HowTiktok defeat eCommerce

the in-commerce business is getting busier, the

competition is getting more and more exciting because

Tik Tok is getting into the e-commerce business,

they launched the tiktok shop feature,

people are enthusiastic about it and

the market also accepts that, as evidenced by the

value of the transaction, which is growing

rapidly. Just imagine, in just

a year, the value of shopping  e-commerce via

Tiktok has increased 4-fold

in 2022 and based on the records

in the data, so Tiktok is no longer

just social media, Tiktok has

turned into live commerce, but by

the way, what is live commerce

and how is it different from e-commerce

and  social commerce then what is

TikTok's strategy to be able to beat

other e-commerce companies that already exist at

this time, let's find out



Until 2021 Indonesian e-commerce is

dominated by 3 main players, namely

Tokopedia, Shopee and Lazada of

the three.  the results of the ipsos Indonesia survey

stated that the dominant one

was shopee e  the top commerce of

Mind and the most widely used,

so it's only natural that the number and value of

transactions is the largest,

followed by Tokopedia and also Lazada,

below that, Bblibli Orange, GDI,

and so on, there are still

other players, like Matahari, a

conventional retail player who is also

trying  the fortune of the e-commerce business in

Indonesia is indeed tempting, it's no wonder

that many players are trying

their luck so that the competition

is fierce. They are fighting over the market,

where the transaction value is very, very large,


108.54 Trillion Rupiah, the amount was achieved

in just one quarter at the beginning of

2022 or growing  23% compared to the

same period in the previous year. In

addition, consumers also continued to

grow. The coordinating ministry for the

economy noted that there were 21 million

additional new consumers from March 2020

to semester 1 2021. Apart from overcoming

competition, e-commerce managers in

Indonesia also faced a number of

challenges include the flow of funds from

finger Capital which has started to drag

Investors are cautious about launching

funds to Indonesia's e-commerce status

amid deteriorating economic conditions as a

result of which several e-commerce companies have laid

off employees including tanihab, clear ID bananas

go to or Tokopedia and also circle

shopee  Indonesia also joined JD ID

and even went out of business.

Another challenge is the unsustainable business model

experienced by a number of

e-commerce companies. A reliable strategy to burn

more money to

attract more users, a

number of e-commerce companies, are finally forced to

set application subscription fees

to get  additional funds, so

before we talk anywhere, let's

match the perception first. What's the difference

between e-commerce, social commerce and

live commerce?

so tempted

them then m  enriched its features by

adding a marketplace on

its platform including Meta which

launched Facebook shock in May 2020

Twitter launched a Twitter shop which

allows sellers to offer 50

products on their profile as well as

Instagram which also added

its marketplace feature while Pinterest

helps its users to

add what shopping lists they want.

social media has been carried out,

as I mentioned earlier, that is what is

meant by social commerce,

so social commerce is social media

whose function has been enriched with

additional features, the social

commerce marketplace is growing rapidly because

social media users often

buy and sell goods through their

respective accounts.  -Everyone, especially

social media users, is the dominant

millennial generation, right? Those who will make half

of the world's population by 2030, it's

increasingly reported that Genzi

gets 75% of their influence from

social media, online content and  also

their celebrities whose

learning power will continue to increase as

they age, now

entering 2019 a new trend appears in

the world of e-commerce, namely live commerce

or also known as live shopping.

The pioneer is Lazada, they call

their innovation property, because

consumers can not only shop for

them  You can also enjoy various

game vouchers and live


Shopee. Don't want to be left behind. In October

2019, they launched a live

shopping feature. Sellers can promote

their products live. This allows

buyers to see clearly

what type of goods they

want. Similar functions are also offered by

their Tokopedia.  launched the live

streaming feature Tokopedia play, now when

e-commerce competition has started to be fierce,

tiktok joins in, they launch a

tiktok shop that allows users

to sell through Life shopping,

live shopping is a trend that is

growing very fast  The global method of

shopping transactions through Life commerce

during the pandemic in particular has increased by

76% as well as in Southeast Asia. The results of the

2021 Ifsorsi study in 6

ASEAN countries revealed that

69% of Southeast Asian consumers have started

accessing live stream shopping and 66%

of them are buying products via

live streaming.

