TikTok in government tie-up to boost SME sales

267 0 0

The e-commerce platform TikTok Shop on Wednesday signed a memorandum of understanding (MoU) with the Department of Business Development to drive contributions from small and medium-sized enterprises (SMEs) to 40% of GDP by 2027, rising from 35%.

“We see the potential of TikTok users in Thailand, with 43 million users and the majority spending time on the platform,” said Napintorn Srisunpang, deputy commerce minister.

Thais spend an average of eight hours per day on the internet and the country has 63 million people online, representing 88% of the population.

Some 67% of internet users purchase products online, based on recent surveys.

The MoU focuses on three key areas: supporting local businesses to seize opportunities in the digital economy, expanding access to learning and self-development on TikTok Shop, and building a community to foster and develop a smart economy.

The company aims to train and enhance digital marketing skills for roughly 7,000 Thai SMEs by 2024 through hybrid workshops specially tailored for them.

TikTok registered TikTok Shop Co in Thailand after previously registering in Singapore.

The 2023 MSME Situation Report by the Office of Small and Medium Enterprises Promotion found SMEs contribute more than 6.1 trillion baht, roughly 35.2% of Thailand’s GDP.

This underscores their vital role in the country, which is transitioning to a digital economy, said the office.

As the market shifts towards live commerce and the shoppertainment trend, TikTok Shop provides a channel for learning about online marketing. Through the TikTok Shop Academy, businesses can access a wealth of knowledge and techniques, offering significant opportunities for growth and development.

According to “The TikTok Effect: Accelerating Southeast Asia’s Businesses, Education, and Community” report, SMEs in Southeast Asia have increased their income by almost 50% from selling products and services on TikTok. This represents a significant opportunity for Thai SMEs to accelerate their learning and acquire new skills, such as live streaming on the TikTok Shop platform.

TikTok Live data from Thailand reveals that in 2023, there were 700,000 Thai creators live streaming on the platform each month.