TikTok Shop: Future of E-Commerce? How Can Galderma Leverage Tiktok Shop to Increase its Penetration and Improve its Market Share in Indonesia Skincare Market?

Abstract

TikTok was introduced to the Indonesian market in September 2017. Upon its launch, TikTok quickly gained popularity among Indonesian users, especially among the younger demographic, for its short-form video content that allowed for creative expression and entertainment. One of TikTok services is TikTok Shop, an integrated e-commerce capabilities directly within the TikTok app, allowing users to browse, purchase, and sell products without leaving the platform. They launch this service in April 2021. The platform introduced features like shoppable videos and live shopping events, where users could interact with influencers and brands in real-time while purchasing products providing a new and engaging way for Indonesian businesses to reach potential customers and boost sales through interactive and entertaining content. Galderma Indonesia Healthcare is one of the leading companies dedicated to advancing dermatology for every skin story. Galderma strategically its positioned in attractive, consumer-driven segments of the dermatology market, characterized by high growth fundamentals supported by science-based product differentiation and premium positioning. One of Galderma’s brands that is available in Indonesia is Cetaphil. Cetaphil products are available in modern retailers with Health & Beauty channel as the top contributor, followed by general trade and pharmacy channel. Even though available, Cetaphil is still low in in skincare category penetration. This study examines the positioning and promotional strategies of Cetaphil on TikTok Shop using qualitative research methods. Primary data was gathered through expert interviews, while secondary data was sourced from internal company reports, previous research studies, and strategic agency reports.