YouTube is challenging TikTok Shop by partnering with Shopee to bring shoppable videos to Indonesia, Thailand, and Vietnam. This taps into the region’s $149B e-commerce market.
YouTube has joined forces with Shopee to launch YouTube Shopping in Indonesia, Thailand, and Vietnam. This partnership enables users to shop directly from videos via links to Shopee. With 332M users in Southeast Asia, YouTube aims to leverage its scale to rival TikTok Shop, which dominates video e-commerce in the region. Southeast Asia’s e-commerce market, worth $149B in 2024, is expected to hit $300B by 2029. “YouTube offers creators a new growth avenue,” said Ajay Vidyasagar, YouTube’s Asia-Pacific director.
YouTube is onboarding top influencers like Amanda Static, Rachel Goddard, and Le Phuong Ly to promote beauty products, the region’s most popular category for influencer-led sales. Amanda noted, “YouTube gives me the most growth compared to TikTok.” Influencer content accounts for 40% of user time on YouTube in the region. However, smaller creators still face challenges compared to TikTok’s ease of content creation and algorithmic reach, as noted by Janice Jocelyn, an Indonesian talent agency owner.
Unlike Western markets, Southeast Asian consumers prefer shopping on social media platforms and e-commerce sites over standalone brand websites. Influencer-driven marketing contributes to 20% of the region’s online sales. With TikTok reaching 265M regional users, it maintains a significant edge in shoppertainment. However, regulatory scrutiny, such as Indonesia’s ban on social media direct sales, creates hurdles for TikTok Shop. This might open opportunities for YouTube’s partnership with Shopee.
YouTube’s success hinges on converting its entertainment-focused audience into shoppers. Categories like technology and gadgets might benefit first, as users often rely on YouTube for reviews. Yet, TikTok remains strong in beauty and fashion, offering short, engaging content. For now, users like Jakarta-based Jocelyn Budipranoto favor TikTok for its quick reviews and competitive pricing. YouTube must address these gaps to make YouTube Shopping a household name in Southeast Asia.
Can YouTube beat TikTok in Southeast Asia's shoppertainment market?
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