Shopee still holds out against its rivals

🎖️ Shopee holding up

Sea Ltd., the parent company of Shopee, is showing signs of progress even against TikTok, Lazada, Shein and Temu.

The company reported a positive adjusted quarterly profit and a promising outlook for 2024, indicating that their efforts are paying off.

• One key metric, the total value of goods sold on Shopee (gross merchandise volume), grew by 29%.

• This is a positive sign for Shopee's future in the Southeast Asia, which has over 650 million potential customers.

🪖 Shopee’s rivals

Companies like TikTok Shop, Shein, and Temu are investing more in promotions, especially in live-streaming shopping, forcing Shopee to do the same.

• This strategy could lead to lower profit margins for Shopee in the short term, but it's a necessary step to maintain market share.

Alibaba, Shopee’s main competitor, also invested an additional $634 million in Lazada.

The battle for dominance in Southeast Asian ecommerce is particularly fierce in Indonesia.

• TikTok joined forces with GoTo Group's Tokopedia, acquiring a 75% stake in the company.

• TikTok was previously banned in the country before doing this.

Despite the challenges, Shopee has managed to hold its own. The company claims to have made "meaningful gains in market share" in 2023 and intends to "maintain our market share in 2024."