The e-commerce market in Indonesia is undergoing a transformation driven by social media. TikTok Shop, with its unique short-video and live-streaming sales model, has not only reshaped the local e-commerce landscape but also achieved remarkable growth in the fashion category. This article delves into TikTok Shop's growth strategies in Indonesia and Southeast Asia, as well as its impact on the regional e-commerce ecosystem.
Data Insights: TikTok Shop's Meteoric Rise in Southeast Asia
In 2025, TikTok Shop experienced explosive growth across Southeast Asia, with key metrics showing significant improvements:
- Gross Merchandise Value (GMV): Annual GMV more than doubled compared to 2024, exceeding 100% growth.
- Daily Average GMV: Increased by 90% year-over-year, demonstrating strong operational capabilities.
- Peak Single-Day Sales: Year-end peak sales nearly doubled compared to 2024, highlighting its promotional prowess.
- Key Campaign Performance: During major sales events like 6·6, Singles' Day, and 12·12, GMV grew by 123%, 230%, and 270% respectively. Short-video-driven sales during 12·12 surged by 257%.
These figures clearly position TikTok Shop as a formidable force in Southeast Asia's e-commerce market.
Fashion Breakthrough in Indonesia: Case Studies and Strategies
TikTok Shop's success in Indonesia is particularly evident in the fashion sector. Its "Fashion Playground" offline event, co-hosted with Tokopedia, successfully bridged online content with offline experiences, driving significant sales growth for brands.
- Sales Growth: Participating brands saw an average GMV increase of 86.62%.
- Event Format: Combined fashion shows, brand markets, live-streaming displays, and creator networking to boost engagement.
- Local Brand Participation: Homegrown brands like SAKURA BARU and JINISO Jeans achieved up to 30x growth in live-stream sales, showcasing the model's effectiveness.
This success stems from four key strategies:
- Localized Operations: Tailoring products and services to Indonesian cultural preferences.
- Content-Driven Engagement: Leveraging short videos and live streams to create compelling narratives.
- Omnichannel Integration: Blending offline activations with digital touchpoints.
- KOL Collaborations: Partnering with local influencers to amplify reach.
Policy Adjustments and Seller Incentives
In February 2026, TikTok Shop and Tokopedia revised commission structures to further incentivize sellers:
- Lower rates for advertised products.
- Tiered discounts based on advertising spend (1%+ or 3%+ of GMV).
- Reduced commissions for live-stream sales.
These changes aim to boost advertising investment and live commerce adoption.
Security Measures and Compliance
Starting February 5, 2026, select Indonesian sellers must enable two-factor authentication (2FA) to mitigate security risks. Non-compliant accounts may face withdrawal restrictions.
Market Dynamics: TikTok Shop vs. Shopee
The competitive landscape is shifting:
- TikTok Shop's parcel volume through J&T Express surpassed Shopee's SPX by 18% in 2025.
- While Shopee maintains higher GMV, the gap is narrowing rapidly.
- Competition now focuses on logistics efficiency rather than just pricing.
Industry projections suggest TikTok Shop could match or exceed Shopee's parcel volume by 2026.
Vietnam's Rapid Adoption
In Vietnam, TikTok Shop achieved:
- 69% revenue growth, capturing 41% market share.
- 96% increase in merchant registrations.
- Higher average order values.
However, new e-commerce tax regulations introduced in July 2025 have increased compliance costs.
Japan: A Nascent Market
TikTok Shop's Japanese operations remain modest ($50M-$150M annual GMV) due to:
- Dominance of Amazon and Rakuten.
- Consumer preference for quality over impulse buying.
- Underdeveloped live-commerce culture.
Beauty and personal care (a $24B global category) has emerged as the primary growth avenue, with localization being critical.
Future Outlook
For 2026, TikTok Shop Southeast Asia prioritizes:
- Category expansion.
- Streamlined merchant onboarding.
- Logistics upgrades.
- Enhanced returns processes.
These initiatives aim to foster sustainable ecosystem growth while delivering value to users and businesses alike.