TikTok is on the rise again!

TikTok is on the rise again!

On April 25 this year, TikTok Shop officially announced that it will launch cross-border business in 4 Southeast Asian countries (Thailand, Vietnam, Malaysia, and the Philippines). On April 30, the 4 major sites provided merchants with functions such as live broadcast, short video trailer delivery, transaction performance, and reverse refunds.

Prior to this, TikTok Shop’s cross-border business also opened the UK market, and this time it opened cross-border e-commerce stores in four Southeast Asian countries.

Therefore, merchants set off a wave of applying for small stores!

Entering the Southeast Asian market is relatively more friendly to small and medium-sized sellers. In the early stage of the Southeast Asian market, a directional invitation system was adopted, that is, merchants need an invitation code to complete the establishment of small stores. All Southeast Asian countries only need 1 invitation code.

There are two ways to get the invitation code. The first: Sellers who meet the requirements for operating a small store in the UK can directly open a small store in Southeast Asia. The second type: For sellers who have not settled in British stores or do not meet the operational requirements, they can settle in as long as the GMV of other e-commerce platforms in Southeast Asia reaches more than 5,000 US dollars in 30 days.

In 2021, most of the population in Southeast Asia has basically begun to use the Internet. Six countries including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam added 40 million Internet users, bringing the total number of Internet users to 440 million, accounting for about 75% of the total population of the six countries.

 According to the "e-Conomy SEA2019" report, the catalysis of the epidemic has made Southeast Asia, with a population of 6.7 billion, a new blue ocean for cross-border e-commerce. The rapid development of TikTok Shop in Southeast Asia is inseparable from the popularity of TikTok.

In the Southeast Asian market, Indonesia has about 75 million monthly active users, ranking first in Southeast Asia. With about 11.6 million monthly active users, Malaysia ranks second in Southeast Asia.

The Southeast Asian market has huge development potential and is generally in the blue ocean market.

However, the Southeast Asian market has a drawback: compared with the European and American markets, the local infrastructure is still in a relatively backward state. There is a huge disparity in the level of infrastructure development between urban and rural areas, as well as serious problems with water supply and transport and communications, which are prominent throughout Asia.

The above problems make it difficult for TikTok shop to open up the sinking market in Southeast Asia.

And in terms of the current e-commerce environment, Shopee, Lazada, and Tokopedia have already formed a "three-legged" pattern in Southeast Asia, and Shopee will deserve to be a star platform in Southeast Asia in 2021.

In such a market, TikTok came strongly to take a share. To a certain extent, it is very likely to change the original pattern.

Compared with the traditional e-commerce sales model, TikTokShop's e-commerce model is a small closed-loop store. Through short video drainage + traditional e-commerce sales model, combined with platform algorithm recommendations, it can accurately and quickly sell products in the form of short videos and live broadcasts. The details reach the user, and the user directly completes the entire process of payment, receipt, and return on TikTok.

Southeast Asia has a young population structure and is heavily reliant on social networks. Some industry insiders believe that young netizens in Southeast Asia, aged 20-30, will become the main consumer group in a few years. .

Currently, Indonesia is TikTok’s largest market in Southeast Asia, followed by Vietnam, the Philippines, Thailand, Cambodia, Malaysia and Singapore.

Among TikTok's 1 billion monthly active users, about 120 million monthly active users are contributed by the people of Southeast Asia.

Timing means business opportunities, and the newly added four major sites in Southeast Asia will attract more Chinese cross-border sellers. No one can deny that TikTok Shop is a huge cross-border e-commerce outlet.

In the face of overseas audiences who have not yet formed the habit of live shopping, the earlier the layout, the more opportunities!

At present, TikTok e-commerce is a worthwhile thing to do in the short term or in the medium and long term. With the popularity of the Southeast Asian market, TikTok is no longer limited to a social short video platform, but more of a future. Unlimited e-commerce platform. If you don’t keep up with it now, you can only look up in the future!