Malaysia's e-commerce sector has witnessed significant growth, contributing substantially to the nation's economy. In the first quarter of 2023, e-commerce income by local establishments surged by an impressive 10.4% year-on-year, reaching RM291.7 billion as reported by the Department of Statistics Malaysia (DOSM) in its Usage of ICT and E-Commerce by Establishment 2022 release. Moreover, e- commerce has also contributed to the increase in Malaysian Gross Domestic Product, from 11.6% in 2020 to 13.0% in 2021.
But the e-commerce experience is no longer just about bringing the best deals to the right audiences. Today's consumers seek to be delighted online, not just sold to. There is a fundamental shift in consumer-brand interactions, and consumers now seek engaging, exciting, educational, and entertaining experiences with brands. Shoppertainment has emerged as the game-changer – a content-driven commerce approach that entertains and educates while integrating content and community to create immersive shopping experiences.
Through TikTok Shop, we aim to deliver Shoppertainment experiences that not only meet consumer desire but also deliver positive results for businesses. Because TikTok Shop is able to connect businesses of all sizes with consumers and the wider TikTok community, it significantly enables small and medium enterprises (SMEs)* to create a holistic and seamless e-commerce experience and make real connections with new audiences, allowing them to reach a broader market and expand from offline to online.
Leveling the Playing Field for Malaysian SMEs
We have found that SMEs often find it challenging to compete with established brands in traditional retail spaces. Through Shoppertainment, we aim to empower SMEs to grow further and contribute to the local economy by providing them with a digital storefront to showcase their products and reach a nationwide audience.
In Malaysia, over 1 million sellers, 98% of whom are SMEs, use TikTok Shop to grow and thrive. These SMEs have harnessed the power of Shoppertainment to grow their brand and customer base by incorporating digital strategies from TikTok Shop to extend their reach and engage with a broader audience beyond their offline stores.
Enabling Malaysian SME Growth
TikTok Shop has been instrumental in transforming local brick-and-mortar businesses into hybrid models that incorporate online sales. This can be seen through the success of local SMEs on TikTok Shop:
Mykutsu, which started by producing shoes, has become a thriving shop that provides employment opportunities for their community. Mykutsu witnessed a remarkable 124% growth in revenue within one month.
Masdora, a jewellery brand, successfully collaborated with creators and achieved remarkable outcomes. Masdora has earned numerous awards including the Top Fashion Seller in 12.12 Year End Carnival 2022, the Top 2 Fashion Seller in 9.9 Shopping Fiesta 2023, the Top Fashion Accessories Seller in 9.9 Shopping Fiesta 2023, and the Best Rising Star for Fashion Category at TikTok Shop Summit 2023, reinforcing the notion TikTok Shop helps MSMEs achieve targets and milestones.
Suzara Shop, a local shop for dodol and serunding, achieved six-figure sales within a month, with video content and TikTok LIVE session as the main tactics.
Building a Healthy and Inclusive E-commerce Ecosystem
As we continue our efforts to enable SMEs to enjoy greater opportunities to build and expand locally, we are mindful of the challenges that arise from creating a safe and positive shopping experience.
One of our top priorities is to foster a trustworthy e-commerce environment. To achieve this, we have established robust policies and guidelines that all our sellers must adhere to. These measures ensure that the products and services offered on TikTok Shop meet our high standards of quality and safety, providing our users with peace of mind while making their purchases and enabling sellers to maintain control over their brand, including pricing, in the dynamic world of e-commerce.
We are also dedicated to maintaining open channels of communication with our community. We actively encourage users to share their feedback and resolve any problems they may have. By doing so, we stay connected with our users' needs and aspirations, continuously refining our platform to exceed their expectations.
As we navigate this ever-evolving landscape, we are committed to contributing to a healthy and inclusive e-commerce system. We are constantly learning, iterating, and adapting to meet the needs of our social commerce shoppers and supporting SMEs on TikTok Shop. We also work with logistics and courier partners in Malaysia to provide a positive shopping environment and a shopping experience that consumers can have confidence in.
Through the right tools, resources, and partnerships, we strive to foster meaningful collaborations within our diverse community, where creativity and content converge seamlessly with commerce, with the aim to help Malaysia achieve its goal of an inclusive digital economy for all.
About Nur Azre Abdul Aziz
Nur Azre is the Acquisition & Partnerships Lead at TikTok Shop Malaysia. In her role, she leads a team that fosters strong and sustainable partnership programs with government agencies, trade partners, and community leaders to deliver SME empowerment stimulus campaigns that aim to boost the local economy and expand the visibility of local products at TikTok Shop. To date, her team has delivered more than 400 offline and online activations and engaged more than 50,000 sellers. In 2019, she was awarded Top Female Entrepreneur by Total Energies for a social impact project that aimed to upskill underprivileged youth.
*SMEs are defined by the Malaysian government as having a sales turnover of less than RM300,000 or less than 5 employees.