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Hottest Marketing Strategy in Indonesia: Shopee and TikTok Live Shopping

Live Shopping Marekting in Indonesia
Table of Contents

The shift in consumer behavior toward online shopping has long altered the pattern of business owners as well. Yet, there are still many cases of dissatisfaction coming from the customers’ end regarding quality, mainly caused by the uncertainty of the truth delivered at the online display.

To address this problem, live shopping is the perfect solution that allows the customers to not only interact directly with the sellers, but also witness the product in real-time. It became rapidly popular in Indonesia after being popularized by TikTok Live which connects directly to the store.

After seeing the success of live TikTok shop, other e-commerce platforms started to add similar feature. After all, there had been a time when TikTok, a media platform that focuses on entertainment, almost rivaled actual e-commerce platforms in terms of popularity among Indonesian users. We’ll see why Indonesian incorporates live shopping into their life, while also comparing two of the biggest live shopping platforms in Indonesia as of now; TikTok Live and Shopee Live.

 

The Hero of Small Business Owner

Live streaming marketing has been a mainstream strategy that is easily doable for even small business owners. It requires minimum cost, and absolutely possible to be done anywhere and anytime. It also allows offline stores to be able to reach more people while maintaining some of the traditional shopping experience for the customers.

Aside from the high interactiveness, business owners started live streaming in order to attract more buyers by utilizing live-exclusive and limited discounts. According to the latest Ipsos survey regarding the live shopping trend, this marketing strategy is proven to be highly successful as 73% of small business owners admitted to experiencing an increase in profits after doing live streaming.

In addition to the high conversion rate, live streaming adds another layer of trust for the customers, especially for the small businesses that still lack awareness. Business owners will be able to showcase the product features properly even through online media, even going as far as answering real-time questions with a review from the streamer.

By seeing the products in real-time, customers will understand the quality of the products better, as they haven’t gone through the meticulous process of photo editing and deliberate photo-taking angle. It has come to the point where customers treat browsing through the numerous live streaming as going to an actual mall. Some even compare it to a traditional market due to the excessive talking and aggressive selling. 

 

Shopee Live vs TikTok Live

As of now, Indonesia has four notable e-commerce platforms that offer the live streaming feature, that is Shopee Live, TikTok Live, LazLive, and Tokopedia Play. However, we’ll focus more on the first two platforms, as it is noted as the most popular live shopping platforms in Indonesia, according to Ipsos. 

Deciding where to start your live streaming marketing is almost as important as doing the live streaming itself. For starters, both Shopee and TikTok are inherently different platforms, yet offer the live shopping experience many Indonesians seek in their current customer behavior.

For instance, Shopee is an e-commerce platform that actually focuses on selling and buying. People go to the platform specifically to buy things, so people who open the app, at the very least, have intended to spend money. They don’t tap into a Shopee Live to browse, but to actually make transactions while taking the live-exclusive discounts. It’s no surprise that brands that have their live shopping at Shopee will have a higher conversion rate.

Shopee also starts giving out rewards for the viewers, such as coins in exchange for cash or additional coupons. This is a great incentive for more people to join the Shopee livestream, even for just a few seconds. But in the world of business, that very few seconds are already enough to change a passerby into a potential customer. For example, a user planned to just claim the coins/vouchers on a live stream, yet they feel intrigued by the product currently showcased. Moreover, the sense of urgency incited by the limited discounts can also prompt them to make an unplanned transaction right away.

On the other hand, TikTok is an entertainment platform that specializes in video content. People who use it to pass the time might come across random live streams, including the live shopping ones. Chances are they will skip right through the livestream, because they are not actually in the mood to do some spending. The temporary ban on TikTok Shop also managed to knock the shopping experience down a peg, as people started to get back to conventional e-commerce.

This is why TikTok Live needs to be even more energetic than Shopee Live, since TikTok Live has far less time to get the audience hooked and actually pay attention to the product. Be it through eye-catching setups, interesting skits, or even just being generally loud.

However, as a social media platform, TikTok has a massive audience. It serves as a great opportunity to spread brand awareness due to the fact that it’s more likely for a new market to come across your live stream by chance (thank you TikTok algorithm).

 

Choose Your Online Shopping Platform

Now here comes the most anticipated part. How do you, as a business owner, decide on which platforms to use? Here are a few tips from us:

 

  • Choose your biggest market

If you already have stable followers before venturing into the world of live shopping, it’s best to stick to that platform for first-timers. Most of the algorithms side with the one with a bigger audience, after all, so it will be an easier exposure gain.

 

  • Decide the livestream goal

Obviously, a live streaming marketing goal would be conversion, duh. But what’s your second objective? If you’re planning for more long-term awareness and community building, TikTok is the way to go. That way, you can do content creation aside from the live streaming.

But if you’re planning to build credibility, go to Shopee. People will be more likely to buy, and that means more testimonials and transaction proof for your store. This will convince future customers to label your store as trustworthy and scam-free.

 

  • Measure your resources

As said before, TikTok Live can play in the long run, especially for a new account. If you have the time and resources to build up your platform, TikTok won’t disappoint you in terms of awareness and conversion.

 

Try and See the Magic of Live Shopping Yourself

In short, the Indonesian audience loves live shopping, and it especially benefits small business owners. If you’re one of them, make sure to try it yourself. Keep in mind though, live streaming marketing needs more support from the other aspects of digital marketing to keep your brand afloat. For that other digital marketing stuff, Avond Studio is the trusty consultant you need!

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