Sick of mistakenly buying fake products online? TikTok Shop has a solution for M’sians.
[This is a sponsored article with TikTok.]
Raise your hand if you’ve ever mistakenly bought a counterfeit product online from an ecommerce seller posing as a genuine brand. (I know I have.)
This isn’t surprising, as 8,162 cases of ecommerce fraud with losses amounting to RM57.73 million have been reported nationwide in October 2021 alone.
In turn, this can negatively affect a consumer’s faith towards online shopping, hindering the growth of reputable online merchants.
To combat this, ecommerce platforms are taking measures to reduce the trafficking and sale of counterfeit goods on online marketplaces.
One example can be seen through TikTok Shop’s newly launched TikTok Shop Mall.
100% authenticity guaranteed
Introduced in late 2023, TikTok Shop Mall works as a by-invite-only channel for sellers.
This means that as a consumer, you’ll exclusively find products sold from a brand’s flagship store and authorised online retail outlets, making the virtual shopping sphere more trustworthy.
You’ll be able to find this “Mall” feature within the TikTok Shop tab. And you’ll recognise a seller’s authenticity through its distinguished Mall Label provided by the platform.
Brands with this label will also be featured more visibly in your recommendations.
To date, TikTok Shop Mall is promising users access to 600 local and international brands that can guarantee 100% authentic and original products, free 15-day returns, and free shipping.
Scrolling through TikTok Shop Mall, some local brands that are already featured here include Elgini (sportswear), Dessini (cookware), Habib Jewels (jewellery), and Mydin (grocery items). Meanwhile, well-known international names like Maybelline, Pandora, Skechers, and JBL are also available on TikTok Shop Mall.
More than a feature that can give users a positive shopping experience, this effort by TikTok Shop can also enhance the growth and support for local SMEs on the platform.
“The benefits go both ways: sellers now have an added stamp of authenticity on their products, and buyers can now easily identify and shop from their favourite brands with greater peace of mind,” shared Nur Azre Abdul Aziz, Acquisition Lead at TikTok Shop Malaysia in a press release.
Launched in April last year, TikTok Shop Malaysia became a local ecommerce powerhouse in 2023, sharing with Vulcan Post that it saw a 78% increase in SME sellers onboarded between January to June 2023 alone.
A report by a US-based consultancy firm Momentum Works highlighted that TikTok Shop is expected to triple its ecommerce market share in SEA from 4.4% in 2022 to 13.2% in 2023.
Hence, it would be interesting to see what other moves the platform continues to make to leverage its shoppertainment capabilities, boosting SME visibility online in years to come.
TikTok is available for free on the App Store and Google Play Store.
Also Read: How M’sian gifting startup Kravve has pivoted to help corporates achieve their ESG goals
Featured Image Credit: Vulcan Post
What M’sian SMEs should know about TikTok Shop, which saw a 78% seller increase in 2023
[This is a sponsored article with TikTok.]
While TikTok is known for its short, entertaining videos, the platform started dipping its toes into ecommerce in late 2021.
In mid-2022, TikTok Shop was rolled out to SEA.
By Q2 2023, a regional survey conducted by TikTok revealed that the small businesses polled reported a nearly 50% increase in revenues by utilising the platform to sell their products.
Additionally, over 80% of creators polled experienced boosted incomes through avenues such as TikTok LIVE and brand sponsorships.
Locally, TikTok Shop Malaysia told Vulcan Post that it saw a 78% increase in SME sellers onboarded between January to June 2023, which also marked its one-year anniversary.
So, what contributed to TikTok Shop’s explosive growth, and how can other Malaysian SMEs leverage the platform’s success?
A seamless experience from discovery to purchase
Since expanding to Malaysia, TikTok Shop has been offering interactive and seamless ecommerce experiences for sellers and shoppers alike.
For one, discoverability for new products is easy on TikTok, meaning that brands can have high visibility.
TikTok users can stumble upon a short video showcasing a cool product, and directly purchase the item within the app in a matter of seconds.
One of our colleagues is a prime example of this, as he had impulsively purchased a sunset light projector which he discovered on his For You page.
In conjunction with this discoverability, LIVE shopping has been a vital catalyst for TikTok Shop’s success. It benefits all parties involved, including SMEs selling on TikTok Shop, livestream hosts, and shoppers.
As seen through these sellers’ experiences on TikTok Shop, they gained rather large followings and saw increased sales by engaging with their shoppers over livestreams.
Likewise, shoppers gain confidence in purchasing the products from creators they’re interacting with.
“Not only can they observe the products being sold in real time, but shoppers can also relay their queries about the products and services directly to the seller,” said Wilson Leong, TikTok Shop Malaysia’s FMCG (fast-moving consumer goods) category director.
“This creates a genuine connection between buyer and seller that cannot be replicated via chatbots or messages that could take a longer period of time to conclude [the sale].”
