TikTok's E-commerce Push

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[...] These agreements can simplify import/export processes and provide opportunities for TikTok's e-commerce platform to tap into larger market areas CAGE Analysis: Economic factors Key factors ● Market Size ● Competitive landscape ● Type of product sold ● Costs of entering CAGE Analysis: Economic factors Market size ● The Indonesian online retail sector grew by 59.4% in 2020 to reach a value of $17,626.3 million ● Indonesia accounts for 1.8% of the Asia-Pacific online retail sector value ● In 2025, the Indonesian online retail sector is forecast to have a value of $59,007.9 million, an increase of 234.8% since 2020. ● TikTok sees as a $1,000bn opportunity in the region. Competitors ● The largest player is PT Matahari Department Store, with other leading players being Bhinneka, Mitra Adi Perkasa Tbk PT and Zalora. [...]

[...] TikTok's E-commerce Push TikTok's E-commerce Push TikTok has a new ecommerce platform & is looking to enter a new Asian market CAGE Analysis : Cultural relevance Key factors ● Consider language, aesthetics, popular trends, and cultural sensitivities ● See if it is more used by women or men, average age of users, which users buy on TikTok, which type of products ? ● Population willingness to buy products online ○ “Unlike other regions, where people shop only when they need an item, shopping is a true fun activity in our region” – Paul Srivorakul, co-founder and group CEO of ecommerce enabler aCommerce. [...]

[...] TikTok is banned from India and Taiwan for example. ● See local regulations to do business online ● Possibility of subsidies and collaboration with local governments ● Tax regimes in different regions that might entice setting up base Focus : Indonesia : the app was banned in 2018 but since the ban has been removed. CAGE Analysis: Geographic factors Geographic : supply chain, Headquarter in one of the Asian countries, Collaborate with trusted local partners can facilitate market entry, leverage existing networks, and tap into their expertise Relative proximity to China for supply chain Prominence of local tastes to ship localized products Urbanization rate: people in urban areas tend to have more access to internet Indonesia, Vietnam, the Philippines and Thailand rank among the top ten countries with the most active TikTok users. [...]