The trend was revealed in an annual survey by Singapore-based consultancy Momentum Works published in Nikkei Asia on Tuesday.
TikTok's e-commerce division, TikTok Shop, is expected to see significant growth in gross merchandise volume (GMV), nearly quadrupling from $4.4 billion in 2022 to $16.3 billion in 2023.
This dramatic growth, combined with TikTok's acquisition of a majority stake in Indonesia's Tokopedia last year, has propelled the platform to second place in the ASEAN e-commerce market, with an estimated 28.4% share by 2023.
According to the report, Southeast Asia's e-commerce gross merchandise volume (GMV) is expected to reach $114.6 billion in 2023, up 15% from the previous year.
Shopee maintained its position as the market leader with a 48% share, while Lazada dropped to third place with 16.4%.
TikTok and Tokopedia each have a 14.2% market share. Tokopedia is now TikTok's “shop” service in all but name and branding, and “integration is progressing after the Indonesian elections, with the TikTok shop team gradually replacing its systems and processes,” according to the report.
The report adds that “while TikTok Shop is not yet at Shopee's core, it represents a large part of Shopee's potential growth.”
Agile Movement
MomentumWorks also noted how remarkably quick TikTok Shops was able to find a solution to the ban in Indonesia in just two months — a move that transformed stakeholders in Tokopedia's parent company, GoTo Group, from adversaries to allies, including powerful Indonesian business figures, demonstrating TikTok Shops' agility and ability to learn quickly.
