TikTok teams up with Thailand’s biz dept to boost SME impact
TikTok Shop has taken a significant step by signing a memorandum of understanding (MoU) with Thailand’s Department of Business Development to boost the contribution of small and medium-sized enterprises (SMEs) to 40% of the GDP by 2027, up from the current 35%.
TikTok Live data from Thailand shows that in 2023, there were 700,000 Thai creators live streaming on the platform each month. Deputy Commerce Minister, Napintorn Srisunpang states his optimism regarding this move.
“We see the potential of TikTok users in Thailand, with 43 million users and the majority spending time on the platform.”
Thais spend an average of eight hours daily on the internet, with the country boasting 63 million people online, which is 88% of the population. Surveys reveal that 67% of Internet users in Thailand purchase products online.
The MoU aims to support local businesses in three key areas: seizing opportunities in the digital economy, expanding access to learning and self-development on TikTok Shop, and building a community to foster a smart economy.
TikTok Shop plans to enhance digital marketing skills for around 7,000 Thai SMEs by year-end through tailored hybrid workshops.
TikTok had earlier registered TikTok Shop Co in Thailand, following a similar registration in Singapore.
The 2023 MSME Situation Report by the Office of Small and Medium Enterprises Promotion highlighted that SMEs contribute more than 6.1 trillion baht, equating to 35.2% of Thailand’s GDP, highlighting their vital role.
“This underscores their vital role in the country, which is transitioning to a digital economy.”
As the market shifts towards live commerce and the ‘shoppertainment’ trend, TikTok Shop offers a channel for learning about online marketing. Through their academy, businesses can access a wealth of knowledge and techniques, presenting significant opportunities for growth.
A report on the effects of TikTok on Southeast Asia indicates that SMEs in Southeast Asia have increased their income by almost 50% from selling products and services on TikTok, presenting a significant opportunity for Thai SMEs to accelerate their learning and acquire new skills, such as live streaming on the TikTok Shop platform, reported Bangkok Post.
