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In Southeast Asia, TikTok will have to flex its innovation chops to tackle growing headwinds. And among all the tectonic shifts, the biggest will be the emergence of AI. Underperforming retail will rebound in China after a disappointing start. China鈥檚 retail sector is showing signs of life.

Moving operations from China to Southeast Asia, the US, or other countries could improve resilience but raise costs in the short term. Being heavily reliant on just-in-time supply chains could cause reduced innovation and disrupted product launch cycles, especially for in-demand goods like AI hardware and consumer electronics.

On today鈥檚 podcast episode, we discuss what a tariff even is, what might happen when they鈥檙e implemented, and how best to prepare for them. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Principal Analysts Paul Briggs and Matteo Ceurvels, and Analyst Rachel Wolff.

The Southeast Asian country banned sales of new iPhones, the Apple Watch Series 10, and new Macs because Apple failed to meet local investment targets. Apple pledged IDR 1.71 trillion ($112 million) but has only invested IDR 1.48 trillion ($97 million).

As Microsoft increases 365 prices in six countries, limited Copilot value and opaque pricing strategies could trigger antitrust concerns and drive users to cheaper tools.

Growth opportunities in emerging markets: TikTok鈥檚 ecommerce expansion, which it hopes will accelerate profits from last year鈥檚 $4.4 billion in gross merchandise sales, focuses largely on its success in Southeast Asia.

TikTok is primarily banking on countries in Southeast Asia to reach its objective, but it鈥檚 not giving up on the US: In May, the Financial Times reported that TikTok had restructured its ecommerce business to focus on the US and the UK. The US is the world鈥檚 second-largest social commerce market after China, generating $68.92 billion in sales this year, per our estimates.

But livestream commerce is showing early signs of promise in Southeast Asia. Nearly 80% of internet users in Southeast Asia had watched at least one live shopping session via any digital platform, and 44% had made at least one purchase in the 12 months prior to July 2022, according to research firm Cube Asia. However, the leading platforms vary widely from country to country.

Southeast Asia drives connectivity growth in Asia-Pacific. Asia-Pacific is the second-fastest-growing region for internet users, accounting for over half of internet users worldwide. Of the 15 countries with the highest internet user penetration this year, nearly 50% will be in Asia-Pacific. For smartphone user penetration, 50% of the top 10 will be in the region.

Actually, the Southeast Asia share of TikTok Shop sales will be 75% this year. So, Southeast Asia is really a key region for TikTok Shop. Bill Fisher:. Sounds like it. It's interesting you talk about some of the other things that TikTok does. I mean, it's a video, short video platform.

Southeast Asia, meanwhile, will see a modest uptick after a shaky 2023. Latin America will be the top region for ecommerce growth, but not overall. It will keep up its 2023 momentum, but stronger physical sales in Central and Eastern Europe mean that region will lead the world in total retail sales growth.

Marketers in countries that benefit from maintaining a good relationship with China, including those in Latin America and Southeast Asia, should be less concerned about a potential ban. Data privacy attitudes and policies also matter. EU governments have historically been stricter than the US on data privacy and security.

Plus, FAST channels offer a return to the linear TV experience of always-on content, eliminating the need to swim through a sea of on-demand content just to find something to watch. Counteracting the streaming fragmentation. With more and more channels being launched and top content providers adding new ad-supported tiers, fragmentation may be a concern for advertisers.

And don鈥檛 be surprised if central banks in other countries in Latin America and Southeast Asia try to replicate Pix and UPI. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client? Click here to subscribe.

After making various tie-ups and investments in Southeast Asia, the company is now focused on Europe, Latin America, and the Middle East. Our take: Adding diversified payment methods should also help Adyen鈥檚 terminal gain traction.

While Southeast Asia shows potential, Mexico is a top contender for US-based retailers to expand online, Droesch said. In 2024, Mexico鈥檚 ecommerce sector grew by 15.7%, with sales reaching $58.89 billion, per our forecast.

The news: Toys R Us parent company WHP Global mapped out what it calls an 鈥淎ir, Land and 厂别补鈥� expansion plan that includes opening up to two dozen flagship stores, as well as developing a new retail format that will appear in airports and cruise ships. The flagship stores鈥攚hich WHP is partnering with Go!

The vision: Empty shelves in the early days of the pandemic put a harsh spotlight on supply-chain vulnerabilities and there鈥檚 no shortage of ongoing issues, such as Houthi attacks on cargo ships in the Red Sea, that have forced retailers to look for opportunities to improve their operations.

The cause: Houthi attacks on cargo ships in the Red Sea forced shipping companies to take longer routes, adding time and cost during a pivotal moment when retailers are stocking up for Q4. The cost: The World Container Index is up 298% year over year to $5,868 per 40-foot container, per Drewry Supply Chain Advisors, and several carriers warned freight rates could climb even higher.

Yet that hasn鈥檛 stopped Temu from seeking to expand its sphere of influence, particularly in Southeast Asia. The retailer has applied three times for a license to operate in Indonesia鈥攖he region鈥檚 largest ecommerce market. So far, it鈥檚 failed to break through, although it could take a page from TikTok鈥檚 book and acquire its way in.

TikTok is set to be the fastest-growing social platform in the Asia-Pacific region this year, with its user base expected to grow nearly double that of Instagram, particularly in Southeast Asia. Everything else you missed this week:. Minority representation in video ads declined in 2022, which could risk alienating diverse populations whose buying power is rising.

Inside Reddit鈥檚 international push: Multilingual tools boost engagement as markets like India and Brazil emerge as key growth drivers for 2025.