TikTok Shop emerging as growth driver for Malaysian SMEs through ‘shoppertainment'

The Sun

7 hours ago

PETALING JAYA: TikTok Shop is emerging as the growth driver for Malaysian small and medium enterprises through its social media engagement and e-commerce combination known as 'shoppertainment'.
For local creators interviewed by SunBiz, the platform has become a game changer.
Pinn Yang, for example, said TikTok Shop finally bridged the gap between content discovery and actual sales conversion.
'Before this, even with our strong following, there was no direct way to turn discovery into purchase. With TikTok Shop, we closed that gap,' he said.
His team grew from experimenting with live selling to generating over RM3.8 million in sales during the Yang Riang Raya campaign within a year.
The secret, he said, lies not just in using the platform, but in the speed of testing, feedback and adaptation.
'People think you need a big audience or fancy equipment. But when we started, it was just me, a phone and a ring light. What really matters is consistency and truly understanding what your audience wants.'
For Puspa Gomen, TikTok Shop transformed her brand by simplifying the buying process and expanding reach.
'Some of my TikTok videos reached up to eight million views, and in just three months, I made almost half a million in sales,' she shared.
She added live streams allow buyers to see products in action, ask questions and build trust in real time which are crucial for driving repeat purchases.
Eira Syazira, founder of Candyta, echoed the sentiments, calling TikTok Shop a game changer that enabled rapid scaling far beyond traditional retail. In just six months, Candyta saw sales surge, with 35% now coming from returning customers and its follower count multiplying fivefold.
Meanwhile, Nabilah Nazib of Sugardoll described TikTok Shop as a pivotal shift from a labour-intensive, agent-based system to a direct-to-consumer model.
'Previously, our revenue relied on manual order-taking. Now, sales are driven by content, not manpower. Stock sells out in hours after a viral live,' she said.
Beyond reduced acquisition costs and faster sellouts, she noted that genuine, problem-solving content matters more than follower count. 'This proves that today, scaling a brand is less about team size and more about being visible, relatable, and consistent.'
Syeikh Omar Sadeq, another creator, saw sales jump two to three times after joining TikTok Shop.
'Short videos help build community, while live sessions let us explain products and connect directly. Many customers return because they feel more confident after watching our lives,' he said.
Contrary to popular belief, creators said TikTok Shop isn't just for young shoppers or cheap products.
Premium offerings can succeed too if the story, authenticity and community connection are strong.
The latest data on TikTok Shop's global gross merchandise value (GMV) shows that consumers in Malaysia spent a whopping US$2.724 billion (about RM12.07 billion) in 2024.
According to Tabcut.com, TikTok Shop's GMV in Malaysia grew 104% year-on-year from US$1.3 billion in 2023, making Malaysia one of the platform's top six markets globally.
TikTok Shop is not just expanding rapidly, it is outpacing traditional giants in percentage growth and positioning itself as the second-largest platform in the market.
Data from ecommercedb.com showed Shopee is leading the Malaysian market with US$7.24 billion in GMV for 2024, followed by TikTok Shop and Taobao. However, Tik-Tok Shop is leading the surge in live and video commerce in Southeast Asia, where players like Shopee and Lazada are playing catch-up.