Local brands are the early movers on TikTok Shop in Indonesia

TikTok’s Social Platform Commerce channel, TikTok Shop, is gaining widespread adoption across Southeast Asia. Nowhere is this more true than in Indonesia’s online beauty category where local and global brands are competing intensely for consumers’ attention and wallet share.

Our October 2022 analysis of 150 beauty brands from Cube’s Indonesia brand panel reveals new insights about how this new e-commerce channel is developing:

  • Local brands are adopting TikTok Shop much faster than their global peers, with 87% of surveyed local brands selling through the channel versus just 43% of global brands

  • This local-first adoption pattern of TikTok Shop mirrors e-commerce more broadly; our research indicates that Southeast Asia’s emerging brands tend to be present on more e-commerce channels than their global counterparts; unlike global brands that rely heavily on offline distribution and often only have a small team dedicated to online channels, emerging D2C brands are often digital-first with little to no offline presence

  • The disparity in channel adoption could impact the online market share mix of beauty going forward, as local brands’ more nimble and experimental channel management strategy allows them to improve customer experience faster than their global peers; the average number of TikTok followers of top 25 local brands on the platform (~700,000) now exceeds the same metric for global peers (~400,000), indicating that local brands are already reaching significant scale

Coming soon: MeterCubeTM for TikTok 
We are launching our first MeterCubeTM market data set for TikTok and TikTok Shop, covering all major consumption categories for Singapore, Malaysia, Thailand, Vietnam, Indonesia, and the Philippines, very soon. Please get in touch on info@cube.asia if you are interested in learning more.

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