TikTok Shop Southeast Asia Summit: Four Paths of Cross border E-commerce Growth Unveiled

At the recently concluded 2024 TikTok Shop Southeast Asia Cross-border E-commerce Annual Summit, brand marketing strategy expert Anthony Shi shared four growth models for cross-border merchants through the "ACE indicator system and business methodology," namely Assortment, Content, and Empowerment.

Through these models, merchants can find a development path that suits them and enhance their market competitiveness. So, what exactly are these four models? Tuke will take everyone to explore them in depth.

I. Detailed Explanation of the Four Growth Models

1. Mall Cold Start Model (A Assortment + C Content)

Many merchants face a common problem when entering a brand new market: how to quickly kickstart sales?

At this time, the mall cold start model can be applied. By establishing a complete assortment system, merchants can ensure that products are smoothly listed and sold, and then use content to attract users' attention.

This model is suitable for merchants newly entering the market, helping them to quickly start and build an initial user base.

Key Implementation Points: Build an efficient assortment system, create high-quality content, and attract and retain users.

2. Affiliate Influencer Driven Mall Model (C Content + A Assortment)

After TikTok sellers get on track, more or less, they will promote products by cooperating with local influencers. At this time, the affiliate influencer driven mall model can be applied.

This model is to directly cold start with content, and then accelerate sales with the assortment system. The key is to operate the local affiliate well, cooperate with local influencers, and use their influence to drive product exposure and sales.

Key Implementation Points: Cooperate with local influencers to create content that attracts users; ensure the completeness of the assortment system and convert traffic into actual sales.

3. Content-driven Explosive Marketing Acceleration Model (C Content + E Empowerment)

The content-driven explosive marketing acceleration model can be applied to brands such as sports, FMCG, beauty, etc.

This model attracts users' attention by creating viral content, while combining with strong marketing campaigns to accelerate sales growth.

Key Implementation Points: Create content that triggers widespread user sharing; use precise marketing strategies to convert content popularity into sales.

4. Integrated Marketing Full-domain Growth Model (A Assortment + C Content + E Empowerment)

For mature brands that already have a certain foundation in the market, the integrated marketing full-domain growth model is undoubtedly the optimal choice. This model requires the synergy and comprehensive integration of assortment, content, and marketing to improve overall sales performance.

That is, products are neatly arranged on the shelf, content marketing is vibrant, and with precise advertising, both brand awareness and sales are boosted.

Key Implementation Points: Establish a complete assortment system, create high-quality content, implement refined marketing activities, and improve overall sales performance.

TikTok Shop Southeast Asia Brand Marketing Strategy Expert Anthony

II. Choosing the Right Growth Path

Anthony Shi said: "We have summarized four key paths, and of course, we also believe that the growth paths for merchants on TikTok Shop are not limited to these, and there will be more paths. But going back to the brand type of the merchant and the maturity of the merchant in Southeast Asia cross-border e-commerce, it is possible to choose different paths."

Each growth path has its unique advantages and applicable scenarios. Merchants should choose the most suitable path according to the characteristics of their own brand and their maturity in the Southeast Asian market. At the same time, as the market develops and merchants accumulate experience, strategies can be continuously adjusted and optimized to achieve better growth results.

TikTok Shop Southeast Asia Cross-border E-commerce General Manager Adam

At the summit, well-known cross-border e-commerce companies also shared the results brought by using the ACE model.

For example, the emerging leading beauty brand MISTINE, after entering TikTok Shop Southeast Asia cross-border e-commerce in 2023, achieved explosive sales growth in a short period of time through the "content-driven explosive marketing acceleration model".

MISTINE produced a series of viral videos through self-broadcast short videos and cooperation with well-known beauty bloggers, quickly attracting a large amount of attention, and converted this attention into actual sales through precise marketing campaigns.

This led to a 200% increase in GMV from marketing campaigns and new customer acquisition, and ultimately achieved a nearly 150% quarter-on-quarter growth in the first quarter of 2024.

The person in charge of the MISTINE beauty brand said: "Our success cannot be separated from the platform and tools provided by TikTok Shop. Through carefully planned content and precise marketing, we have not only increased brand awareness, but also achieved a leap in sales."

The Southeast Asian market is a hotbed for cross-border e-commerce, full of opportunities and challenges. Through the four growth models provided by TikTok Shop, merchants can find a development path that suits them and stand out in fierce market competition.

Moreover, in order to promote the growth of cross-border brands, TikTok Shop Southeast Asia Cross-border E-commerce also launched a "Flywheel Plan" specifically for merchants going overseas to the Southeast Asian market at the just-concluded summit.

This plan is committed to providing targeted services and support for merchants of different types and at different stages of development. The plan will include store opening, operations, payment settlement, and logistics, providing merchants with more comprehensive infrastructure content in all aspects, aiming to help merchants seize opportunities and further achieve business growth.