Shopee is a leading e-commerce platform for Southeast Asia and Taiwan, covering seven markets: Singapore, Malaysia, Philippines, Taiwan, Indonesia, Thailand, and Vietnam. It also has cross-border business offices in Shenzhen, Shanghai, and Hong Kong. In 2019, Shopee’s total order volume reached 1.2 billion, a year-on-year increase of 100.5%. According to App Annie, the authoritative mobile data analysis platform, Shopee ranks among the top five in the global shopping app downloads in 2019, and also won three championships in total annual downloads, average monthly live count, and total Android usage time for shopping apps in Southeast Asia and Taiwan. , And lead the two largest markets in Southeast Asia, and won the double crown of Indonesia and Vietnam’s annual shopping app downloads and monthly live volume.
Shopee’s cross-border business in China is equally eye-catching, with single volume gains repeatedly outperforming the market. In 2019, 9.9, 11.11 and 12.12 greatly promoted cross-border sellers’ single volume to 5 times, 9 times and 10 times on weekdays. Shopee not only creates a one-stop cross-border seller solution for Chinese sellers, provides SLS logistics services, small language customer service and payment guarantee solutions, but also provides customized incubation paths for different types of sellers, SIP shrimp skin international platform, SKS shrimp skin net red marketing Such value-added services help Chinese sellers easily reach the markets of Southeast Asia and Taiwan.
Southeast Asia is a pivotal area for the construction of the “21st Century Maritime Silk Road”, and due to the superposition of geographical factors, population, and economic development potential, Southeast Asia has gradually become the blue ocean market for e-commerce development and China’s cross-border merchants’ first choice for export e-commerce.
According to the “2019 Southeast Asia Internet Economic Report” issued by Google and Temasek, the entire e-commerce industry in Southeast Asia has maintained a rapid growth of 62% in the past four years. The current value of e-commerce in Southeast Asia is 38 billion U.S. dollars, an increase of 7.6 from 2015 Times, it is estimated that by 2025, this number is expected to exceed 150 billion US dollars. As of 2019, e-commerce accounted for a relatively low proportion of total retail sales in Southeast Asia, only 2-3%, and according to the “China E-commerce Development Report (2018-2019)”, in the first half of 2019, China Online retail sales of physical goods accounted for 19.6% of the total retail sales of social consumer goods, and there is huge room for development in the Southeast Asian online shopping market.
Shopee’s parent company Sea has worked in Southeast Asia for ten years. Based on years of experience, Shopee has a deep insight into the Southeast Asian market:
1. Large market differences: The Southeast Asian market has a population of 600 million, but there are great differences, reflected in culture, consumption habits, language, etc. As the executives of the Sea Group said: “Taking Indonesia as an example, the local accent changes every 50 kilometers, and the language also changes every 250 kilometers. Imagine how different the shopping preferences of people in Southeast Asia are.”
2. Mobilization preference: Southeast Asia is the fastest growing region in the world and one of the most mobile regions in the world. As of 2018, Southeast Asia has 350 million Internet users, of which 90% of Southeast Asian Internet users use mobile Internet access.
3. Younger population, keen on social media and celebrity celebrities: 50% of Southeast Asia’s 600 million people are under 30 years old, mainly after 00, facing consumption upgrades such as family and childbirth. At the same time, the population of young people in Southeast Asia is highly socialized and keen on internet celebrity culture and star chasing. Facebook is the most sticky and active social platform in Southeast Asia.
4. Inadequate infrastructure in Southeast Asia. For example, the natural barriers of more than 10 languages make the communication between buyers and sellers full of challenges; there is no universal currency, and settlement is difficult; there are many islands in Southeast Asia and the terrain is complex. Taking Indonesia as an example, it has more than 10,000 islands. It is difficult to fulfill logistics orders.
preventive solution:
In response to the current market situation, Shopee’s response strategies include:
1. Localization strategy:
· Most of Shopee’s senior executives have lived in Southeast Asia for decades and have a deep understanding of the Southeast Asian market
· Carried out local talent recruitment and training, and reached a benign talent training echelon locally
· Shopee develops localized solutions based on the characteristics of each market to cater to the needs of local consumers.
· In addition, Shopee has established 7 apps to serve 7 markets
2. Mobile first:
· Shopee cuts in from the mobile terminal, launches a simple, clean, and easy-to-use interactive page, which enables consumers to smoothly use each function of the App, enabling them to complete selection and purchase products within 30 seconds
· Optimize the mobile experience, such as launching the Shopee Shake gold coin shaking game to fit the mobile fragmentation scene. On November 11, 2018, Southeast Asian users played a total of 94 million Shopee Shake
3. Social star drainage:
· With “social” as the starting point, Shopee combines local elements, traffic stars, interactive games, social networks, etc. to obtain highly viscous users
· Shopee launches live broadcast function in App, merchants can introduce products to potential consumers through live broadcast in App
· Shopee introduces Shopee Quiz in the app and invites celebrities from all regions to host Q&A
· Various markets invite well-known local social stars to strongly drain Shopee’s 12.12 birthday in 2018, Shopee announced that BLACKPINK, the South Korean chief woman’s day group, is invited to be the first regional brand spokesperson
On August 14, 2019, Shopee announced that it will join hands with global football superstar Cristiano Ronaldo (Cristiano Ronaldo, Cristiano Ronaldo) as a brand spokesperson, starting with Shopee’s iconic annual big promotion “9.9 Super Shopping Festival”. The platform will jointly unveil the upcoming shopping season in the second half of 2019.
4. Improve the whole process experience:
· Shopee’s cross-border business team specifically creates a one-stop cross-border solution for Chinese cross-border sellers, providing full-process support for traffic, logistics, incubation, language, payment and ERP.
