TikTok Shop is aggressively expanding in Southeast Asia, posing a growing threat to Sea Group’s Shopee and Alibaba’s Lazada. “Impulse buying from watching content is an advantage TikTok has,” Sachin Mittal, head of telecom and internet sector research at DBS Bank, told CNBC. TikTok Shop is also “spending an incredible amount of money” incentivizing sellers and buyers to use the platform, said Jonathan Woo, Phillip Securities Research senior analyst. A merchant sells crystal ornaments via a live TikTok broadcast. CFOTO | Future Publishing | Getty Images
TikTok Shop is a rising threat to major e-commerce players such as Shopee and Lazada in Southeast Asia.
It comes as its parent ByteDance pushes the short video app in markets outside the U.S. and India to create alternative revenue streams.
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TikTok Shop is the e-commerce marketplace of short video app TikTok, which is owned by Chinese tech giant ByteDance. The shopping app enables merchants, brands and creators to showcase and sell their goods to users.
In 2022, TikTok Shop expanded to six Southeast Asian countries — Singapore, Malaysia, Indonesia, the Philippines, Vietnam and Thailand.
“TikTok continues to grow rapidly in Southeast Asian countries. We estimate that TikTok’s 2023 [gross merchandise value] will reach 20%~ of Shopee, which we suggest prompted
