In The Checkout this week, we analyze how TikTok's ecommerce arm revitalizes the live-shopping scene and look at Temuâs arrival in the region. [Read from your browser]( The Checkout ð --------------------------------------------------------------- Welcome to The Checkout! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in ecommerce. You can find past issues [here]( or [sign up here]( to receive future newsletters. Also, If youâre not a subscriber, get access by [registering here](. IN FOCUS In today's newsletter, we spotlight: - How TikTok Shop [fuels a new gold rush]( for Southeast Asiaâs live-shopping scene
- Temuâs arrival in the region --------------------------------------------------------------- Hello {NAME} Several weeks ago, I visited the livestream studios of Social Bread and BintanGo in BSD City and Jakarta, respectively. I witnessed firsthand how the hosts conducted TikTok live-selling sessions for brands that are clients of those companies. There were several things I learned from the visit, such as the hosts being required to talk non-stop because thereâs a rule against live sessions going too quiet for too long. Most hosts can go live every day. They typically broadcast for six hours a day, but they didn't seem to complain about their working hours. Recently, the demand for talented hosts to sell products on TikTok has been increasing, and so is the number of startups providing studios or solutions to enable live commerce. I analyze this trend in this week's Big Story with my colleague Huong. We examine the rise of live commerce enablers following the boom of TikTok in Southeast Asia. In addition to enabler startups trying to ride the wave, the live commerce trend is also driving the regionâs creator economy. In fact, many new creators werenât very active on social media until they became hosts. As for the Hot Take, I delve into the entry of Pinduoduo's sister app Temu into Southeast Asia, with the Philippines as its first market. Can the ecommerce firm replicate TikTokâs boom in the region? What are the challenges? Read the details below. -- Jofie
 --------------------------------------------------------------- THE BIG STORY [TikTokâs live-commerce boom: hustler's paradise or fleeting trend?]( Similar to the rise of Chinaâs so-called âlivestreaming factories,â training TikTok live sellers has also become big business in the region.
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THE HOT TAKE Can Temu replicate TikTokâs boom in Southeast Asia? Hereâs what happened: - Temu, the sister company of Chinaâs Pinduoduo, has finally landed in [Southeast Asia](.
- The ecommerce platform launched in the Philippines at the end of August.
- This move brings Temu into direct competition with incumbents such as Shopee, Lazada, and TikTok Shop. Hereâs our take:
After much speculation, Temu has finally arrived in Southeast Asia. This comes at a time when TikTok Shop has been enjoying substantial growth in the region over the past year. Can Temu replicate TikTok's growth as a newcomer in the region? It seems unlikely. Unlike TikTok, Temu doesn't have the social media aspect that will set it apart from heavyweights like Shopee and Lazada. [Several analysts]( also say a low-price strategy won't work in Southeast Asia, considering there are already many alternatives to buy inexpensive Chinese goods. Furthermore, Temu is likely to struggle to enter markets like Indonesia, which contributes the largest share of gross merchandise value (GMV) to the regionâs ecommerce sector. Recently, concerns about the abundance of imported products on ecommerce platforms have resurfaced in the country. TikTokâs [Project S]( was said to harm MSMEs, but in reality, this initiative doesnât reach Indonesia. These concerns then prompted the Indonesian government to revise ecommerce regulations to protect MSMEs. Some new rules it plans to implement include banning ecommerce platforms from producing goods. Imported products priced below US$100 will also be [prohibited]( from being sold on these marketplaces. These rules will make it challenging for Temu to operate in Indonesia, as it relies on cross-border services, especially while its products [mostly come from China](. This is unfortunate for Temu because we've seen how TikTok Shop can achieve significant growth on the back of its business in Indonesia. Last year, 57% of TikTok Shop's GMV in Southeast Asia came from the country, according to a report from Momentum Works. See also: [Why SEA should watch out for Sheinâs top rival Temu]( Notably, Shein, Temu's competitor in the US, [failed in Indonesia]( and decided to discontinue its services in July 2021. The ultra-fast fashion giant didnât explain why it exited the market, but steep logistics costs and strict regulations were likely to have played a role. Nevertheless, Temu can target markets outside of Indonesia. Shein has done this by entering Singapore, the Philippines, Thailand, and Malaysia to drive its business in the region. In the Philippines, where both companies are competing, Shein was in the top three shopping apps in terms of active users last month, with Shopee and Lazada taking the lead, according to Data.ai. TikTok isnât included on this list because it is likely still identified as a social media app rather than an ecommerce platform. According to Momentum Works, TikTok Shop had a 4% market share in the Philippines in 2022, far behind Shopee with 60% and Lazada with 36%. In addition to revitalizing the live-shopping experience, TikTok Shop became popular quickly due to the many promotions and big discounts offered on its app. This will also be a challenge for Temu as it has to provide more affordable products to attract consumers. So far, it is unclear whether Temu will expand to other countries in Southeast Asia. What is clear is that the region will see intense competition in ecommerce, a space that Shopee and Lazada had dominated for years.
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NEWS YOU SHOULD KNOW Check out Tech in Asiaâs coverage of the ecommerce scene [here](. 1ï¸â£Â [Shopee opens new warehouse in Jakarta to export MSME products]( The warehouse can process âtens of thousandsâ of packages per day, the firm said in a statement. 2ï¸â£Â [PDD Holdings Q2 revenue soars 66% on post-Covid demand]( PDDâs profits surged due to a âpositive shiftâ in consumer outlook spanning multiple product categories. 3ï¸â£Â [Bukalapak-backed ecommerce firm iPrice expands to Australia]( This marks iPriceâs first âsignificant expansionâ beyond Southeast Asia, the company said in a statement. 4ï¸â£Â [Former Uber, Deliveroo execs launch HK wholesale platform]( Markato, which was founded in 2023, plans to expand to other Asian markets in the next year. 5ï¸â£Â [Shein buys stake in Forever 21 parent to form fast-fashion alliance]( Sparc Group will also become a minority shareholder in Shein.
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