THE WHAT? Within a year, TikTok experienced a sevenfold increase in sales in Southeast Asia, drawing in a young audience with its blend of shopping and entertainment functionalities. The platform, a subsidiary of the Chinese firm ByteDance, now contends with the reigning e-commerce leaders in the area: Singapore’s Shopee, Alibaba-supported Lazada, and Indonesia’s Tokopedia.

THE DETAILS This rapid growth in sales within Southeast Asia has raised eyebrows among regulatory agencies, primarily due to the potential threats it poses to native businesses. For instance, to shield its local industries, Indonesia is considering limiting international product sales on digital channels. Meanwhile, in Vietnam, the platform was investigated by concerns about harmful content and its alignment with national e-commerce regulations.

THE WHY? Presently, there’s growing scepticism regarding the continuity of the generous promotions and incentives offered by TikTok Shop. This scepticism stems from claims by some merchants who’ve observed a decline in promotional campaigns.