Week #15: TikTok Shop's GMV Reaches $5 Billion in Indonesia for May | U.S. Intensifies Enforcement Against Trade Practices Employed by Shein and Temu
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
David Beckham Tapped As AliExpress Global Ambassador Ahead of UEFA EURO 2024
TikTok Shop's Global Sellers Surpass 15 Million
TikTok's Rival Kuai Reaches 60 Million Monthly Active Users in Brazil
Temu Exceeds 1.28 Million Customer Milestone in Hungary
TikTok Shop's GMV Reaches $5 Billion in Indonesia for May
U.S. Intensifies Enforcement Against Trade Practices Employed by Shein and Temu
Anker's Q1 Revenue Rises 30.09% to Reach $600 Million
Legislator Advocates for TikTok Ban in the Philippines, but Proposal Denied
EDA Group Shares Surge Over 35% in Hong Kong Debut
David Beckham Tapped As AliExpress Global Ambassador Ahead of UEFA EURO 2024
Alibaba Group's global marketplace AliExpress announced former professional footballer David Beckham as a global ambassador. Beckham is the face of the platform's Score More with AliExpress campaign, which has a range of deals and prizes on offer to celebrate this summer's UEFA European Football Championship.
AliExpress is investing millions of Euros in discounts and user engagement as part of an exclusive global sponsorship announced in March. "AliExpress is helping fans get even closer to UEFA EURO 2024 this summer, by offering them great prizes as the action takes place on the pitch," said David Beckham.
Starting this month, 24 teams across the region will compete over 51 matches for a shot at gold medals and part of the prize pool. Official UEFA data reveals that the 2020 UEFA EURO garnered a global audience of 5.23 billion, with 328 million viewers tuning in for the final match. As a premier sporting event, this year's UEFA EURO stands on par with the renowned American Super Bowl.
Faced with competition from rivals like Temu, Alibaba has ramped up its global expansion efforts this year. In the Korean market, AliExpress has enlisted renowned actress Tang Wei as brand ambassadors. And in Asia, the company has invested another $230 million into its Southeast Asia-focused platform, Lazada.
TikTok Shop's Global Sellers Surpass 15 Million
TikTok reported that more than 500,000 merchants were selling to US users on its app at the end of 2023, more than double the number from three months earlier, as the video service stepped up its e-commerce effort. Worldwide, TikTok Shop had more than 15 million sellers in December, adding more than 6 million in the second half of the year, according to the company's first TikTok Shop Safety Report.
Despite its success, the company has recently been subject to backlash over security and privacy concerns. The European Union is currently investigating TikTok to see whether the platform has violated the bloc's rules designed to protect children and ensure transparent advertising.
The ByteDance-owned platform said that in 2023, it invested more than $400 million in platform safety and the company has established a team of more than 7,500 people to help keep protect users and prevent the sale of prohibited or counterfeit goods. TikTok Shop deactivated over one million seller accounts between July and December 2023 and removed their products due to policy violations.
TikTok's Rival Kuai Reaches 60 Million Monthly Active Users in Brazil
Kwai, a competitor to TikTok, has surpassed 60 million monthly active users (MAUs) in Brazil, capturing roughly 30% of the country's population. On average, users spend over 70 minutes per day on the platform. In the fourth quarter of 2023, Kuai's overseas revenue surged nearly 200% year-over-year to $116.96 million, with online marketing revenue in Brazil soaring over 300% year-over-year.
Kwai's growth in Brazil is largely due to its focused localization strategy. Through partnerships with local entities, the platform curates short-form video content that resonates with Brazilian audiences. The introduction of the TeleKwai brand in Brazil has been particularly impactful, amassing over 25 million MAUs and generating 7.53 billion views in less than nine months.
Additionally, Kwai has strengthened its local brand recognition by sponsoring Flamengo, a renowned Brazilian football club. This strategic sponsorship aligns the platform with sports events that are highly significant to the Brazilian populace, further enhancing its local presence and brand visibility in the market.
Temu Exceeds 1.28 Million Customer Milestone in Hungary
Temu has reached a significant milestone in Hungary, amassing over 1.28 million customers within just eight months since its entry in September 2023, according to data from GKID.
In the first quarter of 2024 alone, Hungarian customers placed more than 1.5 million orders on Temu, with the total value of nearly 22.5 billion forints (approximately $63 million USD). This figure represents 7% of Temu's overall gross merchandise value (GMV).
Szabolcs Timár, senior analyst and partner at GKID, noted that all e-commerce segments, except online FMCG (fast-moving consumer goods), are experiencing a decline in traffic and shoppers due to the competition from Chinese online retailers like Temu.
TikTok Shop's GMV Reaches $5 Billion in Indonesia for May
TikTok Shop achieved a milestone in May 2024, reporting total sales volume of $5.07 billion in Indonesia, with a daily average of $163 million, according to the latest data from Tabcut.