revealed that 78% of consumers in Indonesia

know about live streaming shopping and

71% of them have accessed it and

56% have even shopped through live

streaming, actually the phenomenon of live

shopping is not a new thing,

according to Nailul Huda, an observer of the

digital economy, Institute for Development Of

Economics in Finance, according to Instagram

and  Facebook already uses

subscribers as a market, especially

marketing with live broadcasts that are also

commonly found in offline markets. I've

said that it's just moving

sales activities at markets in malls

from offline to online, I already believe that

live shopping will be increasingly in demand.

Because there is direct interaction

between sellers and buyers, that's what

attracts e-commerce observers.

Ignatius fortunately stated that live

stream selling like on TikTok allows

merchants to communicate directly

with buyers.

One aspect that is assessed from traders in the

market place ceiling is

the speed of responding to customer questions and

requests as

Dignatius said, those who are

responsive are given stars while those who

respond less have a low value.

The effectiveness of live shopping can be seen

from the performance of the Tofu Bau live

stream website in November 2020.

mentioned that the live shopping session of the

top account suddenly owned by Alibaba

lasts up to 6 hours on average

with about 70 different products

displayed every 5 minutes

one product is shown and that can attract

the attention of 2 26,000 viewers,

it's amazing, yeah, that's great again, tam  the pillan

resulted in 75,000 orders with a

conversion rate of 28% indeed live

shopping is a very good way

to generate sales of various

types of goods the conclusion of the makingsi report

popular products sold

include fashion beauty

electronics home decoration and

home repair consumers are attracted because they can

provide human gratification and can

interacting directly with the seller,

this process helps to increase the

segmentation of consumers and encourages

more sales live shopping is also a

good way to

promote new products because it can

make potential buyers understand more

about the product they are interested in


there are several reasons that make us

understand  Why is tiktok entering the

e-commerce business first? The potential for

e-commerce market value is predicted to be even greater.


it's the highest in the world,

several factors do support

this rapid growth, including

consumer behavior that is increasingly mobile

friendly, millennial consumers and Genzi,

which also continues to grow and strong

support from the government.


