In the third quarter of 2020, Shopee, a Singapore-based tech company, garnered 62 million monthly visits in Vietnam, rising more than 80 percent from the previous quarter.
>>Read more: Why is Shopee successful in the whole SEA region?
>>Read more: Entering the Southeast Asia E-commerce market: Why Shopee?
The aggressive expansion of Shopee in Vietnam is part of a new era in Southeast Asia’s $100 billion digital economies. E-commerce will be the cornerstone of a new spectrum of alliances in the post-COVID age, and competitors are rushing to create entire ecosystems to satisfy as many customers’ needs as possible.
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So what is the Shopee business model that enhances the wide coverage and success of Shopee in the whole SEA region?
Shopee constantly gets updated with the new initiatives and changes to adapt and cater to the constant changing of customer’s requirements. Recently, Shopee, unveiled a series of new initiatives and features for Shopee Mall, at the inaugural Shopee Brands Summit 2021, held at Andaz Singapore.
Let’s find out more what is Shopee business model in 2021
New programs to help high-performing brands scale new heights
Shopee announced the launch of two new programs at the summit, aimed at assisting top-performing firms in realizing their online development potential. The Regional Champion Businesses Programme, for example, is a by-invitation-only initiative in which 16 brands will receive priority Shopee support in the areas of marketing, innovation, and insights. Exclusive access to Shopee’s campaigns and new feature releases will be provided to these brands, as well as personalized support to help them expand their businesses.
> Read more: Shopee’s marketing mix strategy helps change the game
>>Read more: The competitive advantage of Shopee in SEA: Shopee supply chain strategy
The ‘100 Million Dollar Club,’ which encourages brands to reach USD100 million in Gross Merchandise Value (GMV) in a single year, is the second initiative. The first ten brands to achieve this goal will be awarded with exclusive business insights, improved campaign exposure, media support, and other benefits.
>Read more: The competitive advantage of Shopee in SEA: Shopee supply chain strategy
>>Read more:Entering the Southeast Asia E-commerce market: Why Shopee?
What is Shopee business model – Shopee Mart’s Enlargement
Shopee also wants to expand its grocery delivery platform, Shopee Mart, by bringing on more fast-moving consumer goods (FMCG) merchants. In Southeast Asia, grocery delivery is becoming a strongly fought industry, with newcomers like Grab, Foodpanda, and Deliveroo investing considerably in their skills in the face of the pandemic.
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This puts them in direct rivalry with more established businesses such as RedMart, NTUC FairPrice, and Amazon Fresh, which are all owned by Lazada.
Mr Zhou stated that in order to expand Shopee Mart, Shopee will need to improve its fulfillment capabilities in areas such as warehousing and distribution centers (known as S-Mart in Singapore). In most markets, the platform offers users in capital cities next-day delivery.
“It could be a combination of us stocking the items ourselves, or having certain brands or partners, on a consignment basis, put items in a warehouse and we do the fulfillment for them,” said Mr. Zhou.
>>Read more: How automated fulfillment is changing E-commerce around the world
>>Read more: The increase in logistics demand tripled the growth of e-commerce
>>Read more: Vietnam enters in the top 10 of emerging logistics market 2021
Warehouse expansion
In 2021, more than 10 new warehouses will open across the region, and brand partners will ship three times more items from Shopee’s warehouses than they did a year ago.
Shopee Xpress, the company’s in-house last-mile delivery service, will be expanded to more tier two and tier three cities in markets including Thailand, Indonesia, and the Philippines.
>>Read more: Shopee Malaysia Rolls Out Next-Day Delivery Service
>>Read more: How logistics companies worldwide tackle last-mile delivery
The company had tremendous growth in the third quarter of 2020, which ended on September 30, 2020, as a result of regional stay-at-home policies. E-commerce revenue climbed 173.3 percent to US$618.7 million, while gross merchandise value (GMV) increased 102.7 percent to US$9.3 billion, according to the parent company’s figures.
Shopee Mall
GMV totaled US$23.5 billion from Q1 to Q3 2020, with gross orders reaching 1.78 billion. On the marketplace, there were roughly 10 million active vendors.
>>Read more:Why is Shopee successful in the whole SEA region?
>Read more: 3 key factors that contribute to Shopee’s success
>>Read more: Entering the Southeast Asia E-commerce market: Why Shopee?
According to Mr Zhou, Shopee Mall, a platform dedicated to real brand owners and approved distributors, played a role in the company’s success.
>>Read more:Reveal the best methods in 2021 on how to improve sales on Shopee
>>Read more: The competitive advantage of Shopee in SEA: Shopee supply chain strategy
Orders on Shopee Mall have increased tenfold since its inception in 2017, exceeding the entire platform growth. In 2020, there were 2 times as many brands on Shopee Mall as there was the year before. The feature now has over 20,000 brands on it.
Shopee Brands Awards 2021
Shopee also presented ten brands with awards for their excellent marketing and commercial performance to commemorate their milestones and achievements.
At the event’s conclusion, Ian Ho, Shopee’s Regional Managing Director and Head of Regional Brand Partnerships, reaffirmed the company’s commitment to brands, saying, “We’ve all gathered here today because we all share the same goal and commitment: to provide our users and customers with the best shopping experience possible. Shopee is confident in pushing businesses to the next level in an increasingly digital-first world thanks to our strong and devoted employees in each of our markets.”
More readings?
>>Read more: Why is Shopee successful in the whole SEA region?
>Read more: Shopee’s marketing mix strategy helps change the game
>>Read more: The competitive advantage of Shopee in SEA: Shopee supply chain strategy