TikTok Has the Potential to Displace 20% of GMV Shopee
The e-commerce industry has undergone significant changes in recent years, with the growth of new platforms capable of taking a large market share. One that has taken a prominent role in this is TikTok, a social media platform that has evolved into much more than just a place to share short videos. Recent predictions regarding TikTok’s Gross Merchandise Value (GMV) this year have come under scrutiny, with estimates that TikTok transactions could reach 20% of GMV Shopee.
According to a report from Blue Lotus Research Institute, an analyst named Shawn Yang stated that it is estimated that TikTok’s gross transactions or GMV will reach 20% of GMV Shopee within this year. This shows a significant growth in TikTok’s dominance in the e-commerce space, illustrating how strong the platform’s appeal is to online shoppers.
Potential for TikTok Shop to Shift GMV Shopee
Not only that, a report from Momentum Works provides a deeper look into the potential of TikTok Shop. Reported by Kata Data, Momentum Works revealed that TikTok Shop has a target to reach US$20 billion in gross transactions this year. Of this amount, around US$ 15 billion or around Rp 230 trillion will be directed to the Southeast Asian market.
However, the impact of TikTok Shop is not only felt in Southeast Asia. Momentum Works explicitly calls TikTok Shop a global threat to e-commerce players, including giants like Shopee, Lazada, and even Amazon. The platform has taken on a significant role in changing the way people shop online, with engaging short video content being an effective promotional tool.
The forecast of TikTok Shop transactions per year outlined by the Momentum Works report also gives an idea of the incredible growth rate:
2021: US$ 600 million
2022: US$ 4.4 billion
2023: US$ 20 billion
With forecasts showing rapid and constant growth, TikTok Shop has the potential to become a serious competitor to established e-commerce players such as Lazada and Tokopedia. Momentum Works confirms that this will position TikTok Shop in the same league as major players in the industry.
In an era where social media is increasingly playing an important role in consumer influence and purchases, changes and developments like this should not be ignored. The threat that TikTok Shop poses to e-commerce players underscores how important it is to adapt to new trends and innovations in order to maintain competitiveness. In the next few years, we may see a further evolution in the way we shop online, which will be driven by platforms like TikTok Shop.