worldwide has reached 1.46 billion

based on business reports. So if

compared to the previous 5 years, the number of

monthly active users for applications made in

China has jumped by more than

1000%, but China is not the

largest number of tiktok users, the first country with

the most tiktok users is the United States,

which has

136.4 million ask Indonesia is in

second place until April 2022

the number has reached 99 million

Indonesia is also ranked 7th

in terms of average use of time on

tiktok, namely 23.1 hours per month. The

biggest users of tiktok are

young people, who in Indonesia are  The

dominant group in

consumer demographics is actually

the same globally as the business of apps reports

that until 2021 TikTok users

around the world are dominated by the

20 to 29 year old age group, the proportion reaches

35% in second place in the 10

to 19 year age group with a 28% proportion of

reasons that  the third is the results of a survey

conducted by tiktok in 2020 regarding the

shopping behavior of its users, it turns out that the

survey results were very interesting, two-

thirds of users who participated in

the survey revealed that the

tiktok environment motivated them to

shop, departing from the fact that

tiktok then transformed them

not only into social commerce but

also live  commerce the

shopping motivation that arises among

users could be because with the tiktok

shop they get

product recommendations directly from the Creators not

from the producers, most users really

trust the recommendations of the Creators,

it can be seen from the results of the r  isetmeters

communication found that 61% of

people surveyed tend to

trust recommendations from friends,

family members or influencers on

social platforms, while only 38% of users

tend to trust recommendations from

producers, the attitude of users

who trust creators more is

understandable, yes, because creators often

display  the product as it is,

tiktok videos can quickly give a

real picture of how a

product works, users can see

real product trials, moreover,

creators also provide curation of the

products they are promoting, so

they help consumers choose

quality products amidst so many

product advertisements on  social media is interesting

again, product reviews are supported by

popular music on tiktok or dise in Meme

or formats that are already popular,

these are some of the reasons that strengthen

tiktok's move to become an e-commerce

that is in demand by consumers, so since

2021 the parent company tiktok b  ite dance is

aggressively developing its e-commerce business,

especially in Southeast Asia, which has a

faster growth in e-commerce transactions

than other regions. In

2022, the sales value in

Southeast Asia can reach 90 billion.  the

most popular application in

Southeast Asia and most

social media users in this region are

already addicted to tiktok to

support their business initiatives they

also created tiktokshop seller

University it is an educational website

about online selling the existence of

educational UF is the first step for

users in Indonesia to test  Try the

online shopping feature in the application. The

next step since October last year is by

dance collaborating with Shopee, an

e-commerce company from Canada, millions of

sellers on Shopee can promote

their wares on the

TikTok platform, the Women's retail trade network,

they also partner with them to  improve

Walmart's advertising strategy utilizing

online shopping features on tiktok to

target young consumers.

while through live

streaming, TikTok users can sell

and usually the items being promoted

are at the bottom right. The dance

illustrates the rapid growth of TikTok

shops in Southeast Asia, including Indonesia.

fold throughout 2022 the value of

purchased goods or GMV gross merchandise

in Southeast Asia was recorded to exceed 4.4

billion or more than 68 trillion Rupiah,

according to the report,

while the previous popular survey

stated that the tiktok shop has been

used by 45% of the public.  Indonesian people

who have shopped online

using social media, the achievement is

higher than the ceiling owned by the

extended Meita family, such as WhatsApp

21% Facebook shop 10% and Instagram shop

10%.  So in Indonesia, TikTok has been

able to beat its social commerce

predecessor, namely Facebook, Instagram, the

positive response of consumers to the

presence of Tiktokshop, which can make

e-commerce that already exists as a target,

as a newcomer, Tiktok

must be taken into account by competitors.

However, Tiktok still has to work

hard to really be able to.  defeating

its competitors. So that's

their challenge in the future. Currently, Shopee

is still the market leader in the live

shopping trend. The company's survey results

say that Shopee is still the

most popular live shopping media in

Southeast Asia, with 27% of its value, while

TikTok is in third place with


their poll survey or jakpat revealed that

live shopping at shopee is most in demand by

Indonesian consumers, namely reaching 83.4%,

tiktok ranks second with

42.2%, then Instagram 34.1%, Tokopedia

30.4% and Facebook 25.9%, the

next challenge is the tiktok strategy

shop  running live shopping does not

always run effectively in all countries

in the UK, for example, the live

shopping strategy has not attracted many

users and has not resulted in

transactions, even some content creators

involved in the tiktokshop initial project

decided to collaborate again,

tiktok plans to launch live

shopping in Germany, France, Italy and

also Spain  However, after seeing the

ineffective performance in the UK,

the plan was postponed, so an

effective strategy in Southeast Asia

has not been able to produce

similar success on other continents.

In terms of price,

TikTok is also less competitive, every

transaction at the Tiktok shop is subject to an

administration fee of IDR 2.  000 while the

administrative costs of its competitors are only Rp. 1,000.

Maybe in the future, TikTok will have to cut

admin costs so that it can be more competitive,

regardless of the pluses and minuses of

TikTok's presence in the e-commerce shoe business, be

wary of other e-commerce companies.

chapter as Life commerce, Tik

Tok users are growing,

so e-commerce competition in the future will

depend on how Tik Tok can

exploit its advantages as a

live commerce, indeed, tiktok has not been able to

reverse the dominance of Lazada or

even Tokopedia, but that

could happen if Tik Tok is able to

exploit  so that the traffic of

algorithm users and their features

will make TikTok even more

competitive and when the market niche

gets bigger, the competitors will be even more



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