TikTok’s e-commerce affiliate, TikTok Shop, has made significant strides in Southeast Asia’s market within just one year of its launch, according to a recent report.

Leveraging its vast user base from the popular video-sharing app, TikTok Shop expanded its business after testing the Indonesian market in 2021.

Despite trailing behind established competitors like Shopee and Lazada, TikTok Shop achieved the fastest growth rate, increasing its gross merchandise value (GMV) sevenfold to $4.4 billion in 2022.

TikTok Shop aggressively expanded into several Southeast Asian markets with large TikTok user populations, while also investing in enhancing its e-commerce capabilities.

The region’s e-commerce sector as a whole saw a 14% YoY growth in GMV, reaching nearly $100 billion.

Shopee led the market with a GMV of $47.9 billion, followed by Lazada at $20.1 billion and Tokopedia at $18.4 billion.

Despite a temporary moderation due to the return of offline shopping post-Covid-19 restrictions, e-commerce sales are expected to continue growing in Southeast Asia.

The region also has the potential to benefit from Chinese brands and manufacturers expanding into new markets, diversifying the variety of goods available.