Motivating sellers with targets and rewards
Like most ecommerce platforms that run promotional campaigns during festive seasons, TikTok Shop is seen doing the same, with added incentives for merchants.
“TikTok Shop has special missions that reward sellers based on their activities on the platforms and growth on TikTok Shop,” Wilson explained. “By completing certain tasks, vouchers are allocated to their store to gain more sales and orders.”
It creates a win-win situation, as shoppers will be rewarded with attractive deals on TikTok Shop, while sellers are rewarded for hitting targets during these campaigns.
Supporting Malaysian SMEs with growth training
It’s worth noting that these incentive programmes aren’t unique to TikTok Shop, as other ecommerce platforms have their own ways to incentivise merchants to perform well too.
But what makes TikTok Shop stand out is the learning materials creators can benefit from through TikTok Shop Academy.
It contains an abundance of guides and courses educating sellers on how they can boost sales and increase brand awareness as an ecommerce business.
Through such guidance, TikTok Shop is building an ecosystem to enable SMEs, especially budding entrepreneurs, to harness their online selling potential and growth.
TikTok Shop has lowered the barrier to entry, encouraging new brands to use the platform as a launchpad for their business.
Leveraging the shoppertainment ecosystem
Ultimately, the success businesses can achieve from selling on TikTok Shop still hinges on a brand’s proactiveness to use the tools provided at their disposal.
One brand that has reaped the benefits of TikTok Shop Malaysia’s tools is COSRX Malaysia (COSRX MY).
For those unaware, COSRX is a Korean skincare brand creating products that use gentle ingredients to address various skin concerns.
The team shared that they’d often participate in the platform’s promotional campaigns, and would maximise the various campaign tools offered.
Examples include the Free Shipping Program, CoFund Voucher, Product Discount, Voucher, and Buy More Save More.
As a result, COSRX MY reportedly achieved a GMV growth of 135% during TikTok Shop’s My Brand Day between April 25-30. It’s an increase from COSRX MY’s revenue during the platform’s Raya & Ramadan Mega campaign.
The brand also placed third amongst other beauty brands on TikTok Shop Malaysia for having one of the highest GMV.
Placing on TikTok Shop’s leaderboards can lead to better discoverability on users’ For You page, which broadens a brand’s chances of attaining more buyers.
Ranking higher on leaderboards is often a result of creators consistently livestreaming for a few hours daily and posting short videos frequently.
For COSRX MY, they dedicated a minimum of 14 to 16 hours to livestreaming daily, and 18 to 20 hours during larger campaigns.
Posting five videos per week was another contributor, as the brand was providing a steady flow of content for audiences to maintain interest and visibility.
Making use of affiliate creators also helped COSRX MY promote their skincare products on TikTok.
“This strategy proved the success in utilising the reach and influence of affiliate creators to promote their products and boost COSRX MY’s revenue,” said Hyojeong KO, COSRX MY’s Assistant E-commerce Manager.
Perhaps SMEs looking to become success stories on TikTok Shop Malaysia can emulate the steps COSRX MY has taken to achieve theirs.
With more festive seasons coming up this year including the coveted 11.11 shopping day, SMEs could take advantage of the shoppertainment tools TikTok Shop will continue to offer.
- Register your business on TikTok Shop here.
- Read other ecommerce-related articles we’ve written here.
Also Read: Tried-and-tested saving hacks that have worked for these 5 M’sian finance bloggers
Featured Image Credit: COSRX Malaysia / Fancy items / BLS Home Deco
From livestreaming on TikTok for fun to full-time job, here are 2 M’sian creators who did it
[This is a sponsored article with TikTok.]
We know and enjoy using TikTok for its 15-second short videos. Since its launch in 2016 though, the app has grown to be more than just pure entertainment.
Recently, we wrote about TikTok Shop, the brand’s livestream shopping platform where online sellers can leverage TikTok’s existing traffic to increase their visibility and sales greatly.
But that’s not the only way TikTok is helping users grow their income.
TikTok LIVE (LIVE), the app’s livestreaming service, is where top creators can make up to RM20,000 on average per month, or RM60,000 on good months, for consistently livestreaming for up to 2.8 hours daily.
This data was shared by Melissa Yuen, TikTok’s Country Manager for Malaysia, Singapore, Indonesia, and Taiwan, in an interview with Vulcan Post.
TikTok declined to show us a reference for these figures. However, an article published by SEO Design Chicago (a US-based digital agency) stated that TikTokers with a minimum of one million followers can earn an average of US$5,000 per month. Converting those numbers to Ringgit, they add up.
Instead of making their income through brand partnerships or advertising deals, LIVE hosts earn through TikTok’s LIVE Gifts, and Diamonds.
