SEA is known for many things. Amazing food, vibrant and lively cultures, and…tons of spooky ghost stories? 

But we’re getting put back on the map—this time because of TikTok!

• Why? The ‘clock app’ is pouring in billions to SEA over the next few years. 
• And Indonesia alone will be receiving $10B!

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🔢 First, the numbers

If you want to be impressed, just check out TikTok’s SEA user base. They reel in 325M visitors to the app every month!

• Are we surprised? Considering that the region has a population of 630M (with half of them under 30), we’re not really that shocked. 
• And their regional office? It has 8K employees in SEA.

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About TikTok Shop

In 2021, TikTok debuted their digital retail feature TikTok Shop in ASEAN, which 7x’ed their general merchandise value (GMV).

• The feature allows brands and influencers to link products to their videos. Plus, they also allow live selling products that can be purchased within the app.  
• In Indonesia alone, there are 2M merchants selling on the platform!

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💵 What’s with the $$$

CEO Shou Zi Chew says that he’ll use the money to invest in training, advertising, and supporting

• But if TikTok is going beyond as a social platform, they still have a long way to go. 
• SEA is home to e-commerce giants like Alibaba’s Lazada, Sea’s Shopee, and GoTo’s Tokopedia!

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🗺️ And for context 

Shopee’s gross merchandise value (GMV) was at around $48B in regional sales, while TikTok only had $4.4B worth of transactions in 2022. 

• Maybe the gap isn’t that big though. Because TikTok also showed the fastest growth rate ($600M in 2021 to $4.4B in 2022) among all the other e-commerce giants. 
• And, TikTok is poised to hit $15B in GMV this year. 

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😍 Is the attraction going to last? 

While there’s certainly room for growth, it’s also not going to be easy to woo the region. TikTok’s content has been tagged as ‘toxic’ by Vietnam authorities. 

And more recently. TikTok Shop’s Project S—which would enable the platform to sell its own products—was blocked by Indonesian authorities to protect local sellers.