The report showed that TikTok Shop has demonstrated impressive growth in Southeast Asia since 2021: growing from $0.6 billion GMV in 2021 to $4.4 billion in 2022 and is on track to hit the $ 15 billion target in 2023.
Following its aggressive push in Indonesia, TikTok Shop expanded into five more countries in Southeast Asia last year: Thailand, Vietnam, Malaysia, the Philippines, and Singapore.
It is currently present in nine markets, including all major markets in Southeast Asia, the UK, Saudi Arabia, and the US.
Beauty and personal care are the best-selling categories on TikTok Shop, accounting for 84% of the units sold and 70% of the GMV.
Globally, TikTok Shop is becoming a threat to incumbent e-commerce marketplaces, including Shopee & Lazada in Southeast Asia as well as Amazon in the US and the Middle East.
Earlier, 《E-commerce in Southeast Asia 2023》 showed that Southeast Asia's e-commerce GMV hit $99.5 billion in 2022, and around half of that is attributable to Shopee.
The report showed that while there were strong headwinds supporting the e-commerce sector in 2022, growth and competition continued. Shopee still dominates the market, while TikTok Shop is fast catching up with other e-commerce players.
In the next five years, the venture outfit projects that Southeast Asian e-commerce's total GMV will reach $175 billion under normal circumstances, or $232 billion under the best-case scenario.