Good afternoon, everyone. Today, I’ll discuss How TikTok Shop is disrupting Amazon's dominance. As the global e-commerce market evolves, TikTok Shop has quickly emerged with innovative strategies, challenging Amazon, the long-time leader. We’ll analyze this trend and explore how TikTok Shop is reshaping the e-commerce landscape.

The following presentation will cover three key sections:

let’s start with the first part – Market Landscape. For decades, Amazon has nearly monopolized global e-commerce. However, TikTok Shop is now rising rapidly.

Let’s first take a look at the GMV growth comparison. In 2024, TikTok Shop’s GMV reached $33.2 billion with a 689% YoY growth, while Amazon’s growth was just 15.3%.

Next, let’s look at changes in user behavior. TikTok users spend an average of 95 minutes daily, with 68% of beauty orders coming from impulse buys, compared to only 12 minutes on Amazon.

Finally, let’s discuss category penetration differences. Amazon dominates electronics and home goods, while TikTok Shop is growing in beauty, personal care, and fashion.

TikTok Shop disrupts the traditional e-commerce landscape with three core strategies:

The first core weapon is the influencer ecosystem and social viral growth.TikTok has over 10.9 million influencers, with a 1:6.5 ROI for mid-tier influencers, significantly driving sales on the platform.

The second core weapon is algorithm-driven "interest commerce."TikTok’s AR try-ons and virtual makeup trials have reduced return rates and increased conversion rates, far outperforming Amazon.

The third core weapon is the low-cost strategy and supply chain restructuring.Through its fully managed model and white-label supply chain, TikTok offers more cost-effective products.

Finally, let’s look at the future trends and how TikTok plans to succeed between 2025 and 2030.

The first key is technological integration.TikTok plans to invest $5 billion in developing AI-generated content tools and expanding AR/VR shopping experiences.

The second key is innovation in the supply chain. Local European warehouses reducing lead time to 3-5 days.

The third key is compliance and value-based competition. Launch of the "DSA Compliance Detection System" and a partnership with KPMG for "Smart VAT Engine" to tackle global compliance.

TikTok, with its innovative business model and technology-driven approach, is poised to play an even larger role in the e-commerce sector, driving further industry transformation.Thank you for your attention. If you have any questions, feel free to ask now.

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