Cashing in on tokens of appreciation
Similar to how you’d tip a good busker performing at a mall, LIVE Gifts is TikTok’s way of letting viewers show their appreciation for a host’s content.
Viewers can send as many Gifts as they please during the host’s livestream duration. In return, TikTok’s “Gifter Level Up” programme rewards generous Gifters with perks such as a livestream shoutout by the host.
LIVE Gifts are purchased using Coins (TikTok’s virtual currency), which are bought with real money. At the time of writing, a single Coin costs RM0.05, but this fluctuates, as it’s tied to the US dollar. LIVE Gifts can cost anywhere from 1 Coin up to 28,888 Coins.
Once a host receives enough Gifts, they can collect Diamonds to convert into real money to transfer to their bank accounts. Diamonds are awarded by TikTok to recognise the popularity of creators and their content.
The conversion rate of Diamonds is based on the market’s exchange rate, where 200 Diamonds are worth US$1 (around RM4). If a host earns 100,000 Diamonds for a livestream session, that’s US$500 (around RM2,215).
Some LIVE hosts have become so successful that they’ve left their jobs, with others even setting up a TikTok LIVE agency to build up more creators.
From life struggles to livestreaming success
Zuhamizam Mohd Azami, who goes by the stage name, “Papi” is a Malaysian LIVE host who founded Sakapapi Empire Agency (Sakapapi), in November 2021.
For context, Sakapapi is a TikTok Agency, which is the platform’s way of working with hosts, and supporting their livestreaming careers.
Papi began his TikTok LIVE journey to combat his mental health issues, and as a way to kill time amidst a job loss during the pandemic. By streaming for an average of three hours consistently during his downtime, coupled with the support from his followers, Papi grew to become a top-ranking host in Malaysia.
Did you know: Top-ranking hosts are chosen by TikTok each week, based on the number of Diamonds they receive.
Papi was later offered another job, but took a leap of faith to pursue TikTok livestreaming as his full-time career.
“Today, I can happily say that this is the best decision in my life,” he mused. With TikTok Agency’s support in guiding Sakapapi’s growth, the agency now houses over 360 Malaysian hosts.
One LIVE host working with Sakapapi is Erina (baby_erinaa), who started livestreaming in mid-2021 while struggling with insomnia.
Erina consistently streamed lifestyle, “day in the life” based content for an average of six hours daily while up at night, allowing her account to grow big enough for her to be scouted by Sakapapi.
Of course, Erina did face some pushback from her family in pursuing this career path, but her persistence and passion managed to convince them otherwise.
Thus, what began as a livestreaming hobby became her full-time job.
According to TikTok’s team, LIVE creators get to withdraw all their earnings directly through the app itself. Agencies, on the other hand, are paid a commission directly from TikTok, which are calculated based on their hosts’ monthly performance.
To add, Erina and other LIVE hosts under Sakapapi receive benefits too.
For example, LIVE hosts get weekly virtual training classes to improve their content-creating skills such as idea development and video editing, all conducted by Papi.
Sakapapi also provides livestreaming equipment like ring lights and microphones to elevate their streams. In terms of monetary benefits, hosts are given physical gold bars.
Part of an ecosystem of creatives
According to Melissa, TikTok LIVE’s goal in the next six months is to cement its positioning as the “livestreaming entertainment app for all”.
Hence, TikTok wants to attract and grow existing and aspiring creators to become full-fledged hosts that make an income from livestreaming.
“We intend to achieve this by increasing our efforts in partnering with the right agencies and hosts, while also continuing to elevate TikTok LIVE’s brand image and visibility in Malaysia,” she said.
Other than being a viable career choice for creators, TikTok LIVE hosts can also help brands connect and resonate with audiences while selling on TikTok Shop.
The relevance of livestreaming can’t be dismissed as it will continue to grow, with a forecasted compound annual growth rate (CAGR) of 16.14% from 2022 to 2028.
And though there’s still the stigma that content creation jobs are “not real” and that one cannot make a living from them, platforms like TikTok LIVE and its success stories may just be catalysts for change.
As Erina pointed out, “With consistent quality content comes consistent income.”
Also Read: TikTok takes online shopping interactivity to new heights for M’sian merchants this 11.11
Featured Image Credit: TikTok LIVE hosts under the Sakapapi agency
TikTok takes online shopping interactivity to new heights for M’sian merchants this 11.11
[This is a sponsored article with TikTok.]
More than just a social media app for endless, scrolling fun, TikTok has become a worthy challenger in the ecommerce scene via TikTok Shop.
Since TikTok Shop reached Malaysian shores earlier this year, SMEs have been utilising the platform to expand their growth.
Over the 11.11 ecommerce event, TikTok Shop held its own 11.11 Mega Deals Campaign, offering a range of products from local and global sellers alike.
