TikTok Shop, the e-commerce arm of social networking giant, has entered Thailand, Vietnam, and Malaysia, as reported by Pandaily from an Ebrun article. The company is also hiring locally in the three countries to support their operations.
TikTok Shop allows locally based consumers to buy products while offering businesses more opportunities to increase sales via the in-app shopping feature.
Southeast Asia’s e-commerce market is predominantly occupied by Shopee and Lazada, followed by China’s two Tencent and Alibaba. Lazada focuses on highlighting brands, while Shopee started its business from small-town and rural markets, which is suitable for small and medium-sized sellers.
TikTok’s advantage lies in traffic as it has 240 million monthly active users in Southeast Asia and over 1 billion users worldwide. TikTok has performed A/B testing in Indonesia in February where locally registered companies are allowed to operate shops on Tiktok and can only serve Indonesian users.