Tiktok in talks with GOTO on possible partnership

A Chinese social media behemoth Tiktok is reported to be in talks on possible partnership with GOTO's e-commerce, Tokopedia in a move to revive its e-commerce feature, TikTok Shop that is subject to ban of regulations on e-commerce-social media separation. While the possible partnership scheme remains sketchy, media reports that the deal, that is likely to be in a form of investment in JV, could be concluded within weeks. (Source: Bloomberg, KBVS Research) Comment: As we are waiting for more developments on the details, we are sanguine that the possible partnership will be positive and probably significant boost for Tokopedia and vice versa, as the earlier could take benefit from TikTok superior algorithm, which is in-line with Tokopedia's aspiration to expand its ads revenue as well as strengthen its positioning especially against Shopee in e-commerce realm. Meanwhile, TikTok may also benefit from Tokopedia's logistics and market access. Tokopedia has previously been reported to have its market share decreased amid increasing competition in e-commerce especially with the presence of TikTok Shop.