Southeast Asia, a region with a total population of 630 million people — half of whom are under 30 — is one of TikTok's biggest markets in terms of users, generating more than 325 million monthly visitors to the app.
TikTok CEO Shou Zi Chew in Jakarta, Indonesia, on June 15, 2023. Photo: AP
But the platform has yet to turn its massive user base into a major source of e-commerce revenue in the region as it faces fierce competition from larger rivals SEA’s Shopee, Alibaba’s Lazada and GoTo’s Tokopedia.
“We will invest billions of dollars in Indonesia and Southeast Asia over the next few years,” TikTok CEO Shou Zi Chew said at a forum held in Jakarta to highlight the app’s economic and social impact in the region.
TikTok did not provide a detailed breakdown of its spending plans, but said it would invest in training, advertising and support for small vendors who want to join its TikTok Shop e-commerce platform.
A TikTok spokesperson told CNA on Thursday evening that the $12.2 million investment will help more than 120,000 small and medium-sized businesses transition online.
Chew said the content on its platform is becoming more diverse as it adds more users and expanding beyond advertising into e-commerce, allowing consumers to make purchases through links on the app during live streams.
TikTok has 8,000 employees in Southeast Asia and 2 million small vendors selling products on its platform in Indonesia, the region's largest economy, he added.
E-commerce transactions across the region reached nearly $100 billion last year, with Indonesia accounting for $52 billion, according to data from consultancy Momentum Works.
TikTok recorded $4.4 billion in transactions across Southeast Asia last year, up from $600 million in 2021, but it still lags behind Shopee’s $48 billion regional merchandise sales by 2022, Momentum Works said.
The app has not faced major bans on government devices in Southeast Asia, but it has come under scrutiny for its content.
Mai Van (according to CNA)
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