Monthly active users reach 143 million, TikTok Shop stages a 'King's Return' in Indonesia!
—— Tuke
In the Indonesian market, TikTok Shop has successfully returned through its merger with Tokopedia.
According to the "Occasional Public Disclosure" report released by GoTo in February 2024, Tokopedia has about 18 million monthly active users, while TikTok Shop has reached 125 million monthly active users. After the merger, the total number of users covered by both platforms is close to143 million.
Patrick Walujo, President of GoTo Group, once pointed out that the user bases of Tokopedia and TikTok Shop have different characteristics and consumption habits. This diversity allows the merged platform to complement each other, thereby attracting a broader consumer group.
For example, Tokopedia users tend to shop in a planned manner and prefer to use various payment methods to purchase electronics, daily consumer goods, and household items. In contrast, TikTok Shop users prefer impulsive shopping via live streaming, favor cash on delivery, and mainly focus on fashion and beauty care products.
This complementarity in user behavior helps the merged platform increase market share and user stickiness, thus occupying a stronger position in the Indonesian market.
At the beginning of the merger, TikTok Shop's decision was a reluctant strategic choice.
In October 2023, Indonesia issued a decree banning social commerce, catching TikTok Shop off guard. In order to maintain its business in the Indonesian market, TikTok Shop chose to merge with Tokopedia in December. By acquiring 75.01% of Tokopedia's shares for $840 million, it achieved a controlling stake in Tokopedia.
Currently, Tokopedia has completed its merger process with TikTok.
Judging from the results of the merger, TikTok Shop's strategy has clearly been very successful. Not only did it resolve the urgent situation at the time, but it also further strengthened its position in the Indonesian e-commerce market. TikTok Shop retained its operating rights while also gaining the opportunity to return to the Indonesian market. For Tokopedia, TikTok Shop's participation undoubtedly enhanced its competitiveness in the increasingly fierce market.
According to Tuke, before the arrival of Ramadan, TikTok Shop's sales in the fast-moving consumer goods sector reached 1.1 trillion Indonesian rupiah, with a market share of 22.4%, second only to Shopee.
Therefore, the merger of TikTok Shop and Tokopedia can be seen as a strong alliance, greatly enhancing their competitiveness in the Indonesian market.
This once again strongly proves that TikTok Shop made the right bet this time!
Conclusion
The success of TikTok Shop in Indonesia undoubtedly once again confirms its enormous potential. In the future, we look forward to TikTok Shop bringing us more good news.