Caption: CEO Li Xiaodong expects the group to achieve full-year profitability for the first time Source: The Business Times
According to the Business Times, Li Xiaodong, founder and CEO of Shopee's parent company, Sea Limited, expects the group to move towards its first full-year profit since going public as scheduled.
01 The Verge
As Donghai Group approached the milestone of full-year profitability, it faced the fiercest competition in history. On December 11th, TikTok announced that it has become the new controlling shareholder of the e-commerce entity PT Goto Gojek PT Tokopedia, which means that Shopee's previous opponents have now upgraded their "equipment" and will make a comeback
The first ring match to start is 1212 big promotions.
Source: katadata
Shopee early for 1212 ready. It is reported that Shopee in this 1212Before the start of the promotion, the Double 12 product selection strategy has been releasedto help sellers promote new orders. ExceptProvide a no-threshold shipping couponIn addition, the platform has also prepared a specialized3% off Christmas offerto attract more consumers to join. In addition to that, as this yearKey live broadcast projectsShopee also provides consumers with:Coupons as low as 3% off
Last year, in Malaysia alone, more than 23 million coupons were claimed by sellers. This year, the coupon game has been taken to the next level, and it is also hoped that this method can increase consumer engagement.
In addition, Shopee doubled down on Shopee Live and launched a new round of advertising incentives, bringing more growth momentum to the platform. Many sellers seized the opportunity and used live streaming to achieve explosive growth during the big promotion.
The results were very remarkable, and on the day of the promotion, 12 million items were sold through Shopee Live within 2 minutes of the openingMore and more cross-border sellers are using Shopee Live to bring goods on the same dayThe number of cross-border live broadcast orders has risen to 54 times that of normal daysIn the first 2 hours of the promotion, the number of cross-border orders increased by 17 times.
Source: Shopee
New cross-border sellers ushered in the highlight moment at the end of the year, and the number of orders climbed to 24 times that of normal days；Cross-border brands also delivered outstanding answers, and the number of orders increased by 7 times that of normal days.
Shopee, known as the No. 1 e-commerce platform in Southeast Asia, is by no means in vain. Take the Vietnamese market as an exampleSince its establishment in 2016, Shopee has been pursuing the strategy of "low price first, traffic first".In 2017, it overtook Lazada, which was established in 2012, becoming the largest e-commerce platform in Vietnam in terms of traffic, in 2019, GMV surpassed Lazada in an all-round way, and the expansion rate is very amazing.
According to the latest report released by Younet ECI, an e-commerce data analytics companyIn November, in terms of GMV market share, Shopee was 783% (equivalent to VND 90,420 billion) shareFault leadingIts dominant position in the Vietnamese market has once again been demonstrated. After Shopee, TikTok Shop ended with 11The 1% share ranks second, followed by the respective share. 9% share of Lazada and Tiki.
At the same time, the opponent TikTok did not let up in the slightest.
This time 12 in Southeast Asia12 big promotions, TikTok ShopIntegrate the resources of the five countries to promote and release subsidies such as commodity subsidies and super-large discount coupons. At the same time, in the shelf field and the content field, it will give merchants the best opportunities and value-added rights. The data shows that compared to the same period in December last year, cross-border GMV (gross merchandise turnover) achieved a staggering 493% growth, with a completion rate of 108%.
It is especially noteworthy that:Single-day cross-border sales have increased by 580%. GMV increased by 925% in Thailand, 614% in Vietnam, 444% in Malaysia, 377% in the Philippines and 152% in Singapore. During the big promotion, the number of TikTok Shop live broadcasts exceeded 200 million, and the number of short broadcasts exceeded 1 billion.
Caption: Double 12 promotion of cross-border GMV soared Source: TikTok Shop Southeast Asia e-commerce.
After joining forces with Tokopedia, TikTok Shop has made a number of policy updates in response to competition, and for more details, please refer to "TikTok&Tokopedia Trial Period Starts Today!".Indonesia** Turning on the green light, pulling the alarm at the same time" After TikTok returned to Indonesia, the Belanjaditiktoklagi hashtag "TikTok Shop is back online" has been viewed more than 500 million times. In addition to that,In tiktok x tokopedia 1212 Local product transactions increased 19x during the discount campaign.
