Investment Rating - The report indicates a strong growth potential for TikTok Shop, with a projected GMV exceeding $50 billion in 2024, suggesting a positive investment outlook for the industry [4]. Core Insights - TikTok Shop is experiencing explosive growth globally, driven by its unique shopping experience and attractive discount policies. The platform is becoming a significant player in the e-commerce landscape, particularly in the U.S. market [4][8]. - The seller landscape is diversifying, with a notable percentage of sellers entering the U.S. market, indicating a robust seller ecosystem [8]. - The report highlights the challenges faced by sellers, including product selection, marketing, and policy changes, which are critical for operational success [19]. Summary by Sections TikTok Shop Seller Status Survey - In 2024, TikTok Shop's transaction volume is expected to surpass $50 billion, with 57% of sellers operating in the U.S. market [4][8]. - The sales categories are diverse, with fashion and beauty being the most common, but not overwhelmingly dominant, indicating a balanced market [10]. - A significant portion of sellers (62%) reported revenue growth, while 19% remained stable, and another 19% experienced declines, showing room for improvement [16]. TikTok Shop Policy Changes and Market Data - TikTok Shop implemented several policy changes in 2024, including a new guarantee deposit policy and adjustments to commission rates, which have implications for seller profitability [24][26]. - The total GMV for TikTok Shop in 2024 reached over $28.1 billion, with the U.S. market leading at $6.8 billion [36][37]. - The report notes a seasonal trend in GMV, with significant growth in the second half of the year due to promotional activities [41]. TikTok Shop All-Site Store Analysis - The top-performing stores in the U.S. achieved GMVs exceeding $50 million, with health and beauty products dominating sales [56]. - In the UK, beauty and fashion categories are prominent, while in Indonesia, beauty products lead the market, reflecting regional consumer preferences [60][62]. - The report emphasizes the importance of understanding local market dynamics and consumer behavior for successful store operations across different regions [48][49]. TikTok Shop Category Best Practices - Successful brands on TikTok leverage engaging content that resonates with users, driving product popularity and sales [84]. - Key elements for creating viral products include innovative marketing strategies, effective use of social media influencers, and aligning products with current trends [87][92][113].

Investment Rating - The report indicates a strong growth potential for TikTok Shop, with a projected GMV exceeding $50 billion in 2024, suggesting a positive investment outlook for the industry. Core Insights - TikTok Shop is experiencing explosive growth globally, driven by its unique shopping experience and attractive discount policies, with a forecasted GMV of over $50 billion in 2024 [4]. - The seller landscape is diversifying, with 57% of sellers operating in the US market, indicating a robust seller ecosystem [8]. - A significant portion of sellers (62%) reported steady revenue growth, highlighting the platform's effectiveness in generating sales [18]. Section Summaries TikTok Shop Seller Status Survey - In 2024, TikTok Shop's global momentum continues, with a projected GMV surpassing $50 billion [4]. - The US market is the most favored, with 57% of sellers focusing their operations there, followed by the UK (13%), Thailand (9%), and Vietnam (6%) [8]. - The sales categories are diverse, with fashion and beauty being the most common but not dominant, each accounting for 17% of sales [10]. - Many sellers are still in a low-cost trial phase, with a significant number entering the platform without prior overseas experience [12]. - Approximately 62% of sellers reported revenue growth, while 19% maintained their revenue levels compared to the previous year [18]. - Key operational challenges for sellers include product selection, marketing, and policy changes [19]. TikTok Shop Policy Changes and Market Data - TikTok Shop implemented several policy changes throughout 2024, including a new guarantee deposit policy and the launch of the "Industry Belt 100 Plan" aimed at enhancing supply chain capabilities [24][25]. - The US market leads in GMV with $6.8 billion, followed by Indonesia ($5.5 billion) and Thailand ($5.1 billion) [38]. - The overall GMV for TikTok Shop reached over $28.1 billion in 2024, with significant growth in the second half of the year driven by seasonal promotions [42]. TikTok Shop All-Site Store Analysis - The top-performing stores in the US achieved GMVs exceeding $50 million, with health and beauty products dominating sales [57]. - In the UK, beauty and fashion categories are prominent, with the leading store generating approximately $32.8 million [61]. - Indonesia's market is characterized by a strong preference for beauty products, with the top store achieving $52 million in sales [65]. - Thailand's leading store focuses on digital products, achieving a GMV of approximately $68.9 million [69]. - Vietnam's top store, specializing in beauty products, reached a GMV of over $107 million, indicating strong consumer demand [73]. - The Philippines market shows a balanced GMV distribution among top stores, with the leading store generating around $24 million [76]. - Malaysia's market features a mix of mid to high-priced products, with the top store focusing on Muslim fashion [79]. - Singapore's market has a significant gap in sales among top stores, with the leading store achieving nearly $9.6 million [83]. TikTok Shop Category Best Practices - Successful brands on TikTok leverage engaging content that resonates with users, driving product popularity through innovative marketing strategies [85]. - Key elements for creating best-selling products include trending ingredients, effective video content, and before-and-after comparisons [88][90]. - The report highlights various successful product categories, including skincare, beauty tools, home organization, fashion accessories, tech gadgets, health products, and kitchen tools, each with unique marketing strategies [92][108][114][120].

Industry Overview - Cross-border e-commerce sellers experienced a 50% increase in revenue and 56% increase in profit in Q3 2024, driven by mid-year promotions and lower shipping costs [6][7] - 65% of Amazon sellers participated in the 2024 Prime Day Fall promotion, with 30% aiming to gain early traffic and 25% focusing on inventory clearance [9][12] - Amazon remains a stable growth channel, with Anker Innovation generating 5.04 billion yuan in revenue from Amazon, accounting for 52.26% of its total revenue [13][14] - Sellers are expanding into new markets, with 18% focusing on Southeast Asia, 16% on Latin America, and 13% on Japan and South Korea [16] - Clothing, home goods, and outdoor sports are the top categories sellers plan to expand into, with 12%, 11%, and 9% of sellers respectively targeting these categories [18][21] Platform Changes - Amazon canceled excess storage fees in the US, Europe, and Canada starting July 1, 2024, removing the $10 per cubic foot monthly charge [25] - Amazon updated its product image display rules, requiring at least three high-quality images per product page, with AI-generated descriptions replacing non-compliant content [26][27] - TikTok Shop updated its multi-store rules in Southeast Asia, allowing one business license to cover up to two stores per country in five markets [30] - Temu launched in Thailand, offering 90-day free returns and discounts up to 90%, as part of its expansion in Southeast Asia [34] - Temu opened its platform to European sellers, providing free marketing and support services without charging basic fees or sales commissions [35] Logistics Trends - Shipping prices for US and European routes dropped in Q3 2024, with rates to the US West Coast falling 32.2% from their peak in early July [37] - 68% of small and medium-sized freight forwarders faced financial pressure due to rising labor costs and increased capital requirements, leading to industry consolidation [38][40] Domestic E-commerce Transition - 55% of domestic e-commerce sellers transitioning to cross-border cited declining profits in the domestic market as the primary reason [42] - MCN agencies and celebrities are accelerating their overseas expansion, with Southeast Asia and Europe being the top target markets [44][46] - 63% of cross-border brand sellers expect higher overseas revenue in 2024, with 53% anticipating increased profits [48][49] - The integration of cross-border e-commerce with industrial clusters is driving growth, with China's cross-border trade reaching 1.22 trillion yuan in H1 2024, up 10.5% year-on-year [51]