What: While Indonesian regulation was a premiere, and some European countries might follow suit, TikTok is actively looking for ways to go around regulation.

Why it is important: Department Stores can not count on regulation to escape TikTok and need to polish their competitive advantages instead.

TikTok, owned by Beijing-based ByteDance, is devising strategies to sustain its ecommerce arm in Indonesia, which is its largest market. This move comes after Jakarta banned transactions on social media platforms, a decision seen as primarily targeting TikTok's shopping platform launched in Indonesia in 2021.

TikTok's response includes the idea of creating a separate online commerce platform distinct from its video app, to appease regulators.

The ban impacts approximately 6 million sellers and nearly 7 million influencers on TikTok Shop in Indonesia.

Previously, ByteDance had aspirations of achieving around $6 billion in gross merchandise value in Indonesia for 2023. Indonesia was the foremost and most significant market for TikTok Shop, indicating a potential model for other markets. Still, ByteDance has had challenges in the west replicating the popularity of its in-app livestream shopping model.

Management is considering partnerships with local retail entities, such as technology leader GoTo, to resume ecommerce operations. Concerns exist about the implications of creating a separate app for other markets, particularly if it sets a precedent for markets like the U.S.

Some analysts believe TikTok should abandon its Indonesian ecommerce ambitions to prioritize opportunities in larger markets like the U.S.

TikTok shops around for options in wake of Indonesia app ban