Indonesia remains TikTok Shop's leading market in Southeast Asia, accounting for 60% of the region's e-commerce gross merchandise value (GMV) as of 2022. On February 29th, GoTo disclosed that Indonesia ranks as TikTok's second-largest global hub, with 125 million monthly active users (MAUs), trailing only the United States.
In a significantly strategic move, TikTok CEO Zhou Shouzi committed in mid-June 2023 to invest $10 billion in Indonesia over the next five years. Echoing this ambition, Vonny Emita Susamto, head of TikTok Shop Indonesia's Brand Incubation, stated in May 2023 that the platform aims to surpass industry giants like Shopee and Tokopedia to become the leader in Indonesia's e-commerce sector.
Projections from the Indonesian Central Bank indicate e-commerce sales in the country will surpass $44 billion by 2024, marking a more than sixfold increase from 2018. The growth trajectory of TikTok's e-commerce venture in Southeast Asia is poised for tremendous potential.
U.S. Intensifies Enforcement Against Trade Practices Employed by Shein and Temu
In response to concerns over customs exemptions utilized by companies such as Shein and Temu, U.S. officials have intensified enforcement measures, leading to the suspension of air charter operations by some Chinese e-commerce sellers into the United States. This crackdown on e-commerce imports has also resulted in the recent suspension of six customs brokers, including Seko Logistics.
Seko Logistics' involvement in the Entry Type 86 program has been suspended for a period of 90 days, until August 24th. The Type 86 program is a voluntary initiative in which a consignee can have its customs broker provide CBP with data filed through the agency's automated broker interface (ABI) under the de minimis rule, which allows for the import of one package per day worth $800 or less without paying duties or tariffs.
The suspension of Entry Type 86 is expected to directly impact Temu's shipments into the United States.
Anker's Q1 Revenue Rises 30.09% to Reach $600 Million
Anker Innovations reported a significant revenue increase in the first quarter of 2024, reaching $600 million, up 30.09% compared to the same period last year. The net profit attributable to the parent company was $42.94 million, a modest rise of 1.6% year-over-year.
Regionally, Anker's revenue in China hit $22.65 million, reflecting a 24.06% increase year-over-year, while overseas revenue surged to $581.88 million, up 30.34% year-over-year.
Despite a general downturn in consumer demand, Anker maintained its growth trajectory by focusing on its core business and continuously launching new products across various categories. Notable releases included:
Anker MagGo: Ultra-fast wireless charging series
Anker SOLIX C800 Plus: Outdoor power storage solution
Eufy X10 Pro Omni: Vacuum cleaner
Soundcore C30i: Earbud headphones
Soundcore Boom 2: Bluetooth speaker
AnkerWork S600: Smart office solution
Anker's sustained growth underscores its strategic focus and innovative product pipeline, positioning the company well in a challenging market environment.
Legislator Advocates for TikTok Ban in the Philippines, but Proposal Denied
On May 24th, Manila 6th District Rep. Bienvenido Abante Jr. introduced House Bill Number (HB) No. 10489, proposing a ban on TikTok and other applications from potential "foreign adversary countries" to safeguard Filipino interests. The bill aimed to regulate "foreign adversary controlled applications" and the Internet hosting services through which users access them.
However, after four days of deliberation, on May 28th, the Department of Information and Communications Technology (DICT) expressed reluctance to implement a complete ban on TikTok in the Philippines. Instead, the DICT underscored the importance of monitoring and regulating all social media platforms and websites.
TikTok currently has 49.9 million active users in the Philippines, with an average monthly usage time of nearly 41 hours. Additionally, TikTok Shop Philippines has experienced significant growth, with a ninefold increase in gross merchandise value (GMV) compared to the second quarter of 2023, supported by 2 million registered sellers.
Despite concerns, TikTok remains a major player in the Filipino digital landscape, reflecting the complex balance between regulation and user engagement.
EDA Group Shares Surge Over 35% in Hong Kong Debut
EDA Group Holdings enjoyed a robust trading debut on last Tuesday as its shares surged more than 35% at the opening bell. The company, which provides comprehensive supply chain solutions for e-commerce vendors, is a key player in China's burgeoning B2C export e-commerce sector.
EDA Group offers a range of services, including cross-border logistics, overseas warehousing, and fulfillment delivery, all integrated into its proprietary EDA Cloud platform. This platform delivers a suite of digital supply management tools designed to streamline operations for e-commerce businesses.
Market research firm Frost & Sullivan projects that China's B2C export e-commerce market will grow at a compound annual growth rate (CAGR) of 13.4% from 2022 to 2027. The corresponding market for supply chain solutions featuring overseas warehouses is expected to expand at a CAGR of 14.5% over the same period, reaching $48.47 billion by 2027.
In 2022, EDA Group ranked seventh in revenue among supply chain solutions providers utilizing the overseas warehouse model in China's B2C export e-commerce market, according to Frost & Sullivan.