TikTok Shop overtook Shopee by a three per cent sales volume margin in Thailand during the second quarter of 2026, changing the region's e-commerce market, The Business Times reported.
The narrow victory shows that Shopee's long-standing dominance across Southeast Asia is facing severe pressure. Analysts point to Vietnam as the next likely battleground where TikTok Shop could soon capture the top spot.
Toni Ruotanen, head of South-east Asia markets at marketing firm Havas, estimates that based on TikTok Shop’s current pace of growth, it could overtake Shopee in Vietnam within the next six to nine months. In Vietnam, “TikTok Shop has already overtaken Shopee in the fashion category, while beauty is now evenly split between the two platforms,” Ruotanen told Tech in Asia.
Simon Torring, co-founder of markets insights firm Cube Asia, said that TikTok Shop had already captured the skincare and face-care categories in Thailand six to 12 months prior to the Q2 2026 data.
Thailand’s e-commerce market leans heavily into beauty, personal care, and wellness items, which account for roughly 30 per cent of online retail sales in the country. These specific segments align perfectly with video demonstrations and live commerce.
Paul Srivorakul, CEO of e-commerce enabler aCommerce, confirmed that beauty and personal care led TikTok Shop’s performance in Thailand through the first half of 2026. Higher profit margins in these categories give brands the financial room to fund affiliate creator commissions.
Affiliate marketing powered by short videos and livestreams accounts for approximately 32 per cent of TikTok Shop’s total gross merchandise volume across Southeast Asia, according to Srivorakul. AB Foods assistant manager for e-commerce Izhhar Gemilang added that fashion, beauty, and snacks naturally excel through livestream affiliates.
Consumer spending on beauty and personal care in Vietnam reached nearly 74.4 trillion dong, equivalent to US$3 billion, in 2025, marking an annual increase of nearly 30 per cent according to data platform Metric.vn. TikTok Shop accounted for roughly half of those sales in the fourth quarter, staying slightly ahead of Shopee’s 48 per cent.
Vietnam features prominent creators like Hannah Ohlala and Vo Ha Linh, who command millions of followers and drive substantial retail volume. Ohlala alone has generated over 10 per cent of monthly beauty sales volume in the local market, Torring stated.
Conversely, Singapore remains firmly under Shopee’s control, holding 52 per cent of the market share as of 2025. Lazada trails at 36 per cent, while TikTok Shop holds only 6 per cent, based on a report from Momentum Works.
Singapore consumers rely heavily on traditional mall shopping and face-to-face retail habits. Ruotanen said that many brands hesitate to invest in the smaller Singapore market because establishing a TikTok Shop presence requires dedicated budgets for affiliate payouts, livestream production, and ongoing content creation.
The feature attempts to capture the discovery-driven shopping habits native to TikTok.
Sea CEO Forrest Li announced during the company’s Q3 2026 earnings call that ShopeeVIP membership surpassed 21 million at the end of September, growing 40 per cent from the previous quarter and accounting for nearly 25 per cent of the platform’s gross merchandise volume.
Instant and same-day delivery options accounted for nearly 15 per cent of orders in Bangkok and surrounding areas, reflecting a push toward logistical efficiency. Torring predicts that Shopee will raise its seller take rates by 5 to 7 per cent next year in contested sectors to fund aggressive platform voucher campaigns.
“I believe that Shopee sees South-east Asia as a cannot-lose region,” Torring said. “It will become more aggressive at fighting back.”
