasts. The unique advantage of TikTok, in comparison to Shopee and Lazada, lies in its power to trigger impulse purchases through captivating content.

So, the rise of TikTok Shop may bring a short-term decline in sales shares on these other marketplace platforms. However, Shopee and Lazada have both spent years investing in improving logistics, enhancing their user experience, and building loyalty through their platform, all of which remain critical considerations in a customer’s buying decision.

Competition in the market in regard to new shopping platforms is great news for consumers, and with the ever-expanding demand by consumers for online goods, there is room for all three to operate effectively in this market. New entry platforms can, however, pose a challenge for brands who are not fast to adopt them or who lack the resources and expertise to represent their brand on new channels effectively.

What Brands Need to Tap Into TikTok Shop

Brands that can harness the power of social selling on a high-converting platform like TikTok stand to forge connections with consumers where they actively engage. This not only unlocks growth opportunities but also introduces a novel approach to cultivating brand demand. Brands who are finding success on the platform often partner with an ecommerce accelerator, like Pattern, to get access to the resources they need to be successful. Here are data points brands need to understand to be successful on TikTok Shop in SE Asia:

  • Market preferences
  • Consumer behavior on social platforms
  • Distinct purchasing dynamics of each market

As a premier partner for global ecommerce acceleration, Pattern empowers brands with these resources to seize a substantial slice of the booming $6 trillion global ecommerce market. By collaborating with a trusted partner like Pattern, brands:

  • Gain the advantage of regional expertise
  • Retain control over their brand's identity and intellectual property

Through a meticulously data-driven approach, Pattern assists brands in fine-tuning their brand proposition, identifying key market differentiators, optimizing SKU performance, and uncovering untapped avenues for growth.

Navigate the Rise of Social Commerce with Pattern

In the expansive tapestry of APAC's ecommerce realm lies an extraordinary opportunity, with a projected GMV of $3.36 trillion in 2023. However, seizing this potential requires more than just ambition—it mandates a deep understanding of the complex ecommerce ecosystems inherent to this region.

APAC GMV

Pattern's ecommerce acceleration solution leverages technology, industry expertise, and a comprehensive network of distribution, logistics, and fulfillment services to help brands achieve profitable ecommerce expansion. Pattern's successful brand partnerships have translated to an average year-on-year growth of 100% for brands in the APAC region, with accolades earned at the 2023 Tmall Global merchant conference.

As TikTok's influence surges and social commerce becomes an integral aspect of ecommerce, brands need a guiding force that mirrors their ambition. Pattern's expertise can provide that resource and lead brands through the complexities of the APAC ecommerce landscape. For more insights on conquering the rise of social commerce in SE Asia, reach out to Pattern.