What’s next after the ban on TikTok Shop in Indonesia? Enter InCom
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INDONESIA – 25 October 2023 – After weeks of speculation, on 25 Sep 2023 the Indonesian Government finally made sweeping changes to its Ministry of Trade Regulation No 50 of 2020
In summary, the ban mandates that social media platforms separate their social media content from their e-commerce and live shopping businesses. This is an unprecedented move that predominantly impacts TikTok and its ambition of expanding its e-commerce business in a nation of over 278 million people, once envisioned as a template for global expansion. It is also a massive blow potentially to nearly 7 million creators on TikTok Shop and their revenue earning ability.
The stakes are extremely high. Indonesia is TikTok’s second largest market globally, after the US. It is also here that TikTok has quickly captured significant market share against competitors like Sea Ltd. (Shopee) and GoTo Group (Tokopedia).
The ban itself has ignited a fierce debate among consumers, industry experts, creators and of course the Government surrounding the role of digital commerce in the country. It raises significant questions about the intersection of technology, regulation, and the modern economy. The changes must be seen in the context of Indonesia’s broader efforts to regulate the digital space.
These changes will also pave the way for new solutions to come up to fill the gap like the recently launched influencer commerce marketplace, InCom.
Quoting Teten Madsuki, Minister of Cooperatives and Small and Medium Enterprises – “We should not be late to regulate the digital economy. If we are, our SMEs will disappear, local e-commerce firms will disappear, and the consumers will bear the losses.”
Thus it is clear that the primary concern among the authorities is the impact on the MSME businesses, which claim to have taken a massive hit in their turnover, following the rise in popularity of TikTok Shop. Sources close to the matter say this is because a large majority of the goods sold online on social media platforms by creators are far cheaper in comparison, as they are manufactured outside the country.
So, what does the future hold? It is a given that TikTok will put forth its case to retain its business. But in the meantime, till a resolution is reached, what happens to the 7 million creators on TikTok Shop? Where will they turn to? What options do they have?
Clearly, the solution according to Teten is to allow the seller and shopper more real choices. Teten wrote on his Instagram account 27 Sep 2023, “It’s not difficult: just click the link, checkout, done. The sale can be directed to WhatsApp, online stores, landing pages or wherever the seller wants. The choices become more and more.”
This is exactly where InCom will be a complete game changer. InCom is SEA’s first and only true omnichannel marketplace that connects brands that wish to sell their products to their consumers through influencer recommendations. InCom’s proprietary attribution algorithm ensures that creators are fairly compensated for every single purchase made by their followers based on their recommendations. InCom is also a very attractive proposition for brands. Their pay-as-you-sell model represents ZERO cost-risk for brands. There are no upfront charges for getting products listed on InCom. This way brands can control their Customer Acquisition Cost (CAC) and align their CAC with CTLC (Customer Lifetime Value).
Influencers are empowered to earn commissions based on successful product sales and not based on any agency alignments. This levels the playing field and creates equal opportunity for all influencers to monetize their social media assets.
Launched by BeTagged Pte Ltd, a Singapore based entity which has been a significant player in the Influencer Marketing business in the last 4 years in Indonesia, Philippines, Singapore and Thailand.
About BeTagged:
BeTagged is a leading-edge Influencer Marketing & Commerce solution, uniting Human and Artificial Intelligence to enhance ROI for brands embracing Influencer ecosystem. BeTagged’s platform simplifies Influencer selectin, campaign planning and performance tracking reducing campaign launch time by 50% while driving superior ROI aided by localized managed services.
InCom which went Live recently, is an omnichannel marketplace, enabling any business to sell via Social Media Influencers. Powered by smart attribution algorithm, InCom ensures fair influencer compensation for purchases influenced by their recommendations. Businesses operate on a pay-as-you-sell model with zero cost-risk and can control CAC with no upfront cost.
BeTagged drives convenience, efficiency, and transparency through technology. With clients across Southeast Asia, our expertise caters to multinationals, SME’s, startups, and local businesses. We work with the universe of Influencers including celebrities and micro-Influencers, ensuring our position as the one of the region’s fastest growing Influencer marketing & commerce enterprises.
For more information, please contact:
Shamik Talukder at shamik@betagged.co
This press release was published as it was received from our partner, without any editing from the Tech in Asia team.
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