E-Commerce Trends in Southeast Asia
In the ever-evolving digital era, partnerships between technology companies have become an intriguing topic. The latest news that has surfaced involves the potential investment and transactions of TikTok in GoTo, a conglomerate of Gojek and Tokopedia. Will this create a monopoly in the e-commerce industry? Let’s delve deeper.
According to the recent report titled ‘e-Conomy SEA 2023’ by Google, Temasek, and Bain and Company, it is predicted that the Gross Merchandise Value (GMV) of e-commerce in Southeast Asia will experience a 6% annual increase. This figure is expected to surge from US$130 billion to US$139 billion this year, creating significant growth potential for players in the e-commerce industry.
In the fierce competition in the e-commerce market, several leading platforms hold substantial market shares. Based on data, Shopee dominates with a market share of 45.9%, followed by Lazada (17.5%), Tokopedia (14.2%), and others (8.6%). TikTok Shop has also made its presence felt with a market share of 13.9%. [Source: Katadata]
Potential TikTok Investment in GoTo
The news about TikTok investing in GoTo, which includes Tokopedia, opens up intriguing collaboration possibilities. This investment could materialize in the form of a joint venture, bringing significant impacts, especially in terms of transactions and market share.
Data indicates that TikTok Shop, with a market share of 13.9%, is estimated to have transactions worth US$19.3 billion (Rp 302 trillion). Meanwhile, Tokopedia is in the third position with transactions amounting to US$19.7 billion (Rp 308 trillion). By combining the transaction potentials of both, it is estimated that the combined transactions of Tokopedia and TikTok Shop will reach Rp 610 trillion this year.
Challenges Toward Monopoly
Despite the substantial transaction potential, creating a monopoly is not an easy task. Intense competition from other players, such as Shopee, which holds a dominant market share, indicates that TikTok and Tokopedia face various challenges to maintain and increase their market share.
Certainly, TikTok’s investment in GoTo opens the door for intriguing collaborations in the e-commerce realm. While the predicted combined transactions reach Rp 610 trillion, challenges in achieving a monopoly persist. As we await further developments, the dynamics of the e-commerce industry in Southeast Asia remain an exciting arena to watch.
