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According to TikTok's official website, on April 25, the TikTok Shop cross-border e-commerce business in Southeast Asia was launched, and the specific launch countries are Thailand, Vietnam, Malaysia, and the Philippines, which are four Southeast Asian countries, counting the previous China, Indonesia and the United Kingdom, TikTok Shop business has now supported seven countries in Asia and Europe.
TikTok Shop, also known as the overseas Douyin shop, is its e-commerce business. In China, Douyin e-commerce is based on short video content extension of the service, has now formed a relatively complete ecology, participants have businesses have MCN institutions, live streaming with goods boom is grown up in this small ecology.
From this point of view, overseas e-commerce services are very typical of the Output of the Chinese Model. After all, a country's market is limited, sooner or later it will hit the ceiling, but if it enters the global market, it will bring more room for development. TikTok has a good foundation for expansion: in 2021, the global download users will reach more than 3 billion, surpassing Facebook and WhatsApp, covering more than 150 countries, and is an extremely rare content platform that can be swept up in Europe, the United States and Southeast Asia among domestic overseas products.
What is the difference between TikTok's e-commerce and traditional e-commerce? The emerging TikTok platform, which is dominated by short video content, also comes with a precise recommendation algorithm to reach the target audience, which can be said to be a dimensionality reduction blow in the era of graphic marketing model.
We know that Amazon is the originator of traditional e-commerce in the world, but the threshold for opening a store on it is relatively high, and the cost of obtaining traffic exposure is also very expensive. Some early sellers hung up their product links through TikTok's short videos, and the links jumped to amazon stores.
But after all, this is inconvenient, when you brush short videos, you have to jump to other apps, and your shopping desire may be lost a lot. Coupled with the strong demand for e-commerce, then TikTok's own e-commerce platform is much more convenient, directly displaying the shopping link on the video, and directly completing the order in the app, which forms a shopping closed loop.
Different from the previous way of simple advertising on graphic platforms, merchants also have to find ways to do a good job in the content of vertical video, spend some time watching TikTok trends, and making videos that are suitable for these popular elements. The more creative and interesting the video content, the more it can guide users to forward and share, and the higher the brand awareness.
Cross-border e-commerce began to enter a frenzy period in 2019, but last year it was in trouble, many sellers did not have new products to sell, with new products but found that the vitality of the platform is weakening, tried Amazon, Shopify, Southeast Asia Lazada are not very smart. Someone who became the first test user of TikTok Shop earlier this year found that this is different from other platforms selling things in the form of graphics and search.
For example, amazon to get traffic is very expensive, low-cost competition is serious, on TikTok can be used at a very low cost to help you do push, and how to get more traffic is one of the first factors considered by almost all merchants. This is the characteristic of all platforms, the traffic cost is not high at the beginning, the key is that the speed must be fast enough, because the TikTok platform is simply too new, which means that there are a lot of opportunities, which has not been monopolized by large players, and a large number of cross-border sellers have been ready to move.
Why does TikTok attach so much importance to the Southeast Asian market? The first is that the potential market space is large. Research firm eMarketer found that Southeast Asia has the highest growth rate of e-commerce in the world: As of March this year, southeast Asia's e-commerce market was nearly $90 billion, up 20% year-on-year.
Southeast Asia has a large population. According to publicly available data, TikTok merchants can reach 90 million potential adult users in Indonesia, nearly 40 million in Vietnam, 35 million in Thailand and 15 million in Malaysia. The current market is undoubtedly in the user traffic dividend period, which has a strong temptation for all entrepreneurs and merchants.
Every time TikTok enters a different country, it has to face different cultural backgrounds, market environments, consumption levels, and regulatory policies. Compared with the regulatory and cultural environment in the United States, the threshold for adaptation in Southeast Asia is relatively low. Like Malaysia and the Philippines, which entered this time, there are nearly 9 million Chinese in total, and cultural communication is relatively easier.
At the same time as the launch of cross-border services, TikTok itself is also evolving, gradually exploring and launching new features, such as "one store to sell globally", that is, some geographical restrictions between countries have been relaxed.
For example, a British merchant selling goods in TikTok live broadcast, you can push the video to users in Malaysia and the Philippines at the same time, these 3 countries can see the live content and buy goods, the product pages are translated into the local language, and according to the currency, tax rate and other factors to calculate the corresponding price, there is also a global logistics network to support.
TikTok's road to globalization has just begun, we look forward to its future performance will be more eye-catching, but also hope that there will be more and more Chinese models in the future, these Chinese models include but not limited to model innovation, hard technology and manufacturing, Chinese entrepreneurs not only have to focus on the Chinese market, but also use innovative models to serve global consumers.
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