KUALA LUMPUR: Momentum Commerce Sdn Bhd, a global e-commerce enabler, has developed an e-commerce solution in partnership with TikTok to enable local small and medium enterprises (SME) and brands increase revenue amidst rising cost of business.
Momentum Commerce is an authorised TikTok Shop partner in Malaysia which helps local brands take advantage of the app’s user growth and is currently partnered with almost 30 brands among which are Nivea, Eucerin, Wardah and Al-Ikhsan Sports.
Its chief executive officer Hans-Peter Ressel said his team worked with one of the biggest Indonesian beauty and skincare Groups, Wardah, to grow its TikTok following by 36 times within just one month. It currently has over 60,000 followers.
“Our team of experts are able to strategise the right mix of frequency of livestreams and short video production with the most suitable influencers and content type, to ensure the app is working at its optimum for the brand.
“We are seeing a sales conversion rate of more than five per cent (on the app) which exceeds the business-as-usual conversion rates on marketplaces.
“Obviously by doing big campaigns like 11.11 and 12.12, these conversion rates go up a lot,” he told Bernama recently.
With a team of 70 people, Momentum Commerce ramped up efforts on TikTok Shop to help many local brands as well as SMEs increase their revenue, he said.
“Now there are a lot of our brands that want to achieve the same results (replicate Wardah’s success story) and we are really ramping up all TikTok Shops for our brands — with a tremendous focus on this service,” he said.
Ressel also emphasised that they are seeing TikTok Shop e-commerce revenue contribution for brands exceeding 10 per cent, adding that TikTok Shop revenues are expected to continuously grow to make up more than 50 per cent of e-commerce revenue by 2023.
Sharing on how he started Momentum Commerce, Ressel who was the former Lazada chief executive officer said after leaving Lazada in 2018, he saw an opportunity for local brands and SMEs to grow bigger as e-commerce in Southeast Asia boomed.
“Together with Eddy Yap, my co-founder, I saw that in the e-commerce journey whether you are local or an international brand, there will always be some areas in the value chain of e-commerce that you are not very strong at and need help.
“There’s so much innovation happening in the industry and it’s moving so fast that there will always be the need for you to be an early adopter of certain initiatives, innovations, and tools and we felt with our combined expertise we could help brands accelerate their success in e-commerce in the region,” he said.
Ressel and his team started experimenting with TikTok in late 2019, gradually increasing its focus as the platform took off and proved to deliver growth and success for brands in a very short time.
“We have developed a 360-degree solution for the brands, starting with live streaming services, content creation, and short videos.
“We have our own production studio for the livestreams and the short videos. We also take over the management of key opinion leaders (KOL) and talent.
“We do all the content marketing, we manage the TikTok Shop, data analytics and logistics to get the products to customer’s doorstep.
“The right mix of content, livestreams, and frequency is the key to make the algorithm work for you,” he stressed. – BERNAMA
