Regarding TikTok's return to Indonesia, Tuke has actually mentioned it several times already, but why bring it up again?

Mainly because I want to use this event to clearly explain the “necessity for Chinese companies to go global,” so that readers don’t always think Tuke is just advertising for TikTok.

In fact, friends who run businesses should have noticed that after years of development, all kinds of internet sales tricks have already been played. Even with more and more events and creative ways to promote products, domestic demand has reached a saturation point, making it hard to see a huge surge in purchasing power.

This has led domestic companies, whether B2B or B2C, to seek new growth by going overseas.

But now, many products circulating around the world are “Made in China.” Isn’t that going global?

Of course not.

You have to understand, the meaning of product export and brand globalization is different. In the past, we exported processed products to overseas brands, letting them label, price, and sell them. It seemed like we made a big order, but in reality, we were just the world’s factory, a supplier of cheap products. Domestic manufacturers fought fiercely for orders by slashing prices, and in the end, no one made money, barely managing to survive.

That’s why companies are advised to go global and participate in sales themselves, so they can gain more economic returns. Otherwise, they’ll just be stuck in the domestic market, endlessly competing.

However, going global comes with many challenges, such as local protectionism and discrimination against foreign businesses. But there’s no way around it—after all, no path in this world is “smooth sailing.”

On the road to going global, TikTok has actually set a great example for us, which is what Tuke mentioned at the beginning—TikTok’s return to Indonesia.

As a Chinese company, ByteDance faced many difficulties in bringing TikTok to the world, because this is essentially brand globalization, and it takes time and trust for “locals” to accept an “outsider.” Fortunately, the overall problems weren’t too serious, and TikTok has basically encountered all the issues that come with going global over the years.

Its successful globalization has also paved a smoother path for other domestic companies to go overseas.

At the beginning of 2021, TikTok Shop launched in Indonesia, and its transaction volume in Southeast Asia reached $600 million that year.

By 2022, this figure had increased more than sevenfold.

According to industry insiders, TikTok Shop’s transaction volume is expected to reach $15 billion in 2023, and the platform has already attracted over 6 million local merchants, solving tens of millions of related employment issues in Indonesia.

Although the Indonesian government, worried that online business would affect the interests of local small and medium-sized merchants and fearing that Chinese products were too cheap and amounted to dumping, banned TikTok’s product transactions.

But it’s obvious to everyone that the Indonesian government’s reasoning doesn’t hold water.

Because Indonesia also has local e-commerce platforms like Tokopedia, Shopee, and Lazada. It’s just that only TikTok combines social media and e-commerce.

So the reason of online affecting offline and thus shutting down TikTok Shop is simply to cover up the fact that Chinese products are too cheap and affect the interests of local Indonesian merchants.

However, after two months, the situation took a turn for the better. After all, TikTok has huge influence among the public, with over a million merchants on the platform, so shutting it down completely was unreasonable.

So the government came up with a compromise, allowing TikTok to merge with Indonesia’s largest local e-commerce platform, Tokopedia, achieving TikTok’s “localization,” while TikTok’s parent company also gained controlling equity in the merged company.

TikTok also promised to invest $1.5 billion in the next few years to create millions of new jobs in Indonesia and support over 90% of merchants, mainly micro, small, and medium-sized enterprises (MSMEs).

Moreover, to better support local merchants, TikTok plans to promote Indonesian local products on the platform and provide resources related to upstream production and sales. They also plan to promote local brands in international markets, helping merchants sell products online through support in marketing, branding, and sustainable business practices. In addition, TikTok plans to set up a technology center in Indonesia to cultivate local tech talent.

TikTok’s series of actions have brought great benefits to Indonesia, and of course, in the long run, this move is definitely a win-win for both sides.

With this, TikTok’s issue in Indonesia has basically come to an end. However, for Chinese companies wanting to go global and develop overseas, TikTok’s experience has exposed a major challenge and provided valuable lessons for subsequent companies, making them pay more attention to localization.

Just like when Huawei entered overseas markets in the early years, didn’t it also comply with local laws and regulations, hire local employees, and provide a large number of jobs to gradually gain trust? Although it still faces some official restrictions in the US, that’s because our strength has made them feel threatened.

In short, the road for Chinese companies to go global is long and arduous.

Staying and developing domestically is certainly stable, but for some industries, the domestic market can’t sustain the increasingly competitive production capacity. To continue developing, they must seek new paths.

Moreover, as Tuke mentioned earlier, TikTok’s successful globalization has already paved a smoother path for domestic companies to go overseas.

At least in terms of promotion, whether B2B or B2C companies, there is now a better platform. As for how to build factories locally, set up overseas warehouses, and save on shipping costs, that’s up to the companies themselves.

Just like an LED lighting factory Tuke knows—Mufan Optoelectronics—went global through TikTok, making its business flourish, with orders covering Dubai, Paris, and the UAE, and building up its brand reputation.

So, going global isn’t actually that difficult—the key is persistence. If anyone wants to exchange experiences, feel free to contact Tuke for a chat.