ASIA BUSINESS OUTLOOK9JULYTIKTOK EXPANDS E-COMMERCE TO JAPAN AMID GLOBAL DIVERSIFICATIONTencent Cloud, the cloud computing arm of Chinese internet titan Tencent, reaffirmed its commitment to support South Korea's digital transformation by leveraging AI and media technology at its Tencent Cloud Day summit in Seoul on July 2. The conference, attended by over 200 industry professionals and executives, highlighted Tencent Cloud's innovative solutions for gaming, live streaming, and broader business applications."The increasing need for high-performance AI and cloud-native applications has made Tencent Cloud to leverage its rich expertise to assist Korea's top companies in integrating innovation with their creativity," said Jeongpil Heo, Tencent Cloud Korea Country Manager.Tencent Cloud highlighted its innovative technologies covering multi-cloud computing, 3D virtual scene generation, digital avatars, and real-time communication solutions. These technologies are already being used extensively by South Korea's best gaming and livestreaming operators. "Tencent Cloud has consistently introduced cutting-edge solutions and outstanding localized services to Korea, forging close collaborations with great potential to support a broad range of industries," said Poshu Yeung, Senior Vice President of Tencent Cloud International.In addition, Tencent Cloud is joining forces with local reseller partners such as LG CNS, SK C&C, Megazone Cloud Corporation, TK101 Global Korea, and CJ Olivenetworks to speed up AI-led transformation for Korean businesses. Its in-house large AI model, Hunyuan, has achieved milestones in millisecond-level image creation and 3D architecture and ranks among the world leaders on Chatbot Arena.Outside Korea, Tencent Cloud's Go-China program is assisting local businesses in expanding into China leveraging Tencent's infrastructure, regulatory knowledge, and its WeChat mini-app ecosystem. "By strategic collaboration and innovation-driven solutions, we are committed to assisting enterprises to expand into new markets with confidence," said Nucky Fand, General Manager of Tencent Cloud International. TikTok has officially launched its e-commerce platform in Japan, marking its 17th market entry and reinforcing its strategy of geographic diversification amid ongoing regulatory pressures, especially in the U.S.With 33 million monthly Japanese users, the platform is leveraging content popularity to establish a shopping ecosystem before potential restrictions limit global expansion. This move comes as TikTok Shop gains traction worldwide--55 million users in the U.S. made purchases via the platform in 2023, with numbers expected to grow by 67 percent by 2026.The expansion into Japan's $186.93 billion e-commerce market, projected to reach $504.15 billion by 2030, pits TikTok against established giants like Amazon and Rakuten.Unlike traditional platforms, TikTok's model thrives on content-led commerce, where 49 percent of users say TikTok influences their purchase decisions. The platform has seen high impulse buying behavior, driven by live shopping events, creator partnerships, and authentic brand storytelling. Its success in markets like Thailand and Vietnam with similar strategies underscores the potential in Japan.Chinese platforms like Temu, Shein, and Alibaba have also entered Japan, signaling intensified competition. TikTok's edge lies in transforming passive viewership into active purchases, redefining how Japanese consumers engage with online shopping. TENCENT CLOUD SHOWCASES AI INNOVATION TO BOOST KOREAN DIGITAL TRANSFORMATIONKey Highlights· TikTok enters Japan's $186B e-commerce market, its 17th global launch.· Focus on content-driven shopping over traditional product searches.· Competes with Amazon and Rakuten, using impulse-led buyer behavior.
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