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TikTok Shop reports 500% GMV growth
PUBLISHED : 20 Aug 2024 at 06:08
Ms Kornnika, left, and Ms Sirinit at a press conference.
Despite the sluggish economy, TikTok Shop has posted more than 500% growth in gross merchandise value (GMV) in live commerce over the past eight months, according to the platform.
It will also make a significant investment in discount promotional campaigns to encourage domestic consumers to spend during the final quarter of 2024, which would be higher than that for the corresponding period last year in an effort to combat China's Temu and the Shopee platform.
TikTok Shop is likely to maintain its sales commission fee after announcing it would raise the fee in September this year, while increasing monetisation capacities from advertising and live solution.
The platform has also identified four online shopping personas, with 77% of Thai shoppers engaging in online shopping weekly, highlighting the increasing normalisation of online retail.
In Thailand, TikTok has over 3 million creators and 2.4 million sellers, 99% of whom are domestic.
Sirinit Virayasiri, head of business marketing at TikTok Thailand, said TikTok is "entertainment first, commerce second". It is not social or e-commerce but an entertainment platform that provides total solutions to help merchants close sales deals.
"77% of Thais shoppers indulge in retail therapy," Ms Sirinit said.
In the final quarter of 2024, TikTok will continue to invest heavily and spend more than last year to continue its momentum in live commerce, which is its flagship to drive sales in its mega campaigns, said Kornnika Niwattisaiwong, head of FMCG, E-Commerce, at TikTok Shop Thailand.
She added that a new rival platform from China she declined to name offers low prices, but the low cost offering covers only one group of shoppers -- price hunters.
"We have various bands of product prices with content entertainment which can serve a greater variety of users and in line with regulations of overseeing products that need to have local standards," she said.
Ms Kornnika said that from early this year until the recent mega campaign 8.8, TikTok Shop saw an increase of over 500% in GMV via its live commerce platform.
Launched in 2023, the Shop Tab feature has made it easier for users to search for products with just one touch, resulting in a 100% increase in GMV in TikTok Shop.
Additionally, the number of sellers registering as stores in TikTok Shop Mall had increased threefold since the mall launched in the first quarter this year. TikTok Shop Mall GMV recorded eighteen-fold growth between January and August.
According to a study by Kantar, 80% of TikTok users are likely to shop on TikTok Shop during shopping festivals. This aligns with the 140% growth in GMV in live commerce on TikTok Shop during major campaigns compared to non-campaign periods.
Ms Sirinit cited data gathered from TikTok during the Mega Sales festival 2023 that showed 89% of TikTok users chose to shop during the shopping festivals, and this year they are likely to spend 1.7 times more, according to Kantar.
Kantar also revealed that at the end of last year, shoppers on TikTok spent an average of 14,000 baht on each sales event, with double the spend on electronics, and 1.9 times higher on health & fitness for TikTok users versus non-TikTok users.
In addition, TikTok introduced PACE, a framework designed to help brands and stores create a competitive advantage and maximise sales opportunities.
P is the acronym for P-Persona, to understand the behaviour of the target customer groups. TikTok found four shopper groups: the bargain hunters or those who seek best deals and discounts; the effortless shoppers who seek fast process; the inspirational shoppers who are early adopters of new trends; and the purpose shoppers who are thoughtful with deliberate consumption.
A is for Assortment as the platform expands product variety and promotional packages to increase order value and GMV.
C is for Content which is crafting inspiring, high-quality content that drives purchasing decisions such as short video and live, while E means Empowerment of sales by using advertising tools.
"We will introduce an artificial intelligence feature in the last quarter," Ms Sirinit added.
PUBLISHED : 20 Aug 2024 at 06:08
Despite the sluggish economy, TikTok Shop has posted more than 500% growth in gross merchandise value (GMV) in live commerce over the past eight months, according to the platform.
It will also make a significant investment in discount promotional campaigns to encourage domestic consumers to spend during the final quarter of 2024, which would be higher than that for the corresponding period last year in an effort to combat China's Temu and the Shopee platform.
TikTok Shop is likely to maintain its sales commission fee after announcing it would raise the fee in September this year, while increasing monetisation capacities from advertising and live solution.
The platform has also identified four online shopping personas, with 77% of Thai shoppers engaging in online shopping weekly, highlighting the increasing normalisation of online retail.
In Thailand, TikTok has over 3 million creators and 2.4 million sellers, 99% of whom are domestic.
Sirinit Virayasiri, head of business marketing at TikTok Thailand, said TikTok is "entertainment first, commerce second". It is not social or e-commerce but an entertainment platform that provides total solutions to help merchants close sales deals.
"77% of Thais shoppers indulge in retail therapy," Ms Sirinit said.
In the final quarter of 2024, TikTok will continue to invest heavily and spend more than last year to continue its momentum in live commerce, which is its flagship to drive sales in its mega campaigns, said Kornnika Niwattisaiwong, head of FMCG, E-Commerce, at TikTok Shop Thailand.
She added that a new rival platform from China she declined to name offers low prices, but the low cost offering covers only one group of shoppers -- price hunters.
"We have various bands of product prices with content entertainment which can serve a greater variety of users and in line with regulations of overseeing products that need to have local standards," she said.
Ms Kornnika said that from early this year until the recent mega campaign 8.8, TikTok Shop saw an increase of over 500% in GMV via its live commerce platform.
Launched in 2023, the Shop Tab feature has made it easier for users to search for products with just one touch, resulting in a 100% increase in GMV in TikTok Shop.
Additionally, the number of sellers registering as stores in TikTok Shop Mall had increased threefold since the mall launched in the first quarter this year. TikTok Shop Mall GMV recorded eighteen-fold growth between January and August.
According to a study by Kantar, 80% of TikTok users are likely to shop on TikTok Shop during shopping festivals. This aligns with the 140% growth in GMV in live commerce on TikTok Shop during major campaigns compared to non-campaign periods.
Ms Sirinit cited data gathered from TikTok during the Mega Sales festival 2023 that showed 89% of TikTok users chose to shop during the shopping festivals, and this year they are likely to spend 1.7 times more, according to Kantar.
Kantar also revealed that at the end of last year, shoppers on TikTok spent an average of 14,000 baht on each sales event, with double the spend on electronics, and 1.9 times higher on health & fitness for TikTok users versus non-TikTok users.
In addition, TikTok introduced PACE, a framework designed to help brands and stores create a competitive advantage and maximise sales opportunities.
P is the acronym for P-Persona, to understand the behaviour of the target customer groups. TikTok found four shopper groups: the bargain hunters or those who seek best deals and discounts; the effortless shoppers who seek fast process; the inspirational shoppers who are early adopters of new trends; and the purpose shoppers who are thoughtful with deliberate consumption.
A is for Assortment as the platform expands product variety and promotional packages to increase order value and GMV.
C is for Content which is crafting inspiring, high-quality content that drives purchasing decisions such as short video and live, while E means Empowerment of sales by using advertising tools.
"We will introduce an artificial intelligence feature in the last quarter," Ms Sirinit added.
