Micro, small, and medium enterprises (MSMEs) are a cornerstone of the Philippine economy, accounting for 99% of all businesses and providing a significant share of employment, according to the Department of Trade and Industry (DTI). As these businesses navigate the challenges of a rapidly digitalizing world, TikTok Shop has emerged as a vital platform, offering tools and opportunities for MSMEs to connect with customers, expand their reach, and grow sustainably.
Overcoming Barriers for MSMEs
Social commerce has become an essential tool for MSMEs looking to overcome traditional barriers such as high marketing costs and logistical complexities. Platforms like TikTok Shop provide an accessible and cost-effective way for businesses to reach broader audiences. Using features such as short-form videos and live-streaming, MSMEs can connect directly with consumers in authentic and engaging ways.
“There is a shift toward digital platforms that allow businesses to engage directly with consumers,” said Franco Aligaen, Marketing Lead for TikTok Shop Philippines. “TikTok Shop enables small businesses to share their products and the stories behind them, which helps build trust and meaningful connections with customers.”
One example of this is a small business that used TikTok Shop to promote a family recipe for crab paste. Through engaging video content and storytelling, Cley’s Food Products grew from a backyard operation to a full-scale production line, creating jobs and expanding its market across the Philippines. The surge in sales enabled the business to hire up to 15 employees during peak order times, demonstrating the direct impact of TikTok Shop on MSME growth and local employment.
Shoppertainment: Where Content Meets Commerce
A key innovation of TikTok Shop is its focus on shoppertainment, a concept that combines entertainment with online shopping. Through authentic, engaging content, MSMEs can showcase their products while entertaining their audiences, creating an enjoyable shopping experience.
This approach has proven particularly effective in helping MSMEs connect with niche communities and attract loyal customers. By leveraging live streams and creative videos, businesses can demonstrate their products in real time, answer customer questions, and build relationships that go beyond transactions.
Educational Resources Tailored for MSMEs
In addition to providing a platform for product visibility, social commerce platforms also offer educational resources to help MSMEs navigate the digital marketplace. Programs such as TikTok Shop Business School and TikTok Shop Academy offer training on content creation, live-streaming, and other aspects of e-commerce. These resources aim to equip businesses with the skills and knowledge needed to succeed in a competitive online environment.
“TikTok Shop promotes a culture of testing and learning, enabling businesses to refine their strategies based on real-time audience engagement,” Aligaen explained. “These resources ensure that MSMEs are not only visible but also competitive in the fast-evolving digital space.”
The ACE Indicator System, focusing on Assortment, Content, and Empowerment, is another tool MSMEs can use to improve their online presence. By optimizing their product offerings, crafting targeted content, and participating in campaigns like double-digit sales, businesses can scale effectively and reach new customers.
The Role of Storytelling in Business Growth
Storytelling has become a powerful marketing strategy for MSMEs, and TikTok Shop makes it easier than ever to share compelling narratives. Businesses can create short videos that showcase their products, highlight their origins, and connect with consumers on a personal level.
“Storytelling is what makes a business memorable,” Aligaen explained. “When small businesses share the journey behind their products, from family recipes to handmade goods, it creates a sense of connection with the audience. These stories aren’t just marketing; they’re what inspire customers to support local businesses.”
Campaigns like TikTok Shop’s Buy Local, Shop Local amplify these efforts, promoting Filipino-made products and encouraging consumers to support local businesses. These initiatives have helped MSMEs increase their visibility and build stronger relationships with their communities.
Leading MSMEs into the Future of E-Commerce
As the digital economy evolves, MSMEs face increasing pressure to adapt to new trends. TikTok Shop is helping businesses navigate this shift by offering tools for real-time engagement, content creation, and audience targeting. These features empower MSMEs to connect directly with consumers and compete more effectively in a digital-first marketplace.
By combining entertainment, storytelling, and commerce, TikTok Shop provides a unique platform that enables MSMEs to thrive in the evolving landscape of e-commerce. With tools that drive engagement and campaigns that boost visibility, TikTok Shop is helping businesses of all sizes succeed in the digital economy.
Joining the Movement
Interested sellers can easily sign up on TikTok Shop to explore new opportunities, share their unique stories, and achieve their growth goals. The process is quick and straightforward, with sellers required to submit basic information and necessary documentation for verification.
TikTok Shop implements a comprehensive vetting process to ensure that all sellers meet the platform’s high standards, maintaining product quality and compliance with industry guidelines. This proactive approach supports safety and ensures a secure experience for both sellers and customers.
