TikTok optimistic on prospects for growth
Platform banking on 'shoppertainment'
published : 24 Aug 2022 at 04:27
newspaper section: Business
writer: Suchit Leesa-nguansuk
Short-video platform TikTok is expecting strong growth in Thailand where the "shoppertainment" market is forecast to jump to US$12.4 billion by 2025, up from $3.4 billion this year.
Thailand ranks fourth out of six markets in Asia-Pacific in terms of gross merchandise value (GMV) in shoppertainment, behind Vietnam, Indonesia and Australia, according to a study by Boston Consulting Group (BCG), commissioned by TikTok.
Another two countries studied are South Korea and Japan.
"TikTok is growing rapidly and becoming an alternative platform where entertainment meets commerce for brands and sellers to engage in sales conversion led by entertainment content as we call shoppertainment," said Sirinit Virayasiri, head of business marketing at TikTok.
Thai users spend an average of 100 minutes a day on TikTok and visit 12 times on average per day, based on the study, entitled "Shoppertainment: APAC's Trillion-Dollar Opportunity".
Shoppertainment is content-driven commerce that seeks to entertain and educate while integrating content and community to create highly immersive shopping experiences.
"Shoppertainment lead conversion sales faster due to its emotional connection," said Ms Sirinit.
Content on TikTok is immersive, short and unique that could drive people to shop in e-commerce marketplaces, retail stores, brand websites and TikTok shops.
Asia-Pacific is expected to see the GMV of shoppertainment surge to $1.1 trillion in 2025, up from $500 billion in 2022, according to the study.
Ms Sirinit said that the shoppertainment opportunity in Thailand is huge as it is projected to reach $12.4 billion by 2025.
Across Thailand markets, fashion and accessories, beauty and personal care, food and beverages, and electronic devices have emerged as the largest categories for shoppertainment contributing more than half (55%) of the projected total market value for shoppertainment, she said.
Across these categories, 40-60% are influenced by video content in purchase, serving as a leading indicator for potential upside, Ms Sirinit said.
The top three categories to focus on shoppertainment in Thailand are fashion and accessories at 18%, followed by beauty and personal care at 17%, and food and beverages at 13%, she said.
The study revealed that Asia-Pacific consumers are expecting brands to focus on entertainment before complementing it with clear product information and intuitive paths to purchase to seamlessly drive consumers from awareness, and desire to conversion.
Some 81% of the respondents surveyed expect storytelling and educational-first content.
Some 71% find that authenticity is important in making content engaging so brands can create an authentic brand sentiment, with credible reviews and open and engaging community conversations that inspire the community through product reviews or unboxing videos.
Some 71% expect brands not to force decision-making when engaging consumers while 65% want to see trusted advice and recommendations on brands online.
"Shoppertainment can provide the sweet spot for brands to reignite consumers' purchasing passions in an authentic and consumer-driven way," said Aparna Bharadwaj, managing director and partner at BCG.