By Arthur Altounian, Vice President, Client Strategy & Growth APAC, Goat
Social commerce is booming in SEA, with influencers leading the way to a new era of advertising where relevance and authenticity are increasingly powering brand growth.
As a global trend, social commerce has steadily been on the rise for some years now. From early players in the space like Facebook who allowed users to buy and sell on the platform as early as 2014, to newer entrants like TikTok, whose social commerce platform TikTok Shop has been making waves in Southeast Asia over the last few years, leading to an official launch in the US this year.
Aside from technology and regulatory changes, the biggest difference between social commerce then and now has been the increasingly pivotal role of influencers – and the astronomical rise of TikTok Shop in Southeast Asia is proof of this. The influencer-led social commerce platform achieved a US$4.4 billion GMV in the region last year, with its projected market share expected to reach 13.2% by this year. This success has put the platform in the same tier as regional stalwarts like Lazada and Tokopedia in less than three years since its debut.
To understand this success is to understand the growing role and impact of influencers in the region, as well as the expansion of social commerce from simply enabling buying and selling on social media platforms to providing ‘shoppertainment’, where influencer-led live selling and viral products reign king.
The Role of Influencers in TikTok Shop’ Success
Southeast Asia, a region with one of the highest social media penetration rates worldwide, has a booming internet internet economy that is expected to be worth USD330 billion in 2025. Influencer marketing is also thriving in the region, and is estimated to be worth over USD2.5 billion by the next year, up from USD638 million in 2019. Together, these trends have positioned Southeast Asia as a global leader in social commerce, and a fertile ground for the success of platforms like TikTok Shop that employ influencers and content-focused selling tactics.
With over a billion active users on its app, TikTok already had a significant reach advantage. But the way the app uses its features to enable and promote selling is what has set its success apart from other social media platforms. For example, the platform operates based almost entirely on recommendations rather than searches, which ensures products are tailored to user preferences from the get go. Being a content-driven platform, TikTok also has access to an entire ecosystem of creators and channels, which have been pivotal to the growth of its shoppertainment offerings.
Shoppertainment is the use of videos – often live-streamed – to drive sales for a particular product or brand. Influencers and sellers essentially broadcast themselves live on the platform, either demonstrating the use of the product or talking about its benefits. Users can then purchase the products – which are sold live on air – and even bid on them in some cases. TikTok also taps creators to develop and promote what it calls ‘viral products’, and has an affiliate program that helps sellers identify influencers who align with their brand and reach out to collaborate on creative content. Brands like Shein, for example, have utilised TikTok’s influencer marketing to drive traffic and generate sales, combining engaging content with seamless shopping experiences to capture TikTok’s vast user base.
The Bigger Picture for Brands in SEA
TikTok Shop’s success is an example of how influencer-led social commerce is redefining how brands connect with consumers – a shift that is poised to change the status quo of the online retail landscape. And consumer behaviour reflects this.
In a rapidly expanding digital advertising, consumers are becoming more privacy-conscious and increasingly discerning about the advertising they receive. They are also increasingly seeking trusted recommendations before purchasing a product or service – something that is increasingly shaped by influencers. For example, a significant 80% social media users in Asia who follow influencers are inclined to purchase products when these influencers recommend them. This shift signals that personal and more authentic forms of marketing are becoming a must-have for brands looking to reach increasingly selective digital customers.
This is particularly relevant in diverse markets like Southeast Asia which vary widely in cultural, lingual and other nuances. Collaborating with influencers offers brands a significant edge due to their capacity to cultivate trust and interaction among their audience through the dissemination of genuine and relatable content. Through influencers, brands have a chance to not only strengthen connections with their customers and build brand loyalty, but also efficiently enter new markets and tap into broader audiences.
For brands in the region, influencer marketing also provides solutions to mounting challenges in online advertising, including rising costs, privacy or targeting limitations and the rising incidence of ad fraud in the region. Social commerce overall also simplifies the customer journey significantly, with shoppers now able to discover products, interact with influencers who provide firsthand reviews and recommendations, and make purchases—all within the same platform. This streamlined process reduces friction for brands and shoppers, allowing brands to focus on creative ways to engage their customers instead.
It is increasingly clear that the rapid emergence of social commerce in Southeast Asia has reshaped how brands engage with consumers. By tapping the region’s growing influencer ecosystem, brands can stay ahead of this rapidly growing space, stay aligned with the unique characteristics of its different markets and connect with audiences in deeper and more authentic ways.
