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TikTok, the globally popular app, has announced a multi-billion dollar boost to its investment in Southeast Asia, targeting growth in e-commerce and solidifying its stance amid global data security concerns. The strategic move seeks to promote the TikTok Shop, the platform's e-commerce branch, via advertising, vendor training, and support.
Shou Zi Chew, TikTok's CEO, confirmed in Jakarta that the company, which has over 8,000 employees in Southeast Asia, would funnel billions of dollars into advertising, training, and supporting small business vendors to join its e-commerce platform, TikTok Shop. W
One of TikTok's greatest user markets, Southeast Asia, with a population of 630 million people, half of whom are under 30, attracts more than 325 million monthly users. The app has generated $4.4 billion in transactions across the region and shows no signs of slowing down.
However, despite its massive user base, the platform has yet to establish itself as a major e-commerce revenue source in the region. TikTok aims to boost its e-commerce platform, "TikTok Shop," by investing in advertising, training, and supporting small vendors.
Chew said TikTok's content is growing more diverse and expanding beyond advertising as the company seeks to include e-commerce. Southeast Asia presents a vast economic opportunity, and TikTok's investment signals its determination to stay ahead of its larger rivals, Sea's Shopee, Alibaba's Lazada, and GoTo's Tokopedia.
Despite concerns over data security, TikTok, owned by China's ByteDance, remains committed to Southeast Asia and is confident that it can leverage its popularity and global impact to produce a successful e-commerce platform.
The inclusion of e-commerce will allow consumers to purchase goods through links on the app during live-streaming events. TikTok facilitated $4.4 billion of transactions across Southeast Asia last year, up from $600 million in 2021. Despite the increase, TikTok still trails behind larger rivals, such as Sea's Shopee, which has $48 billion in regional merchandise sales in 2022.
Photo: Solen Feyissa/Unsplash
