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
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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,
namely
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
streaming
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
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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.
and
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.
tiktok
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
22%.
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
bearded
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