Chinese Firms Rush Into Tiktoks Crossborder Ecommerce Surge

TikTok's global popularity attracts players like New Oriental and Luo Yonghao. Cross-border e-commerce businesses can capitalize on this traffic surge by focusing on clear market targeting, high-quality content creation, strategic KOL collaborations, and data-driven optimization. While significant opportunities exist, challenges are also present. Businesses must adapt to the platform's unique characteristics and navigate the complexities of international markets to achieve sustainable success. This involves understanding local preferences, adhering to regulations, and building trust with global consumers. Success requires a proactive and adaptable approach.
Chinese Firms Rush Into Tiktoks Crossborder Ecommerce Surge

The commercial potential of TikTok's international platform continues to attract heavyweight players. New Oriental's "Oriental Selection" is reportedly recruiting TikTok hosts to expand into cross-border e-commerce livestreaming, while Luo Yonghao's "Friends Trading" has already established overseas operations and an e-commerce academy to accelerate talent development within TikTok's ecosystem. The collective influx of domestic e-commerce giants undoubtedly validates TikTok's enormous potential in global markets.

TikTok's Global Gold Rush: A Feast of Brands and Traffic

TikTok's rise was no accident. It precisely captured Generation Z's strong demand for self-expression and interactive experiences. The short-video format and powerful social attributes quickly established TikTok as a hub for trend culture, enabling rapid expansion through word-of-mouth effects. Compared to traditional digital media, TikTok's user base skews younger. A Deloitte global survey revealed that 52% of TikTok's e-commerce users are aged 18-35, significantly higher than the global e-commerce average.

More importantly, TikTok is breaking the monopoly of traditional giants like Facebook and Google in digital media, becoming a crucial channel for brands to build online influence. Reports indicate TikTok's CPM (cost per thousand impressions) and CPC (cost per click) are lower than traditional platforms, meaning brands can reach more potential customers at lower costs.

Case Studies: Successful TikTok Marketing Strategies

Before examining TikTok's development trends, let's analyze several successful cases that offer valuable insights.

Y.O.U: Brand Challenge Takes Southeast Asia by Storm

During the 2021 Ramadan season, Southeast Asian beauty brand Y.O.U launched the #WouldYouLoveYou challenge on TikTok, promoting values of female independence and confidence. Through collaborations with influencers, custom stickers, and TopView ads, the campaign achieved 5.5 billion views and 300,000 interactions, significantly boosting brand awareness and reputation.

realme: Localized Content Marketing for Precision Targeting

Smartphone brand realme, recently ranked among Kantar BrandZ's Top 50 Chinese Global Brands, succeeded through precise market insights and localized content. Analyzing audience media habits, realme chose TikTok as its primary marketing platform, employing feed ads, influencer collaborations, brand challenges, official account operations, and e-commerce livestreams to enhance visibility, user engagement, and sales. The brand also highlighted product performance through gaming content, streaming the realme league tournament on TikTok Malaysia, achieving over 100,000 organic views and strengthening user loyalty.

HEBE Beauty: An All-in TikTok Strategy

Another Southeast Asian beauty brand, HEBE Beauty, adopted an "All-in TikTok" approach. Their e-commerce director noted that product trends on TikTok have become key references for distributors, while content effectively guides purchasing decisions, boosting offline sales. By forming a dedicated TikTok content team to consistently produce trending content, HEBE Beauty achieved remarkable results.

Emerging Trends in Overseas Livestream E-commerce

These cases demonstrate TikTok's growing importance for cross-border sellers. What emerging trends should brands watch in TikTok livestream commerce?

1. Two-Way Interaction Enhances User Engagement

Livestreaming's greatest strength lies in its interactivity and authenticity. Real-time engagement helps users quickly connect with brands and products, while the immersive atmosphere drives purchases. A UK Ofcom study found British teens spend 57 minutes daily on TikTok—exceeding global averages—making livestreams particularly effective for building trust and bridging geographical gaps.

2. KOL-Driven Traffic for Product Promotion

Key Opinion Leaders (KOLs) play an indispensable role in amplifying reach. While leveraging influencers provides short-term gains, long-term success requires mastering content creation and understanding TikTok's unique algorithm, which prioritizes video quality over follower count. New videos typically reach 100-300 users initially; strong completion and interaction rates trigger broader distribution. Though cultivating an organic following takes time, the gradual decline of mega-influencers (those with millions of followers) makes in-house content capabilities increasingly vital.

3. Crowded Traditional Markets Drive Innovation

As traditional cross-border e-commerce grows saturated, social media offers alternative pathways. While platforms like Amazon, Shopee, and Lazada boast extensive inventories and high conversion rates, they lack native traffic advantages. Conversely, TikTok, YouTube, Instagram, and Facebook provide massive traffic and monetization potential. Though entertainment-focused users yield lower direct conversions, integrating these platforms with traditional e-commerce maximizes efficiency. TikTok's rapid growth, in particular, creates an expansive untapped traffic pool.

TikTok Shop: New Opportunities for Cross-Border Commerce

From initially launching in Indonesia and the UK, TikTok Shop has expanded to seven countries including Thailand, Malaysia, Vietnam, and Singapore within a year, ushering in a "one-store-sells-globally" era. Though the U.S. market remains in limited beta testing with a "semi-closed-loop" model, industry sources suggest full integration may arrive by mid-2024, potentially operating parallel models.

As one of the world's most popular content platforms, TikTok offers unparalleled advantages: massive traffic, vibrant interest-based communities, and integrated e-commerce channels. How can sellers capitalize on this growth phase?

Strategies for Harnessing TikTok's Traffic Boom

1. Define Target Markets and User Profiles

Sellers must clearly identify their target demographics and regional preferences. Southeast Asian consumers prioritize affordability in beauty and fashion, while Western markets value quality and individuality in home goods and sports equipment. Tailoring strategies to these nuances is critical.

2. Create High-Quality, Engaging Content

Content reigns supreme on TikTok. Sellers should produce diverse, valuable formats—product demos, tutorials, lifestyle showcases, or humor—that resonate with target audiences. Production quality (visuals, audio, editing) equally impacts credibility and watchability.

3. Partner with Relevant KOLs

Collaborating with aligned influencers accelerates reach. Evaluate potential partners by follower authenticity, engagement rates, content quality, and reputation. Campaigns—product reviews, livestream sales, or branded promotions—should feel genuine and compelling.

4. Leverage TikTok Shop for Direct Sales

TikTok Shop enables seamless in-app transactions. Optimize product pages with clear descriptions, high-resolution media, and frictionless checkout. Prompt customer service further enhances conversion rates.

5. Analyze Data for Continuous Optimization

Regularly assess metrics—views, engagement, follower growth, sales—to identify winning content and areas for improvement. For example, high-view, low-conversion videos may indicate unclear pricing or descriptions needing adjustment.

The Future of TikTok: Balancing Promise and Challenges

TikTok's explosive growth threatens to reshape the digital media landscape. Yet sellers face obstacles: intensifying competition, regulatory uncertainties, and cultural adaptation. Success demands deep platform knowledge, agile strategies, and relentless innovation. As industry titans like New Oriental and Luo Yonghao enter the fray, TikTok's evolution—both as a traffic juggernaut and brand-building vehicle—will undoubtedly shape global e-commerce for years to come.