Shopee vs TikTok in the battle for Indonesian eCommerce | Eureka AI Moment
Michael Hawkins
Chief Data & Insights Officer @ Eureka AI | AI Agents, Marketing Analytics, Marketing AI, Sales Leadership, Data driven Decisions
Michael Hawkins
Wednesday 7th Feb 2024
With the announcement last week of the completion of the merger between Tokopedia and TikTok Shop, we enter a new phase of “fierce competition” in Indonesian eCommerce.
In our first edition of Eureka Moments Indonesia for 2024, we share one chart and three insights on the ecommerce digital landscape in the next 12 months.
We are also excited to announce the launch of our advertising product, Explorer which allows you to use Eureka’s unique intelligence on the Indonesian digital economy to improve the targeting and ROI on your advertising. ?Click here to learn more.
Eureka Moment Chart: Monthly eCommerce Transactions Shopee vs TikTok Shop
With the rise of Live shopping via TikTok Shop, the return of crazy discounts and free delivery plus the ever expanding volume of choice from global sourcing, the category has seen exceptional growth. But at what cost?
Our data this week tracks the volume of eCommerce transactions by month for the Shopee and TikTok shop across 2023 in Indonesia. Our measurement of TikTok Shop separated from the main TikTok app started in May 2023.
Insight One: Incredible 31% category growth, but where next?
The Category as a whole has seen significant transaction growth with 31% more transactions in December 2023 than the prior year.
As we’ve explained over the last 6 months, growth always comes from increased penetration - more people buying, more often.
Smartphone penetration of ecommerce ?(the number of all potential users with a data enabled phone who used ecommerce in the month) stood at 57% in June 23 and had risen to 65% by December. An incredible rise of 8 percentage points in six months! So where will 2024 growth come from?
It will come as no surprise to learn that most of the 2023 growth came from outside Jakarta, so brands will need to invest in growth outside the capital. ?Eureka data and targeting capabilities can tell you exactly which provinces and kabupatens to focus on.
Insight Two: The rise and rise of Shopee
It was fascinating to read that Forest Lee, the CEO of SEA group told his team that the competition had not seem them in full fighting mode yet! Our data shows the full extent of that muscle.
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Shopee’s reach is exceptional. Shopee’s conversion of that reach is phenomenal. What’s more scary is that Jabodatabek is not even their strength as Tokopedia provides significant competition in the capital. Even with a more tempered approach to promotions in the first half of 2023, when Lazada was throwing money to the wind, Shopee has grown in all metrics.
And then there is Shopee.Live. ?We noticed a shift in traffic to live shopping through the year and can now see these two distinct paths to purchase in our Shopee data.
Watch this space as the live shopping battle with TikTokopedia develops!
Insight Three: TikTok Shop and Tokopedia - the perfect fit!
In terms of Regional coverage, the collaboration between the local hero and the global giant is a marriage made in heaven. Tokopedia has always given Shopee a run for its money in the massive commercial market of greater Jakarta, while TikTok Shop has been a huge hit with Indonesians in the rest of Java, Sumatra and Sulawesi.
The combined unit has the potential to deliver a significant synergies from a shopper behaviour perspective.
Insight to Action: Use Eureka Data to Advertise to Target Audiences
With daily data from more than 100 million Indonesian consumers and billions of data points, we can tell you exactly which audiences to focus on for growth.
We can now provide you these customers as Custom Audiences and targeted messaging on social media and messaging apps - Facebook, Instagram, Tik Tok, Google Ads and Whats App. Drop me a line to learn more.
We can identify Light Category Users ready to be acquired for your brand and Heavy competitor brand buyers who are ripe to switch.
Message me at [email protected] if you are interested in how your competitors are performing in Hong Kong, Indonesia or Thailand.
You can also connect with me on linkedin here Michael Hawkins
Absolutely fascinating insights! ?? As Steve Jobs once said, "Innovation distinguishes between a leader and a follower." eCommerce in Indonesia is clearly leading the way with these innovative trends! ?? Speaking of innovation, Treegens is thrilled about the upcoming sponsorship opportunity for the Guinness World Record of Tree Planting. It’s a chance to make history while promoting sustainability. ?? Check it out here: https://bit.ly/TreeGuinnessWorldRecord Let's innovate and grow together! ?? #EcommerceInnovation #Sustainability #TreePlantingRecord
Absolutely love the simplification of complex data into insightful nuggets! ?? As Steve Jobs once said, “Innovation distinguishes between a leader and a follower.” ?? Your approach to analyzing eComm trends in Indonesia is paving the way for innovative strategies. Keep leading the way! ?? #Innovation #eCommerce #Insights
Helping companies create engagement and retention through experiences || Community builder - Co-President of La French Tech Indonesia || Connector || Contact me!
9 个月Henry PFISTERER , Marcella Dewi , you might want to explore this new feature from Eureka if never heard before. Mike, as usual, great insight ????
Chief Strategy Officer at Packhelp | Marketplace, Retail & Digital experience | Entrepreneurial spirit
9 个月Impressive analysis, Michael Hawkins!
It's so exciting to see how the growth of the TikTok Shop is reshaping the e-Commerce landscape. It's crucial to leverage this shopping trend and influencer marketing to navigate and stand out from competition.