THE e-Conomy SEA report released last November by Bain & Co. said electronic-commerce in Southeast Asia continues to accelerate, fuelled by video commerce using social media platforms.
In the region, video commerce accounts for 20 percent of e-commerce gross merchandise value (GMV) to date, up from less than 5 percent in 2022.
The report affirms findings of ResearchAndMarkets.com published by Yahoo Finance in April which said the social commerce industry in the Philippines is expected to grow at a compounded annual growth rate of 16.3 percent from 2024 to 2029. Social commerce is expected to reach $2.33 billion by 2029, a staggering growth from $909.48 million in 2023.
The study, as quoted by Yahoo Finance, said social media sites have become popular platforms of commerce carrying a wide range of retail product categories from clothing and footwear, beauty and personal care, food and grocery, appliances and electronics, etc.
Taking on huge leap in this space is TikTok Shop whose officials were earlier quoted as saying GMV recorded on the platform grew by 2.28 times in the first half of 2024.
“TikTok Shop’s Shoppertainment strategy integrates entertainment with commerce, transforming how businesses engage with consumers. This approach fosters deeper connections, boosts brand discovery, and drives purchasing through an immersive experience,” said Bea Bautista, communications manager of TikTok Malaysia and the Philippines.
In an interview with Malaya Business Insight, Bautista emphasized the role of TikTok Shop in empowering micro, small, and medium enterprises (MSMEs) to enjoy greater opportunities to build and expand their business.
She said the platform also provides tools that equip MSMEs with skills focused authenticity and storytelling.
Bautista noted the importance of fostering trust in shaping consumer perceptions.
“By creating a transparent shopping environment, MSMEs are able to build credibility and long-term customer loyalty,” Bautista said.
Engaging content through liveselling, for example, enables MSMEs to connect directly with consumers.
“This real-time interaction builds trust, influences purchasing decisions, and shifts consumer preferences towards more dynamic and participatory shopping experiences,” Bautista said.
The ACE (Assortment, Content, and Empowerment) Indicator System, another tool on TikTok Shop, enables MSMEs understand consumer behavior and optimize their approach by offering diverse products, engaging content, and tools to build authentic connections.
“This model drives audience growth, fosters loyalty, and boosts sales, especially during major shopping events,” Bautista said.
A game changer is TikTok Shop’s Buy Local Shop Local campaign which puts the spotlight on MSMEs and homegrown brands and businesses through in-app campaigns, media amplification, media and stakeholder immersions, and success stories or case studies
According to Bautista, the campaign has promoted over a thousand local sellers and over 330,000 local products.
