TikTok, under ByteDance, acquired a majority stake in Indonesia's Tokopedia to adhere to local laws. This merger has disrupted Indonesia's e-commerce ecosystem, evidenced by a steady decline in Tokopedia's sales and layoffs of at least 2,500 employees. Sellers now face demands to engage in influencer-style marketing to promote their products, a shift from previous listing practices. In October 2023, the Indonesian government issued a ban on TikTok, citing the need to protect small and medium-sized businesses, leading ByteDance to seek local partnerships to operate.
Tokopedia's sales volume has continued to decline steadily after ByteDance's acquisition. For the first couple of quarters, we gave them the benefit of the doubt of being a new owner carrying out messy integration work. At this point, it's clear that they are not investing strategically in Tokopedia.
Sellers have lost agency over the platform. TikTok representatives have asked them to create videos and adopt influencer-style marketing practices to gain visibility.
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