Many winners in TikTok-Tokopedia tie-up, but Shopee’s not one of them

IN FOCUS

In today’s newsletter, we look at:

• What a TikTok-Tokopedia tie-up could mean for Shopee
• Shein’s uphill climb to an IPO
• Whether AI bots could replace human livestreamers

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Hi there,

TikTok is a gift that keeps on giving.

In October, Indonesia prohibited ecommerce transactions on social media platforms. This triggered TikTok Shop’s shutdown in the country, but just two months after the ban, the app appears to be bouncing back.

While rumors have swirled about potential tie-ups with local ecommerce firms including BliBli and Bukalapak, TikTok’s deal with Tokopedia – still subject to approval from regulators – is its most definitive pact yet.

For Tokopedia, such an agreement eliminates competition from a former rival.

As its ByteDance-owned competitor chipped away at its market share, Tokopedia remained conservative instead of going all in with livestreaming like Southeast Asian giant Shopee.

That wait-and-see approach paid off when TikTok Shop ceased operations in October, and it could work well for Tokopedia again.

With details of the new agreement still up in the air, my colleague Jofie discusses what a partnership between the two companies could look like in this week’s Big Story.

Another ecommerce player, Shein, is eyeing a public listing in the US by as early as 2024.

The ultra-fast fashion firm may be headquartered in Singapore, but it can’t hide its Chinese roots. Its origins have made it the target of both US lawmakers and the Securities and Exchange Commission, and this scrutiny is just one of the challenges that Shein faces as it heads toward a stock market debut. I examine the company’s IPO journey in this week’s Hot Take.

— Melissa

THE BIG STORY

Is the potential TikTok Shop-Tokopedia deal just a strategic stopgap?

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI