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Hello, everyone.
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I'm Aparna.
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I am a Managing Director and Partner
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with Boston Consulting Group based in Singapore.
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I lead BCG's Center for Customer Insight,
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which is a center of excellence
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that looks out for everything
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related to customer and consumer insights
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around the world.
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With me, I'm delighted to welcome today, Chew Wee,
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who heads business marketing for TikTok
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across Asia-Pacific.
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Chew Wee, it's such a delight to host you
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here in our office today.
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Thank you, Aparna, happy to be here with BCG
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to discuss commerce trends in Asia-Pacific.
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Our pleasure Chew Wee.
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So today we are going to talk about the digital consumer.
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In particular, the digital shopper.
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And we will examine, in a lot of detail,
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one specific trend that offers a massive opportunity
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for marketeers across Asia.
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We call it shoppertainment.
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It's really a blend of storytelling,
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education, as well as commerce.
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And the idea is that it's a video first,
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often volume-on, highly engaged format
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that places entertainment first
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and commerce or shopping later.
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BCG partnered up with TikTok
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to create a pretty extensive piece of research
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across Asia-Pacific to understand
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and unpack shoppertainment.
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We found that by 2025,
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Shoppertainment will become a trillion dollar opportunity
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across Asia-Pacific.
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That is a tremendous opportunity.
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And yet, marketeers are barely scratching the surface
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of what this means
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in terms of what they can do with consumers.
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So to do that,
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we really understood shoppertainment at the next level,
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and we went straight to the consumers.
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We used BCG's proprietary demand spaces methodology
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to really understand how people shop online.
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Demand spaces is a proprietary methodology
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that tries to understand consumers
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in the language of consumers.
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We don't assume any segments.
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We don't assume even an x-axis or a y-axis.
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We speak to the consumers in great detail about their needs
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in their last online purchase.
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And then we organized those needs
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through many, many regression analyses
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into natural clusters that emerge from the consumer data.
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We then named those clusters, we called them demand spaces, and studied them.
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When we did this in the area of online shopping,
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we found six demand spaces.
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Three of these are what we call, "functional demand spaces."
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These are, I'd say, more routine,
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more convenience-based, and more habitual purchases.
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For example, convenience shopping,
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which could be your weekly grocery shopping.
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Or validation, where, I know what I want to buy,
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but I'm trying to validate it a bit.
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On the other hand, we also have emotional demand spaces.
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These are really, I'd say, moments of truth,
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where you are really interacting
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with the shopping occasion at the next level.
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Here, for example, you're looking to be inspired.
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You're seeking an adventure.
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You're really experimenting.
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Or, you're simply looking to indulge,
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treat yourself, buy something fun.
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So when we organize these demand spaces,
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we understood that shoppertainment is uniquely effective
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in going after emotional demand spaces.
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Now, we don't mean to say that any demand space
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is superior to another,
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but we find that the shoppertainment methodology,
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the entertainment first methodology,
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really sparks that moment of truth with the consumer,
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and triggers something new.
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Whether it's a new brand, a new purchase occasion,
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or a new way of interacting with the customer journey.
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So, with that,
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let's dive deeper into shoppertainment with Chew Wee.
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So Chew Wee, as we learned,
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shoppertainment is poised to grow
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to over a trillion dollars in Asia by 2025.
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And we know that TikTok is such a pioneer
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and an innovator in this space.
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So can you tell us what trends have you seen at TikTok
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regarding shoppertainment?
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So shoppertainment is a kind of content-driven commerce
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that seeks to entertainment and educate first.
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TikTok did not invent this concept,
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we did not coin this term,
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but we have embraced it and further innovated on it.
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So at TikTok platform,
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we see content, culture, and commerce coming together
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to create highly immersive shopping experiences.
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Let me share with you three trends
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that we have observed at TikTok.
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One. Age of content.
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We have entered the age of content.
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So we have seen how audiences evolved
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from the age of knowledge,
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where they were seeking out information,
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searching for information, to the age of social.
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Where a lot of the content you consume
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depends on what your friends are consuming.
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So you consume what your friends consume.
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And people are sharing multiple aspects
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of their life all on social.
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And then that has evolved to now, the age of content,
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where we are seeing this audience
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that is video first, content first,
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and we see a generation of digital natives
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that aren't actively searching for content,
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or relying on their friends for what they consume.
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And TikTok has embraced this and built up a platform
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based on what we call a content graph.
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So what you consume is based
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on the kind of content that you like,
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and you can discover new content,
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and you have a platform to engage with a community
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that is not limited by your social connections.
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Very interesting.
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A second trend that we have observed
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is the democratization of creativity.
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The democratization of content creation.
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So we see that creativity, content creation,
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is no longer the exclusive domain
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of the expert or the professional.
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You don't need a big budget, a fancy studio,
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or highly trained talent to be able to create good content.
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Anyone with an idea, with a smartphone,
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can generate good content.
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And technology has enabled TikTok
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and many other platforms
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to build tools, templates,
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that can empower people to build that.
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At TikTok, we truly believe that anyone can be a creator.
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Finally, I want to talk about the last trend
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that we have observed,
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which is the creativity network effect.
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I think probably you and the audiences
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are probably familiar with the traditional concept
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of the network effect.
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Where every user on the platform
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creates more value for the next user.
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So what we are seeing is that
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creativity, too, is rarely an isolated process.
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And either can rarely be attributed to a single person.
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So, as we saw on TikTok,
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that you have a creativity network effect
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where every additional user make other users more creative.
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Because you can build on somebody's original content,
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and we built features like the duet feature,
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the stitch feature,
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where somebody can create new content
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alongside the original creator.
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And that is how TikTok has embraced the age of content.
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I like it.
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I like the age of content, away from the age of social,
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that's fascinating.
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So Chew Wee, I'll refer back to something you said
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that was very interesting at the start.
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You said that even though TikTok
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didn't coin the term, "shoppertainment",
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you've embraced it and innovated in that space.
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Can you tell us how TikTok is preparing
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to be a leader in this area?
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Sure.
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TikTok is a content platform, an entertainment platform,
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and shoppertainment is very much in our DNA.
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We have built and continued to invest
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in a suite of shopping solutions that brands,
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businesses, and creators can leverage.
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One, it's an area of content.
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So we have built content tools and templates,
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like video editing tools, effects, stickers,
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that businesses and creators
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can easily use to create content.
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Two, is in the area of advertising.
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So we build advertising solutions
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that allow brands to be able to engage with customers
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based on their demographics,
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their interests, their behaviors.
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And we also have advertising formats
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that allow brands to invite a community,
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to invite the customers to participate
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in the brand experience with them.
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One example is branded mission,
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where brands can source content from the community
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by issuing a challenge or a mission
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for their customers to embark on.
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Another example will be in the area
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like interactive features.
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Like interactive add-ons,
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which uses augmented reality
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that allow brands to allow their customers
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to try on their products
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without ever having to step into the store.
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And thirdly, a third area that we are investing in
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is in the area of e-commerce market-based solutions
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where customers can directly complete the transaction
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on the TikTok platform.
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So this is a service, a new service, called TikTok Shop,
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and it is now available in five countries in Asia-Pacific.
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All right, so you can see that we are continuing
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to invest in content, commerce, and creative formats
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to enable this and to embrace shoppertainment.
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So what I have shared is what TikTok has done.
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But the community,
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the community continues to delight and surprise us
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in many ways with their creativity
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and their community collaboration.
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We have also seen trends that emerge organically
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on the TikTok platform.
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One of which is the #TikTokMadeMeBuyIt phenomenon.
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It has since gotten more than 12 billion views globally.
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Wow.
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So it is a trend where users, customers,
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proactively share their product experiences,
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their product reviews online,
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and that has generated significant uplift and offline sales.
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If I could share another trend,
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and this is one of my personal favorites,
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and that is BookTok.
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Have you heard of BookTok?
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No, sounds interesting.
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All right, so BookTok is a phenomenon
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that has caused a resurgence in reading.
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And publishers around the world
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have actually attributed BookTok
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to causing an uplift in book sales.
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Like here in Singapore, for instance,
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some bookstores, like Times Bookstores, for instance,
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have a section dedicated to BookTok
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where they show BookTok recommendations.
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Well, as a bookworm, I have to say, I love that one.
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Check that out.
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And what we always see at TikTok is,
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what happens on TikTok, doesn't stay on TikTok.
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And that is how we have invested in shoppertainment,
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and that has generated behaviors offline.
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Amazing. It's like a network effect, right?
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A snowball or a positive flywheel, if you will.
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Amazing.
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So at TikTok, you work with some of the early adopters
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of shoppertainment as some of the real pioneers.
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Can you share with us some best practices that you've seen
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on marketeers who've got it right, so to speak?
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Amongst the early adopters,
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we have seen businesses from different industries,
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from e-commerce marketplaces, to CPG brands,
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to consumer electronics.
