Unlocking brand potential: How TikTok supercharges GMV and recognition

This post is sponsored by TikTok.

Southeast Asia’s commerce landscape is undergoing a dynamic transformation, driven by content-led experiences that seamlessly integrate discovery and purchase. TikTok has emerged as a pivotal player in this evolution, boasting over 325 million users in the region and presenting brands with unique opportunities to enhance their gross merchandise value (GMV) and brand recognition.

As brands seek to navigate this rapidly changing environment, the question arises: How can they effectively harness TikTok’s transformative power to stand out from the competition?

TikTok users spend nearly the duration of a feature film on the platform, making it a top destination for video content. This immersive environment allows brands to present their offerings to a highly engaged audience, maximising visibility and interaction.

Investing in TikTok’s advertising solutions can yield significant returns; brands can expect an impressive US$2.30 back for every dollar spent, along with a return on ad spend that is double the industry average. This exceptional performance underscores TikTok’s effectiveness as a strategic tool for building brand equity and driving growth.

Supercharge your sales with TikTok’s new offerings

To help brands thrive, TikTok provides a comprehensive suite of solutions designed to amplify marketing efforts at every stage of the customer journey. Features such as TopView, TopFeed, WebAds, and Video Shopping Ads are tailored to support brand awareness, drive conversions, and boost sales.

1. Focus on hero SKUs

The goal goes beyond mere awareness. Brands must focus on converting engagement into sales by developing high-demand hero stock-keeping units (SKUs), defined as products with over 30 daily orders on average in the past month. By further leveraging TikTok's LIVE Shopping Ads, these hero SKUs can be further elevated into superhero SKUs, achieving over 100 daily orders.

1. Consider TikTok's GMV Max

To enhance sales performance, TikTok’s latest automated solution for TikTok Shop, “GMV Max”, helps brands fully leverage organic traffic signals and automate ad creation and optimisation. It includes two key features:

• Product GMV Max: This solution automatically optimises for non-LIVE ROI, delivering up to a 100% increase in incremental GMV across video and product listings. By utilising organic traffic signals, it boosts overall GMV for sellers, achieving an impressive ROI rate exceeding 80%.
• Live GMV Max: Designed to optimise total liveroom ROI, this feature caters especially to sellers with limited manpower or those laser-focused on ROI and GMV growth. Results show a 100% increase in GMV and over 80% ROI achievement.

Complementing this is TikTok’s Business Accelerator, a new feature on the TikTok Seller Center that provides key insights and action plans for growth. This solution helps sellers evaluate their shop’s performance, and identify growth opportunities across three essential areas: assortment, content, and empowerment, allowing them to see how they rank compared to other shops in their category.

Making waves through transformative campaigns

Brands are already experiencing significant success through innovative campaigns on TikTok. ANESSA Vietnam sought to boost sales by leveraging TikTok Shop’s live-stream feature to increase traffic and engagement. To achieve this, the brand crafted a multi-layered live-stream strategy that centred on connecting with its target audience in an authentic and relatable way.

By introducing three distinct live-stream scenarios, ANESSA showcased its products in casual, conversational set-ups, emphasising everyday use cases. This approach allowed the brand to engage viewers on a more personal level, making the content feel relevant and accessible.

The results were impressive. ANESSA saw a 213% increase in live watch page views, demonstrating heightened engagement. Sales also saw a significant surge, with GMV for business-as-usual campaigns growing by 27%. Additionally, the brand experienced a 119% increase in new followers, reflecting the success of its targeting and engagement efforts.

Nestlé’s success story on TikTok also stands as a testament to the platform’s potential for growth. Reflecting on its successes on the platform, Nadia Louis, head of digital and eCommerce, Asia, Oceania, Africa, and the Middle East, at Nestlé, said: “At Nestlé, we’ve seen first-hand how a strategic, data-driven approach can maximise sales on platforms like TikTok.

“By tailoring our product mix to meet the needs of high-intent shoppers and creating engaging content like short-form videos on TikTok, we fuelled meaningful engagement and boosted our visibility.

“Our partnership with TikTok not only drives immediate results, but also fosters lasting connections with consumers, ensuring sustained sales growth over time.”

As Southeast Asia’s commerce landscape continues to evolve, TikTok stands out as a powerful platform for brands looking to amplify their GMV and enhance brand recognition. By leveraging TikTok’s unique features and solutions, brands can not only capture the attention of consumers, but also foster deep and lasting relationships that drive sustainable growth.

In this rapidly changing business environment, the right blend of creativity, data-driven insights, and platform expertise, can truly make a difference. Embracing TikTok’s transformative potential is not just an opportunity – it’s a necessity for brands aiming to thrive and achieve remarkable GMV growth.

The writer is Matty Lin, general manager, global business solutions, TikTok SEA.