COVID-19 spending behaviour drives digital change in Southeast Asia
The former regional manager at Shopee Ltd labelled the dominant players in the e-commerce space as Lazada Group and Shopee, which have both logged an increase in higher GMVs (gross merchandise values) since the outbreak. Notably, Shopee and Lazada have introduced “innovative” support packages to sellers during these volatile times, which the specialist said would be boon to business through engendering long-term client loyalty.
Shopee’s growth in relation to broader consumer trends, such as the widespread move by SMEs to digitalise their businesses, was also discussed. “We know that SMEs make up close to 90%, or 99%, of the Southeast Asia economy, and SME sellers are realising that digitalising their business is the way forward to remain sustainable in the long term,” the expert said.
With Shopee’s Q1 GMV having stood at USD 6bn and revenue totalling USD 300m-340m, the Interview considered its revenue ceiling in Southeast Asia. It also unpicked the company’s B2C and C2C strategies. Although the company has successfully allowed B2C and C2C to coexist on its platform, it’s focused on growing the former, where it can charge commission to sellers. The expert also elaborated on how Lazada and the other regional e-commerce players are approaching the B2C segment.
The drivers of seller engagement, which has risen sharply amid the pandemic, were also discussed in the Interview. Other areas of focus were the growing prevalence of e-commerce enablers, which help businesses manage their operations, and the Shopee Mall model.
To access all the human insights from Third Bridge Forum’s Shopee – B2C Strategy Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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