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And we have small businesses and large global brands
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experimenting on TikTok and embracing this story-led,
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entertainment-led strategy.
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If I could share with you some examples of brands
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that has done it really well.
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One such example is Amazon.
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In fact, they recently ran a campaign
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to drive up sales and awareness for the Prime Day sales.
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So Prime Day happens between July 12 to 13,
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where there was the moment where they give the biggest deal
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to their Prime members.
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So what Amazon did was,
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they work with creators like Adrian Bliss on TikTok
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that put their own satirical comedic spin
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to the whole checkout process.
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You need to see it to be able to understand what I'm saying.
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So they also embrace trends on TikTok.
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Like, there's this trend, this face feature sticker.
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Not sure if you've seen it,
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you have the talking eyes and mouth on the product.
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I see.
So they embrace it,
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and they created advertisements
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that you wouldn't have thought was an advertisement
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to drive up sales for Prime Day.
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So that's an example from Amazon.
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Another example that we are seeing,
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and this is a CPG brand from Japan
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from the Kao Corporation, this is a Kate brand Japan,
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that is a makeup brand.
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So what they have did is, they use the interactive features,
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the interactive add-ons that TikTok provides,
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that allows their customers to try on their products,
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like lipsticks.
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So you can try on the different kit, lipstick colors,
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without ever having to step out of your home,
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without ever having to step into the store.
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So this is an example from Japan.
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And lastly, let me share an example from Samsung.
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So this was what Samsung did
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when they were launching a new device,
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the Samsung Galazy Z Flip3.
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So it is a flip phone.
Yes.
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So you flip open the phone.
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So what they did was
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leverage this interactive feature on TikTok
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where a viewer, where a TikTok user,
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can activate elements of it with the hand gesture,
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the hand gesture of flipping the phone.
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Interesting, yeah.
So when you flip the phone,
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the app will respond
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and reveal more information about the phone.
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So that is what Samsung did,
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I think to engage with the community
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and get them to interact with the content.
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Fascinating examples.
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I mean, you've got new age companies,
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Asian brands, international brands,
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you've got a good mix in there.
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So it's fascinating to hear
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that so many marketeers are getting such value
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out of shoppertainment.
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Asian companies, global companies, so many examples.
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I'm intrigued why more marketeers wouldn't do so.
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So what would your advice be, as TikTok,
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for other marketeers on how to unlock
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the potential of shoppertainment?
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There is a attention economy
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where there are so many things
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fighting for people's attention.
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shoppertainment help brands stand out
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and content is a differentiator.
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Nobody wants to be sold to,
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but everyone is open to discovering new content.
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Nobody will say no to entertainment.
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And that is why we see that shoppertainment
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is already 20% of the total GMV in APAC.
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And it's continuing to grow.
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It's growing to 30% within the next three years.
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So what does this mean for marketing leaders?
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Traditionally in marketing,
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we always talk about the four P's.
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Now let's flip that around
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and talk about the four C's instead.
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What are the four C's?
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First C: Customer.
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Focus on your customer. Always start with the customer.
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And we are seeing that customer needs have evolved
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to not just being functional, but also to being emotional.
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And we see that opportunity lies in the latter.
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In the emotional.
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Customers are telling us, advise me, inform me,
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inspire me, educate me, entertain me.
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So brands need to think about how they can do all of that
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while selling their products and services.
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Second C: Content.
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I spoke a lot about content today,
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because we truly, at TikTok,
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believe that that is a differentiator for brands.
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So we encourage brands to develop story-led messaging
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that seeks to entertain and educate.
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Adopt an entertainment-first, storytelling approach,
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commerce-second, approach to truly connect with customers.
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Third: Campaign.
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The third C is campaign.
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So how do you build a campaign around this?
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Targeting the right audiences,
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such that your content can reach the right audience
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when they're in the discovery mindset.
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Finally, the last C: Channel.
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Now that you have built a content, how do you distribute it?
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How do you partner with the right platform,
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test and learn to distribute the content?
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At TikTok, we invite brands, businesses, big or small,
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to collaborate with the TikTok community,
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to work with our users, with our creators,
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and together embrace the age of content
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and embrace shoppertainment.
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I mean, that is a fascinating demystification
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of shoppertainment for marketeers in our audience.
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So thank you for joining us today,
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for helping us understand the four C's,
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and helping us unpack shoppertainment.
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I hope you found this useful.
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I hope, more importantly,
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that you found it educational, entertaining,
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and hopefully commercial for you.
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Thank you for joining us today.