Then, now, and what’s next for TikTok Shop

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Hello reader,

Have you bought anything on TikTok Shop? Despite spending way too much time on the TikTok app, scrolling through videos for hours on end, I’ve not actually made a purchase on TikTok Shop yet.

In my head, I still think of TikTok as entertainment, and I tend to keep my shopping to familiar platforms, such as Shopee. However, I might be the exception, given how much TikTok Shop has grown since it first landed in Southeast Asia back in 2022.

It’s posted some impressive numbers, but it hasn’t had an easy time of things – and the road ahead doesn’t look that smooth either. My colleague Jofie goes deeper in today’s premium story.

Today we look at:

• TikTok Shop’s growth in Southeast Asia so far
• What’s going on at Byju’s
• Other newsy highlights such as InMobi’s plans to list in India and Paytm’s Q1 results

Premium summary

What’s hot, TikTok Shop?

Image credit: Timmy Loen

TikTok Shop burst into Southeast Asia’s ecommerce scene just two years ago, but its growth has been pretty explosive. Let’s take a closer look at where it’s at right now.

• Going and growing: TikTok Shop’s gross merchandise value (GMV) nearly quadrupled to US$16.3 billion in 2023 from US$4.4 billion in the previous year. Although Shopee’s US$55.1 billion GMV is still far from its reach, TikTok Shop has emerged as the most noteworthy challenger, especially after its merger in Indonesia with local player Tokopedia in December 2023.
• Challenges abound: However, TikTok Shop will have to navigate several challenges on the road ahead, such as the impact of cutting back on subsidies for discounts and promotions across markets, integration issues with Tokopedia, and stricter regulations in Southeast Asia on cross-border ecommerce and livestreaming.
• The future: TikTok Shop’s future success depends on several factors. Some experts say the next step of growth for TikTok Shop in the region hinges on strengthening its ecommerce presence beyond live commerce, including building credibility with buyers in categories beyond beauty and fashion..

Read more: TikTok Shop narrows gap with Shopee, but the honeymoon could be over

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Bad news at Byju’s

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