The TikTok Effect on Tokopedia: Success or Struggle?
Imagine your favorite local e-commerce giant suddenly being taken over by a global powerhouse like TikTok. That’s exactly what happened when Bytedance, TikTok’s parent company, acquired a majority stake in Tokopedia. The aftermath? Job cuts, cultural clashes, and a complete overhaul of work dynamics. But amid the chaos, could there be a silver lining for Tokopedia and its employees?
What happens when a powerhouse like Tiktok takes over a beloved local company like Tokopedia? The answer is a mix of excitement and unease, especially for the employees caught in the middle.
Tokopedia, an Indonesian e-commerce giant, merged with Gojek in May 2021 to form a new holding company called GoTo. It’s one of the most visited e-commerce platforms in Indonesia. But when Tiktok’s parent company, Bytedance, bought a seventy-five percent stake for one and a half billion dollars, things began to change rapidly.
Just six months after the acquisition, four hundred fifty Tokopedia employees found themselves without jobs, representing nine percent of the workforce. The remaining staff now had to adapt to the work culture dictated by Bytedance, a company known for its demanding and fast-paced environment.
In late 2023, optimism was high. Bytedance, valued at two hundred twenty-five billion dollars, had a history of turning platforms into global sensations. Remember Musical.ly? Bytedance bought it in two thousand seventeen, merged it with Tiktok, and transformed it into a sensation with one hundred million users. However, this also meant the end of Musical.ly as an independent entity.
For Tiktok, acquiring Tokopedia was a strategic move to revive its e-commerce ambitions in Indonesia after the government shut down Tiktok Shop last October. This shutdown affected six million businesses that relied on the platform for sales. Now, Tokopedia, with its deep understanding of the Indonesian market, was Tiktok’s ticket to staying relevant.
However, the cultural clash between Bytedance’s efficient, lean operations and Tokopedia’s traditional structure led to uncertainty. Layoffs hit hard, particularly in teams like social media, creative marketing, product design, and product management. Those who remained had to juggle multiple projects at once, with tasks expected to be completed in half the usual time.
The pressure to impress the new bosses from Bytedance was intense. Bytedance employees often stayed in the office until nine or ten p.m., far beyond Tokopedia’s original office hours. Rumors of adopting the “nine-nine-six” work schedule — working from nine a.m. to nine p.m., six days a week — added to the stress, even though it wasn’t officially mandated.
Despite the challenges, some Tokopedia employees saw opportunities. Bytedance’s superior analytics improved product recommendations on ShopTokopedia, the rebranded Tiktok Shop, increasing the chances of impulse purchases. Yet, many felt their contributions were undervalued, and morale was at an all-time low.
ShopTokopedia now operated on Bytedance’s infrastructure, making many Tokopedia roles redundant. However, Tokopedia’s well-established ecosystem, including Gopay and “buy now, pay later” options, remained valuable to Tiktok.
Analysts predicted that by two thousand twenty-five, the combined gross merchandise value (GMV) of Tokopedia and ShopTokopedia could reach thirty-five billion dollars, capturing a forty-three percent market share. This potential growth showed the value of the acquisition, despite the workplace turmoil.
Bytedance’s data-driven approach also opened new possibilities. With access to vast amounts of user data, they could tailor products to Indonesian consumers’ preferences, potentially boosting online lending services and integrating with digital banks like Bank Jago.
The acquisition’s impact on GoTo, Tokopedia’s parent company, was mixed. GoTo’s stock price dropped significantly after the acquisition announcement, but analysts predicted operational losses could decrease by twenty-four percent in two thousand twenty-four due to efficiency gains from the changes at Tokopedia.
As Tokopedia navigates this transformation, one question remains: How will its employees adapt to these new demands and the evolving culture? And what does the future hold for Indonesia’s e-commerce landscape?
Ultimately, the story of Tokopedia’s takeover by Tiktok is a tale of change, adaptation, and the clash of different corporate cultures. It shows how a significant acquisition can reshape a company’s future, bringing both opportunities and challenges.
So, what happens next for Tokopedia and its employees? Only time will tell. How will they navigate the balance between maintaining their unique identity and adapting to Bytedance’s new world order?
References
ByteDance strikes deal with GoTo to save Indonesian TikTok shop. (2023, December 5). The Business Times.
Park, K. (2023, December 11). TikTok to invest $1.5B in GoTo’s Indonesia e-commerce business Tokopedia. TechCrunch.
Reuters. (2024, June 14). After deal with Tokopedia, ByteDance confirms its layoff plan in Indonesia. Business Standard.
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