TikTok Shop sets sail for another city of global expansion
What? Are you also using TikTok? This is nothing new, with more than 1 billion active users around the world swiping TikTok. But did you know that TikTok also has a "dark artifact"? It is TikTok Shop, an e-commerce platform.
In a blink of an eye, TikTok Shop has been launched in many countries and regions around the world, covering the United Kingdom, the United States, Malaysia, the Philippines, Thailand, Vietnam, Singapore, Indonesia and other places. And in 2023, TikTok Shop's global GMV will already exceed $20 billion! That's a staggering number, nearly double that of 2022.
How exactly does TikTok Shop do it? It mainly relies on two "killer features" - social attributes and algorithm recommendations. TikTok Shop deeply integrates TikTok's social genes, and users can not only shop here, but also see grass planting videos, interactive comments, etc., and the shopping experience is super immersive. TikTok's powerful algorithm can accurately recommend products of interest to meet the needs of users.
Don't look at TikTok Shop is so awesome now, its performance in Southeast Asia has stolen the limelight. In 2023, TikTok Shop's GMV in Southeast Asia will exceed US$13 billion, of which Indonesia alone will contribute more than US$4 billion, and Thailand will also have US$3.5 billion in GMV. This is all thanks to the huge user base of 135 million active users in Southeast Asia.
Expansion acceleration TikTok Shop's next stop is Mexico
Seeing TikTok Shop's crazy performance in Southeast Asia and the United States, do you also wonder where it is going to target next? Don't worry, I'll give you a big hammer: in 2024, TikTok Shop will accelerate the pace of global expansion, adding new sites in Australia, France, Italy, Germany, Spain, Canada, Japan, South Korea, Mexico and more!
The Mexico site will be TikTok Shop's latest "battleground". According to the news, since the end of April, TikTok Shop has been testing the full closed-loop small store business in Mexico on a small scale, and it may be officially opened in June at the earliest. At present, it is in the early stage of internal testing for investment promotion, and merchants are required to ship locally in Mexico.
Why does TikTok Shop value the Mexican market so much? There are two main reasons for this:
Mexico has a huge e-commerce market potential. According to statistics, the size of Mexico's e-commerce market will reach $28 billion in 2022, with more than 88 million users. And that number continues to grow. Mexico has become a new blue ocean for the e-commerce market in Latin America.
TikTok also has a large user base in Mexico. Data shows that by the end of 2022, TikTok has more than 38 million monthly active users in Mexico, and user stickiness is very high. This has laid a solid foundation for TikTok Shop to promote and operate locally.
Ambitious ByteDance's "e-commerce territory"
Seeing this, do you have more expectations for the development prospects of TikTok Shop? As an "e-commerce general" under ByteDance, TikTok Shop is undoubtedly an important chess piece of ByteDance in the global e-commerce map.
Judging from the development history of TikTok Shop, it has been growing all the way, and has gained a firm foothold in many markets around the world in just a few years. In 2023, GMV will exceed 20 billion US dollars, and in 2024, the target of 50 billion US dollars will be locked.
The key reason why TikTok Shop has achieved such impressive results is that it deeply integrates TikTok's social genes and algorithmic recommendation capabilities. This makes TikTok Shop not only meet the shopping needs of users, but also stimulate users' shopping desires, bringing a steady stream of traffic and orders to merchants.
TikTok Shop's path to growth hasn't been easy. It is facing fierce competition from e-commerce giants such as Amazon and Shopee, and how to build its own moat on a global scale will be a huge challenge.
Judging from the overall strategic layout of ByteDance, TikTok Shop is definitely a bombshell. Through TikTok, TikTok Shop and other products, ByteDance is building a "cross-border ecosystem" covering content, social networking, e-commerce and other fields, in order to occupy a greater voice in the world.