Free shipping vouchers, coupon giveaways, and other items from participating brands were also given out during livestream sessions.
With the help of the TikTok team, we spoke to merchants such as ZUCCA, Alha Alfa, Gaabor, and Dessini who shared their experiences of selling on the platform throughout the 11.11 campaign.
Giving local SMEs a boost
Championing “shoppertainment”, TikTok allows users to shop and be entertained simultaneously within the app itself.
The social media platform seamlessly integrates TikTok Shop with livestream videos of merchants promoting their products.
You can find these videos in the “LIVE” tab on the app, or stumble upon them on your For You page, where you can access a seller’s shop and purchase their products within TikTok itself.
For consumers, this means ease of shopping, while for sellers, it’s a model that increases their visibility greatly.
During TikTok Shop’s 11.11 Mega Deals Campaign which lasted a week, ladies’ wear brand ZUCCA saw a Gross Merchandise Value (GMV) increase of 502.37% from its 10.10 campaign.
To push live sales conversions, vouchers worth RM110K were given out, with half of them claimed.
ZUCCA also hosted a lucky draw worth RM30K to increase viewers’ watching durations, resulting in video views surging by 302.26%, and a 46.81% increase in watch time. On 11.11, the brand launched merchandise and vouchers worth RM11 to reward loyal customers.
Speaking on their experience, ZUCCA’s team believes that telling followers about how their products would benefit them instead of hard selling was a contributor to the brand’s success.
“We took the opportunity to use TikTok Shop’s livestream to do more engagement and find out what our users need, to build a stronger relationship with our customers,” ZUCCA’s team shared.
Local cosmetics brand Alha Alfa hosted lucky draws where customers only needed to purchase one item from his shop to participate. The prizes included items like an iPhone 14, a mini fridge, or a makeup storage box, to name a few.
Other than the lucky draw, Alha Alfa also held promotions with buy 1 free 1 deals, and up to 80% discounts on the store’s products. The brand also collaborated with local celebrity, Zara Zya in its promotional efforts, pulling in more traffic during the livestream.
Based on these initiatives, Alha Alfa saw an average of 2.2K views between November 8-11, while its GMV was said to grow by 3,423.38%.
Datuk Abdul Al Halim Al Fadzil, who founded the brand, shared that he appreciates the ease of operating TikTok Shop which makes it simple for merchants to appeal to audiences. He added that being able to demonstrate a product on livestreams creates excitement for customers to make purchases.
“With that, we’ve managed to gain profit and grow our business easily, as it helps us in attracting new customers apart from our existing ones,” he stated.
Gaabor, a consumer electronics brand, partnered with over 100 creators (otherwise known as hosts) from TikTok Shop Partners to conduct livestreams and post short videos which marketed the brand’s products.
Did you know: TikTok Shop Partners (TSP) hosts are service providers for TikTok Shop sellers, helping them manage content creation, shoppable livestream production, store operations, etc.
A competition was also held between the creators to see who could bring in the most GMV over a period of time.
With the help of these creators, Gaabor claimed that its GMV grew by 680%, while order sales increased by 800% from its 10.10 campaign.
Free giveaways were also presented during their livestreams. Throughout the 11.11 campaign, the brand’s total livestreams grew to 10 hours per day, with livestream views increasing by 400%.
Another cookware brand, Dessini can attest to similar success. With the help of TSP hosts, the brand attained sales of US$102.5K (RM464.3K) from livestreams, which also translated as 326% GMV growth compared to its 10.10 campaign.
Dessini’s livestream views saw a 253% growth, too, and the brand reported that its team of creators continuously streamed for 17 hours.
Studying past historical data to identify effective TSP hosts was a contributing factor which Dessini’s team believes managed to drive up their traffic.
They added, “After we joined TikTok Shop, our accumulated sales volume reached more than RM7 million, which has increased our company’s overall performance by 10%.”
Sharing their gratitude, Dessini’s team noted that TikTok Shop was able to boost them in being a “hot-selling brand” within a few months.
Shopping integrated seamlessly with content
According to TikTok Shop Malaysia’s FMCG category director Wilson Leong, the platform’s intention is to shape the ecommerce space in Malaysia, maximising local business owners’ potential in shoppertainment.
Being an avid TikTok lurker myself (where I exclusively watch content and tag my friends, but don’t post anything), it’s commendable to see the platform expand outside its usual short video content.
With more festive seasons around the corner, the platform hopes to see more SME owners and online merchants come on board to take advantage of its shoppertainment capabilities here.
TikTok is available for free on the App Store, Google Play Store, and Huawei AppGallery.
- Register your business on TikTok Shop here.
- Read other ecommerce-related articles we’ve written here.
Also Read: To help SMEs expand in M’sia, Lalamove offers affordable, on-demand interstate deliveries
Featured Image Credit: Vulcan Post
