In response to the uncertainty of the U.S. market and its need to diversify its growth strategy, TikTok urgently needs to find new growth points. Spain, as an e-commerce hotspot in southwest Europe, is becoming an ideal choice for TikTok to expand its business. After AliExpress and SHEIN have gained a foothold in Spain, TikTok is also aiming at this "battleground".
TikTok Spain is open for closed beta
Previously, TikTok's parent company ByteDance decided to postpone the planned launch of shopping platforms in Spain, Germany, Italy, France, Ireland, Mexico and Brazil, and will go all out to increase its presence in the US market. When the industry thought that the opening plan of the new European site was temporarily shelved, TikTok Shop quietly accelerated the layout of the two new sites.
Recently, a seller broke the news that he saw the registration entrances of the Spanish and Irish sites in the background of TikTok Shop Seller Center. However, after TT123 verification, it was found that the entrance is still in the internal testing stage, and merchants need to obtain a directional invitation code before they can settle in.
According to preliminary information, for the Spanish site, the relevant seller said that it is currently necessary to use local information to open it, and it needs to have three conditions: local ID card or passport, Spanish business license, and local identity tax card. However, the specific requirements and procedures for entry still need to be officially released by TikTok Shop for more detailed explanations.
With the announcement of TikTok Shop's upcoming landing in the Spanish market, this marks the platform's in-depth layout of the Spanish-speaking market, opening a door to new opportunities for global sellers.
Innovative operating model
In Spain, TikTok Shop will implement an innovative operation model that combines local and fully managed, aiming to make full use of its huge local user base, seamlessly integrate e-commerce business into the social media ecosystem, and create a unique shopping experience.
By adopting a localized operation model, TikTok Shop can not only better adapt to the characteristics of the Spanish market, but also provide local users with services that are more suitable for their needs.
At the same time, the fully managed model further simplifies the merchant's engagement process. In this model, the platform is responsible for key links such as store operation, logistics, and after-sales, while merchants only need to focus on product supply and quality control.
The core advantage of the fully managed model is that it allows merchants to "travel light" and leave the burden of operation and sales to the platform, thereby freeing up more energy for supply chain optimization and product quality improvement. This model with a clear division of labor is especially suitable for factories, integrated industrial and trade enterprises and traders with a strong supply chain foundation, helping them to reach overseas markets in a more efficient and convenient way.
Combining the advantages of localization and full hosting, the operation model of TikTok Shop Spain is expected to attract a group of large sellers who have achieved good results on other platforms to join, which not only reduces their operational pressure, but also improves the shopping experience on the user side.
For merchants who are interested in expanding the Spanish e-commerce market, entering TikTok Spain is undoubtedly a strategic choice full of opportunities, opening a window to new markets for them and injecting strong impetus into brand growth.
So, among many European countries, why did TikTok choose to open the two sites of Spain and Ireland first?
The market potential of the new site
According to Statista, the total population of Spain will reach 47.98 million in 2024. It is expected to reach 48.61 million in 2028.
Spain has an extremely high internet penetration rate of 94% and 43.93 million internet users. Such high internet penetration provides a good basis for the development of e-commerce and social media in Spain.
At the same time, Spain, as the fourth largest economy in the European Union, has a large online buyer base.
According to Statista, the frequency of Spanish consumers is relatively high, and the frequency of online shopping in Spain in 2023 is between once a week and once a month. In addition, more than 9 percent of Spaniards have had the experience of online shopping, and more than 7 percent of Spaniards have had the experience of cross-border shopping, and Spaniards have never excluded foreign e-commerce platforms, and the most popular foreign e-commerce platforms are mainly concentrated in the United States and China.
Source: Statista
At the same time, Spain is the thirteenth largest e-commerce market in the world and one of the fastest-growing markets in Europe.
According to Statista, Spain's e-commerce penetration rate will be 46% in 2024, ranking eighth in the world. It is estimated that by 2029, its e-commerce penetration rate will reach 58.05%. The development prospects of its e-commerce are broad and the development potential is huge.
Source: Statista
According to a survey released by Statista in March 2023, TT123 learned that 82% of people in Spain are aware of TikTok and spend about 79 minutes of daily use of TikTok.
The dynamism of the Spanish market is remarkable, with TikTok users being highly active and investing a significant amount of time, indicating the huge consumer and market potential behind it. Perhaps it was based on the insight into these positive signals that TikTok decided to enter the Spanish market. I believe that TikTok not only focuses on the current market opportunities, but also sees the unlimited growth potential of the Spanish market in the long-term planning.
After understanding the current development status of the e-commerce market in Spain, let's take a look at the e-commerce market in Ireland.
According to Statista, Ireland has a total population of around 5.32 million.
Its per capita reached $106,000 in GDP2024 and is expected to reach a staggering $124,000 or more by 2029.
As a highly developed capitalist country, in addition to its extremely high GDP per capita, its Internet penetration rate has also reached a staggering 99%, with 4.99 million Internet users.
Such a high Internet penetration rate has driven the development of its e-commerce industry and social media industry.
In 2021, 70% of Irish people made purchases via the internet, and e-commerce sales accounted for 19% of Ireland's total retail sales. According to a survey by PayPal, the average amount of online shopping in Ireland in 2021 was 503 euros, an increase of 40% compared to 2020. At the start of 2023, social media penetration in Ireland reached 79.8%, with 4.02 million social media users.
It can be seen that Ireland and Spain, with their extensive user base and deep social cultural influence, have built a solid user base for TikTok to deploy e-commerce business locally. These two countries not only have high user activity, but also have a high level of acceptance and dependence on social media, which undoubtedly provides fertile ground for TikTok's global e-commerce strategy.
Write at the end
TikTok's deepening layout in the European market is not only intended to alleviate the uncertainty caused by the U.S. market, but also adds new impetus to its global expansion blueprint. By opening up the markets in Spain and Ireland, TikTok Shop is opening up new growth paths and expansion opportunities for cross-border e-commerce sellers, especially for brands eager to tap the potential of the Spanish-speaking market.
However, from the beta phase to the full launch, it often takes a certain period for the official operation of a new site. Therefore, it is recommended that sellers maintain a cautious and optimistic attitude, on the one hand, continue to pay attention to market dynamics, and on the other hand, they should focus on the deepening of the existing market and avoid blind rashness. While ensuring the steady development of existing businesses, we will gradually explore and prepare for the challenges and opportunities of new markets to achieve more sustainable and diversified business growth.