TikTok has raised its e-commerce gross merchandise worth (GMV) goal to $20 billion this yr, based on a Bloomberg report. That could be a speedy improve from final yr’s $4.4 billion in GMV, which is the whole price of products bought by its TikTok Shop providing, sources informed Bloomberg. TikTok is banking on South Asian markets, like Indonesia, the place influencers leverage live-streamed movies to advertise and promote merchandise. It began to roll out comparable providers for markets together with Indonesia, Vietnam, and the UK in 2021. Previous stories revealed that its e-commerce GMV in Indonesia averaged round $200 million per thirty days in the primary half of 2022, whereas the determine for the UK throughout the identical interval was $24 million. While it has since scaled again its British enterprise, the ByteDance-owned quick video app continues to thrive in Southeast Asia, a market the place rivals similar to Alibaba’s Lazada are additionally current. “The rapid growth of TikTok Shop poses a direct threat to Southeast Asia’s incumbent e-commerce leaders,” Simon Torring, co-founder of e-commerce analysis agency Cube Asia, informed Bloomberg. “It is however still too early to declare TikTok Shop’s victory. It has not yet demonstrated the ability to gain significant growth momentum outside the beauty and fashion categories, and a lot of the current growth is heavily subsidized by TikTok through vouchers and aggressive marketing spending.” [Bloomberg]
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