TikTok Shop’s GMV projection increased by 241%, compared to its previous results which reached US$600 million (2021) and US$4.4 billion (2022).
Heaptalk, Jakarta — The Gross Transaction Value (GMV) of TikTok Shop is projected to surge, attaining US$15 billion, approximately Rp230 trillion this year. The estimation is claimed to exceed other giant e-commerce platforms, including Lazada and Tokopedia, which have been around for over a decade.
The market share for TikTok Shop will also increase by 880 basis points (bps) to 13.2. The TikTok Shop is also expected to erode Tokopedia’s market from 18.5% in 2022 to 13.9% this year. Besides Tokopedia, TikTok Shop is estimated to exceed Lazada’s market share from 20.25 to 17.7% this year. In addition, Shopee has a substantial market share of around 48.5% and is not affected by the presence of the TikTok Shop.
In more detail, The Momentum Works report revealed that TikTok Shop’s GMV is projected to increase to 241%, compared to its previous results of US$600 million in 2021 and US$4.4 billion in 2022. This significant escalation is boosted by the company’s expansion strategy and the addition of video and live-streaming features, which contribute to the transaction growth.
In terms of its users, the report also demonstrated that TikTok Shop’s Monthly Active Users (MAU) had attained over 1 million users globally. Meanwhile, the most purchased products are in the beauty and personal care category based on Q1 2023 performance.
Based on the GMV value, the beauty category has contributed 70%, compared to other categories such as women’s fashion (9%), culinary (5%), smartphones and electronics (4%), household furniture (5%), and toys and hobbies (7%).
“Globally, TikTok Shop might threaten other e-commerce companies, including Shopee and Lazada in Southeast Asia, and Amazon in the United States and the Middle East. Regionally,” The Momentum Works said.
Nevertheless, the GMV contributed by Shopee still leads the position, valued at US$47.9 billion, Lazada with a GMV value of US$20.1 billion, and Tokopedia with US$18.4 billion regionally.
As an expansion effort into several countries, TikTok Shop has existed in nine countries, including Southeast Asia as its primary market, China, the United Kingdom, Saudi Arabia, and the United States. In the Chinese market, this platform is under the name Douyin.
