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TikTok’s e-commerce push faces headwinds in Southeast Asia as other countries could follow Indonesia’s ban on online shopping via social media
- Other offline retailers in Southeast Asia whose interests are affected by social commerce platforms are expected to lobby for a ban on TikTok Shop
- Following Jakarta’s ban on online shopping via social media, neighbouring Kuala Lumpur reportedly intends to look into that policy
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Ben Jiangin Beijing
The e-commerce push of TikTok, the global hit short video app owned by ByteDance, is expected to face more headwinds in Southeast Asia, as Indonesia’s ban on online shopping via social media encourages other countries in the region to adopt similar policies, according to analysts.
Indonesia, the largest economy in Southeast Asia, imposed from late September a ban on e-commerce transactions via social media to protect the country’s micro, small and medium-sized enterprises. TikTok, which is headquartered in Singapore, complied with Jakarta’s directive on October 4, when it ceased sales on e-commerce platform TikTok Shop.
Across other Southeast Asian economies, offline marketplaces and merchants whose interests are affected by social commerce platforms are likely to complain to their governments and lobby for a ban on TikTok Shop, according to Li Jianggan, founder of Singapore-based venture outfit and research firm Momentum Works.
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“TikTok is unparalleled when it comes to e-commerce conversion in the industry,” Li said. He added, however, that TikTok would find it more difficult to expand its e-commerce activities if its users are not able to directly shop from the app.
TikTok, which started offering in-app shopping in mid-2021, did not immediately reply to a request for comment on Wednesday.
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