IN FOCUS
In today’s newsletter, we look at:
- How Southeast Asian sellers are pivoting from TikTok Shop amid the threat of a ban in the US.
- TikTok Shop’s “disappointing” performance in Southeast Asia last year.
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In January, TikTok’s brief shutdown in the US caused a frenzy.
Although the closure lasted less than a day, the uncertainty surrounding TikTok’s status led many users to migrate to other platforms like Xiaohongshu.
The shutdown’s effects have also rippled outside the country. TikTok Shop’s merchants in Southeast Asia, which sell to a global audience including the US, could lose access to a large market.
In 2024, the social commerce platform generated about US$9 billion in gross merchandise value (GMV) from the US alone, up from US$1.2 billion the previous year.
As Jamille from The Business Times discusses in this week’s Big Story, the threat of a ban is forcing regional merchants to return to other ways of reaching their American customers.
There is one bright spot: US President Donald Trump’s imposition of 10% tariffs on Chinese imports could make Southeast Asia-based sellers more competitive.
Meanwhile, in this edition’s Hot Take, I analyze TikTok Shop’s performance in Southeast Asia last year and its chances of catching up to Shopee as the dominant player in the region.
— Jofie
THE BIG STORY
US TikTok ban pushes SEA merchants to Amazon, Etsy
Image credit: Timmy Loen
THE HOT TAKE
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