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Tiktok Sellers In Indonesia Have A Booming Business In Hijab And Handbags

In Indonesia, the Chinese social networking platform has more than 106.9 million adult members.
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China’s social media platform has more than 106.9 million adult users in Indonesia. Inggit Pambudi and his wife Mudya Ayu earn a living making and selling hijabs. As TikTok user Hijab mudy mudy, the couple sell their products in livestreams on the popular video app.

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Inggit Pambudi and his wife Mudya Ayu, like many others in his village, make and sell headscarves. The couple is part of the thousands of home industries in Cicalengka, West Java’s district known as “Kampung Hijab,” or “Hijab Village.”

Cicalengka specialises in modest clothing, which is in high demand in Muslim-majority Indonesia. The majority of Cicalengka’s production is aimed at brick-and-mortar wholesale markets throughout Southeast Asia, but Pambudi and his wife are banking on a more modern marketing strategy. The couple sell their products in livestreams on TikTok 24 hours a day, according to TikTok user Hijab mudy mudy.

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Tiktok Sellers

Pambudi, 25, said Al Jazeera, “We don’t even have a real store.” “When I saw that I could livestream and sell my items on TikTok, I believed it was a fantastic opportunity for us.”

TikTok is huge in Indonesia, the world’s fourth-most populated country with over 275 million people. According to data from July, the Chinese social networking platform has 106.9 million adult users in Indonesia, making it the app’s second-largest market behind the United States.

TikTok, which began as a music video platform combined with a social network, entered Indonesia in 2017. Following the launch of its livestreaming e-commerce function during Ramadan, the app began storming the country’s lucrative e-commerce scene in 2021, after authorities briefly banned it over content deemed pornographic and blasphemous.

During the holy month, the app’s viewership increases because many Muslims stay up late to eat their last meal of the day before fasting.

TikTok reached out to Pambudi during Ramadan last year.

“Someone contacted me; he’s like TikTok’s’relationship manager.'” Pambudi stated, “He told me that I could do live shopping on the platform.”

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Hijabs and Handbags

However, live shopping was unexplored terrain.

“The relationship manager taught us how to broadcast. “From how to use the features to selecting backdrops, lighting, equipment, and what to say to consumers,” Pambudi explained. “The entire training took around five months.”

The pair began with a few hours of livestreaming every day in the morning and afternoon, with Pambudi behind the camera and Ayu on screen.

However, they quickly noticed that nocturnal streaming increased their sales.

“We attempted to go live after 8 p.m. “That’s when people have gotten home from work, done their Isha (evening prayer), and are usually relaxing at home while scrolling on their phones,” Pambudi explained.

“The sales were excellent. People were purchasing. Initially, we concluded our lesson at 11 p.m. But then we decided to keep going till Fajr (morning prayer) time, and the response was fantastic.”

Pambudi stated that their peak period is usually before sunrise, when hundreds of spectators join the broadcast. Viewership can reach thousands during exceptional occasions such as National Online Shopping Day.

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Booming Business

Pambudi’s shop now sells up to 30,000 headscarves every month, a 30-fold increase from before he started livestreaming. “I now have ten hosts taking turns livestreaming,” he explained. “Every day, we work three eight-hour shifts.” In Indonesia, live shopping is becoming increasingly popular. According to a recent poll conducted by market research firm Ipsos, 71% of Indonesian customers engaged in live shopping events, with 56% making purchases.

The trend could open doors to new customers for Indonesia’s nearly 65 million small and medium-sized businesses (SMBs), 98 percent of which are micro-enterprises with less than 300 million Indonesia rupiahs ($19,500) in annual sales.

According to Semuel Abrijani Pangerapan, director-general of Information and Communication Technology Applications at Indonesia’s Ministry of Communication and Information Technology, over 21 million Indonesian SMBs, or 32% of the total, promote their products on online marketplaces. The government plans to get at least 30 million SMBs online by 2024.

FAQs

TikTok was banned for a week in Indonesia in 2018, but the ban was lifted after the company agreed to censor some of its content. Concerns about pornography, inappropriate content, and blasphemy prompted the ban.

According to industry executives, Indonesians buy 1.02 billion hijabs every year, paying over $6.09 billion. However, just 25% of the hijabs purchased by Indonesians are made domestically, representing a squandered potential for the economy.

In 2022, revenue in the Handbags category is expected to be $0.93 billion. The market is predicted to expand by 6.67% every year (CAGR 2022-2026). In worldwide comparison, the United States generates the largest income (US$11,150.00m in 2022).

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