TikTok Shop is not ceasing its expansion globally! Recently, on June 30, TikTok Shop was launched in Japan, which is already available in sixteen other countries, including the US, the UK, Ireland, Spain, Germany, and some south-east Asian nations. It is changing the e-commerce landscape of each country where it is landing. 

Diversification of Marketplaces

Penetrating various markets of different nations to scale globally has been a strategic move of TikTok Shop Japan. This is important not only for TikTok to expand worldwide, but also to increase the users who help sellers generate more revenue. It is also helpful for sellers who want to step into the international market and diversify their sales for increased profits. 

Catering to 33 million TikTok Users in Japan 

Japan, at present, has more than 33 million users on TikTok, and they are the targeted customers. Hence, it is a huge opportunity for sellers looking to expand their business online. Not just this, they can also sell beyond the boundaries of Japan, giving their brand a platform to sell their products globally. 

A New Twist in the Japanese E-commerce 

The debut of TikTok Shop in Japan has added a new opportunity for online shoppers. Amazon Japan and Rakuten Ichiba are already established e-commerce platforms in Japan, along with many other domestic ones. It would be interesting to see if TikTok Japan can compete with these existing platforms that already have a huge market share. 

An Attempt to Attract Gen Z & Millennial Shoppers 

In Japan, around 14.5% of the population, i.e., 18 million, is Gen Z (born between 1997-2012), and millennials make up 27 million of the total population. The young generation, ranging from 18-34, accounts for 60% of the total TikTok users in Japan. This suggests that TikTok Shop has great potential to offer to brands. Most of the Gen Z and Millennials use TikTok as their entertainment, and it has the highest screen time of 96 minutes, which is more than one and a half hours per day. The young generation, ranging from 18-34, accounts for 60% of the total TikTok users in Japan. 

Gateway to Digitization for Local Brands 

TikTok Shop is an easy platform for anyone to join and start selling. This is why local brands are also expected to join TikTok Shop to digitize their sales. Here are some of the pioneers that are among the first to join this platform: Anker Japan I-ne, WEGO, Kao Group’s KATE, MTG, Nissin Food Products, Unilever Japan, YA-MAN, Lacoste Japan, and others. 

TikTok Shop Grows Despite Regulatory Hurdles 

TikTok Shop is unstoppable even after facing several regulatory challenges. Recently, the US has asked ByteDance, the parent company of TikTok, to limit its operations in the US. Washington has also threatened to ban TikTok if it does not follow the regulations, but this has been postponed at present. Japan has become the 17th nation where TikTok Shop has begun its operations. It is evident that this platform is here to grow and excel, but it would be more fascinating to watch how it navigates to more countries and redefines the e-commerce rules there.

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