TikTok enters Latin America, expanding its business territory to another city

The “relationship” between the Latin American market and Tuke is like that of a couple during their school days—there’s a natural harmony between them.

The innate enthusiasm and expressive personalities of Latin Americans have made this region one of the easiest places in the world for internet celebrities to emerge. As the hottest social media platform in recent years, Tuke has become the largest gathering place for influencers worldwide.

So this time, as soon as the news“Tuke Shop is about to launch in Latin America” was released, netizens could already foresee the booming future of the Latin American market.

Prior to this, Tuke had already launched Tuke Shop in several markets, including the United States, Malaysia, the United Kingdom, and Singapore. By constantly adapting and learning from other domestic and international e-commerce platforms, Tuke has successively introduced fully closed-loop, fully managed, and deposit-based business models, making it better suited to local markets.

Take the US market as an example. Since Tuke fully opened its marketplace business in the US last September, its total GMV in the US market has achieved astonishing growth, with a huge month-on-month increase. In addition, the number of new users joining the platform in a single month also hit a record high, exceeding 5 million.

Tuke has therefore set a new goal for the US market: Tuke Shop’s annual GMV for 2023 is to reach nearly $20 billion! In 2024, it aims to double that to $50 billion!

This really shows Tuke’s boldness.

It’s important to know that for Tuke to develop e-commerce in the US means competing for business with local giants like Amazon. Coupled with Tuke’s massive traffic, this has a huge impact on the market.

No matter what, the US market has now been cracked open, and the road ahead will only get easier. So the next market to watch is Latin America!

Currently, the Latin American market is experiencing a rapid boom in e-commerce. According to statistics, the e-commerce transaction volume in Latin America will reach $509 billion in 2023, and is expected to continue expanding at an annual growth rate of 21% over the next three years. Especially in regions such as Peru, Mexico, and Paraguay, the growth potential of e-commerce is huge,with a projected growth rate of an astonishing 33%.

Tuke has already achieved significant influence in the Latin American market, becoming the main social platform for most Latin Americans. About 60% of well-known Latin American influencers are active on Tuke, far surpassing the proportions on Instagram and YouTube. This gives Tuke enormous e-commerce potential in the region.

In fact, even though Tuke Shop has not yet opened in Latin America, Tuke has already become an important platform for Latin American influencers to showcase themselves and promote products.

Data shows that over 80% of Latin American users shop through social media, and 29% make purchasing decisions based on recommendations from social platforms. This means that once Tuke Shop opens in Latin America, Tuke’s e-commerce business could achieve explosive growth in this market.

If domestic companies choose to enter the Latin American market at this time, whether they are MCN agencies training influencers to sell goods, B2C e-commerce, or B2B manufacturing, they could become “the first to eat the crab” and enjoy the “windfall” that is likely to appear.

What’s more, a few days ago, the Brazilian E-commerce Association (ABComm) predicted that by 2024, Brazil’s e-commerce revenue could reach 204.27 billion reais ($41.94 billion), about a 10% increase over the 2023 sales forecast.

All this demonstrates the potential of the Latin American region.

After all, there are 33 countries in Latin America, and Brazil is just one of them. Some other countries, backed by the US and others, also have very good social development in all aspects.

Of course, Tuke’s e-commerce journey in Latin America will not be all smooth sailing. Global e-commerce platforms such as Amazon, Shein, and AliExpress are all actively expanding into the Latin American market, while local e-commerce platforms like Mercado Libre and Falabella also have strong competitiveness.

So in the long run, although Tuke has already made a good start in terms of traffic, it still has a long way to go in the Latin American market.

However, if you really become “the first to eat the crab,” the benefits you gain will be something that latecomers will have to work twice as hard for.