"TikTok Shop continues to extend its legend in Southeast Asia."
TikTok Shop's development in the Southeast Asian market remains as rapid as ever.
According to foreign media Nikkei Asia, even though a series of problems have emerged in other parts of the world, the number of merchants and average sales on TikTok in Vietnam doubled last year (2023).
A representative from TikTok Vietnam revealed that the surge in sales was partly attributed to hot-selling items such as VinFast motorcycles and Samsung phones, which also reflects the growing confidence of Vietnamese consumers in online shopping.
Image source: Techin Asia
In fact, it is not surprising that TikTok Shop has achieved such impressive results in Vietnam.
According to a research report by TikTok for Business, Vietnam's economic growth continues to lead Asia, with the economy steadily growing. It is estimated that by 2025, Vietnam's internet economy will reach $57 billion, second only to Indonesia. Manufacturing and tourism have both driven Vietnam's economic growth, giving Vietnamese consumers stronger purchasing power. At the same time, digitalization is deeply influencing Vietnamese consumers' purchasing decisions, especially in e-commerce.
Obviously, for TikTok, Vietnam's greater demand for online shopping means it has become the main source of revenue for its Southeast Asian business. However, the company representative did not disclose official figures.
Image source: TikTok for Business
Nikkei Asia has also reported on related content, pointing out that in terms of market share, TikTok is the second largest e-commerce site in Vietnam, ahead of Lazada. Nikkei Asia attributes TikTok's success to its decision to set up a physical office in Vietnam five years ago, while noting that competitors such as Facebook and YouTube have yet to establish physical offices in Vietnam.
TikTok Shop has indeed invested a lot of effort in Vietnam. In addition to setting up a physical office in Vietnam, it has also launched the TikTok Shop Mall brand marketplace to attract sellers to join.
According to Tuke, in the first week after TikTok Shop Mall brand marketplace launched in Vietnam, product sales across categories exploded, with many products seeing sales surge more than tenfold, and some stores selling as many as 70,000 items.
Besides Vietnam, TikTok Shop's development in other Southeast Asian regions has also attracted much attention.
Take Thailand as an example, another Southeast Asian country that has launched TikTok Shop Mall. Since its launch, it has achieved remarkable results. As of March 28, 2024, more than 400 brand sellers have joined TikTok Shop Mall, with over 1,000 products and more than 100,000 orders, single-handedly carrying TikTok Shop's "revenue banner" in Thailand.
Image source: bangkokpost
The rapid growth of TikTok Shop in Vietnam and across Southeast Asia highlights its huge potential and market appeal in the region. It also proves TikTok Shop's competitive advantage in the e-commerce sector. With the deepening of global digitalization and further development of the e-commerce industry, it is believed that TikTok Shop will achieve even more remarkable results in Southeast Asia in the future. Let's wait and see!