The alliance of the two companies made Shopee feel even more pressure.
Back at the beginning of the year, SEA, the parent company of Shopee, which had been in a loss-making state, reduced sales and marketing expenses by 61% to 4$73.6 billion, while Shopee has largely exited its global expansion plans, closing operations in India and Europe, and focusing on key markets in Southeast Asia, Taiwan, and BrazilThe first profit in the first quarter is the first dawn after Shopee came out of the darkest moment.
Among them, the revenue of the e-commerce platform Shopee was 2.1 billion US dollars, a year-on-year increase of 318%，This was primarily due to strong revenue growth in core markets. Core market revenue, which primarily consists of transaction-based fees and advertising revenue, increased 53% year-over-year9% to $1.1 billion. At that time, CEO Li Xiaodong's wealth increased by 9 overnight$1.9 billion.
In addition,Shopee officially launched a limited-time free Shopee advertising service last monthIt aims to improve and give full play to the professional comprehensive marketing service capabilities of the best merchants in the Shopee advertising system through training and certification, so as to help Shopee sellers achieve the best effect of advertising, and then increase store traffic and sales.
In response to two strong competitors, TikTok and Temu, which have been involved in the Southeast Asian market, Shopee has always adopted an "offensive defense" strategy. In September this year, Li Xiaodong, the founder of SEA Group, issued a letter to all employees, calling on all employees to enter the "all-out battle mode" and directly target TikTok Shop.
02 The hegemony is hard to shake
Although Shopee made a profit in the first and second quarters of this year, it fell back into the red in the third quarter to the end of September. As of now, the group has not disclosed any financial details for the fourth quarter. But all kinds of data show that Shopee's hegemony is difficult to shake.
According to the latest research by IPSOS,Indonesian sellers earn much more profit on Shopee than many e-commerce platforms such as TikTok Shop and Tokopedia. In addition, Shopee is also the e-commerce platform that brings the most sales to the best sellers.
Specifically, in:Among the platforms that provide sellers with the highest profits, Shopee ranks first with a market share of 59%.This was followed by Tokopedia (20%), TikTok Shop (8%), and Lazada (7%). Among the platforms that bring the most sales to sellers, Shopee still ranks first with a market share of 65%.This was followed by Tokopedia (16%), TikTok Shop (9%), and Lazada (6%).
Caption: Data of various e-commerce platforms in Indonesia Source: ipsos
In addition to performing well on these indicators,Shopee ranks first in many data such as sellers' hearts ranking and platform loyalty. For specific data details, please refer to "Hunting Southeast Asia, E-commerce Platforms Enter PK White Heat, Who is Running Together, Who is the King?".(Part I)" Part II
"I think we can thrive in 2024, especially because we enter the year with confidence and financial strength," Li said in an email seen by The Business Times. He added that by November this year, the group had seen early gains from reinvesting in growth, with quarterly cash also increasing.
Although under the continuous impact of economic headwinds, the data disclosed in the third quarter of 2023 financial report shows that Donghai Group's performance continues to decline, with a net loss of 1$4.4 billion, but fortunatelyIn the fourth quarter of this year, with the blessing of the peak shopping season, the performance curve of the cross-border e-commerce platform Shopee reached an inflection point and successfully promoted the growth of the group as a whole. The dawn of a future to achieve continuous profitability and return to growth targets seems to be at hand.
As Li Xiaodong said in an email: "This is an important milestone, and we have achieved this victory in a difficult year full of headwinds. ”
Write at the end
There is no accidental success, Shopee has also gone through countless ups and downs along the way, after drastic adjustments, Shopee and its parent company SEA losses have finally stopped, after the upgrade of competitor TikTok equipment, Shopee is bound to face more fierce competition next year, and Li Xiaodong as the helmsman from his email between the lines reflects his confidence in Shopee's future.