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Made Gita Nadya Ayu Ariani: Opportunities and Threats of Project S TikTok for MSMEs

Surabaya – TikTok is known to have an initiative in the form of Project S TikTok. The initiative aims to expand online retail services through TikTok Shop. Through TikTok Shop, ByteDance’s parent company can sell their own products.

Of course, this is a concern in itself because many Micro, Small and Medium Enterprises (MSMEs) use TikTok to livestream sales.

So that TikTok can easily access sales information for these MSME products.

Management lecturer at the Faculty of Economics and Business, Airlangga University, Made Gita Nadya Ayu Ariani SE MSM highlighted this. According to her, there are opportunities and threats for MSMEs through the emergence of Project S TikTok.

In terms of opportunities, MSMEs will find it easier to reach the public at a lower cost through livestreams on TikTok.

However, TikTok has also planned Project S where the company will produce its own goods by utilizing information on market conditions in Indonesia.

“The concern of MSMEs is TikTok as a potential competitor because this platform has access to customer information and the ability to produce product duplication with the help of factories in China,” he explained, in Surabaya, Tuesday (07/18/2023).

Gita suggested that MSMEs can compete by improving the quality of products sold. Products produced in China often have a connotation of poor quality and require a long distribution time to reach Indonesia.

Therefore, MSMEs need to make improvements by asking for feedback from customers to continuously improve product quality.

“MSMEs can compete with mass-producing competitors by taking advantage of opportunities by making products tailored to customer preferences so as to create unique product distinctiveness,” he said.

Although Project S has arrived in Indonesia, MSMEs can still utilize livestreams on TikTok to build emotional connections with customers and educate the market.

However, keep in mind not to mention ingredients or recipes that are confidential to the producer.

Gita said that the government needs to keep up with technological developments and develop clear regulations for online commerce in Indonesia.

This step is considered important to maintain the economic resilience of MSMEs by limiting product imports and maintaining domestic products.

With adequate regulations, MSMEs can be protected and have a better chance of facing competition in the digital era.

The government can supervise the import of goods with customs duties and implement local component requirements according to the Indonesian National Standard (SNI).

“This aims to protect MSMEs and maintain fair competition in the market,” he concluded. (MC Diskominfo Prov Jatim /hjr-mad/toeb)

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