In mid-August, Donghai Group sea announced its second quarter performance in 2021. The report shows that its various businesses have developed considerably, especially the e-commerce platform Shopee, where GAAP revenue, total order count and GMV are growing rapidly.
Cross-border e-commerce-Shopee grows rapidly
This year, Shopee's GAAP revenue in the second quarter was US$1.2 billion, an increase of 160.7% year-on-year compared with the second quarter of 2020; the total number of orders in the second quarter of this year was 1.4 billion, an increase of 127.4% year-on-year compared with the second quarter of 2020; while Shopee's GMV in the second quarter of this year reached US$15 billion, an increase of 87.5% year-on-year compared with the second quarter of 2020 .
Among Brazilian shopping apps, Shopee's total downloads and user usage time ranks first, and the average monthly active users ranked second . Southeast Asia and Indonesia are the largest market locations of Shopee. In these two markets and Taiwan markets, the average monthly active users and total user usage time are the first.
Not only that, Shopee's total downloads rank first among the global shopping apps in Google App Store. Whether it is profitability or monthly active users, Shopee's performance is very eye-catching .
In fact, Shopee has developed very rapidly in the past two years. Shopee's GAAP revenue in the first quarter of this year was US$920 million, a year-on-year increase of 250.4% in the first quarter of 2020; while the total number of orders of 1.1 billion increased by 153.0% compared with the first quarter of 2020; the GMV of US$12.6 billion increased by 103.2% compared with the first quarter of 2020.
After reviewing the performance of this year's two quarters, let's take a look at Shopee's performance in the whole year of 2020. In 2020, Shopee's GAAP was US$2.17 billion, with a total order number of 2.8 billion, and a GMV of US$35.4 billion. Compared with 2019, Shopee's GAAP revenue increased by 159.8%, total order number increased by 132.8%, and GMV increased by 101.1%.
All performances can be quantified by data. Shopee directly interprets a sentence with his grades: My growth rate is so rapid!
Shopee wants to make short videos, benchmark against TIKTOK
The eye-catching performance often comes from the correct and appropriate strategic layout. The current performance is the fruits of the past layout. This year, Shopee has many strategic layouts. The most talked about is to make short videos. It is said that Shopee's short video project has a high priority and sufficient budget, so the team it builds has multiple international members from ByteDance.
With the continuous development and improvement of Southeast Asia's mobile Internet infrastructure, there are also many players in the short video track in its market, including TikTok, SnackVideo, Likee, Facebook's Reels, and Google's YouTube Shorts.
As one of Shopee's largest markets, it is reasonable to layout short videos, but after all, Shopee has never dabbled in content products, and the experience in the short video field can be said to be blank. As for whether the results can be achieved, it can only be left to time to wait and see.
Cross-border e-commerce-Shopee's development history and prospects
Headquartered in Singapore, Shopee has the largest market in Southeast Asia and Indonesia. Shopee and Pinduoduo were established in the same year (2015), both of which started on mobile. Subsequently, Shopee expanded to multiple markets including Malaysia, Thailand, Taiwan, Indonesia, Vietnam, the Philippines and Brazil.
It is said that nearly two years after entering the Latin American market, Shopee has achieved remarkable results in the top mobile download list in Brazil. In addition to Southeast Asia and Latin America, Shopee will also enter India and Europe.
Shopee adopts a platform model similar to Taobao and Pinduoduo, and involves cross-border services. Its income mainly depends on advertising + commission + handling fees, a typical monetization method of platform e-commerce.
Shopee's parent company is Sea Donghai Group. Sea adopts the AB share structure commonly used by Internet companies. The company's founder Forrest Xiaodong Li holds a total shareholding ratio of 30.6%, the voting rights are 44.4%, Tencent holds a total shareholding of 33.4%, and the voting rights are 29.1%. Sea and Tencent are currently mainly engaged in games. Tencent gives the game agency rights to Sea for local distribution, thereby testing the overseas market.
The first thing Sea Group has is the game business Garena. Purchasing virtual props in the game is a natural payment scenario, so it later deployed online payment business, and then deployed e-commerce Shopee in mid-2015. It is understood that Sea's current market value is about US$24 billion, roughly equivalent to two Vipshops or half of NetEase.
In the past two years, national policies have also increased their efforts to support the development of cross-border e-commerce , which means that cross-border e-commerce platforms including Shopee will develop, because they are catching up with the trend of the times, so the development prospects are very broad.
Cross-border e-commerce - the future direction of Shopee?
Since its establishment in 2015, Shopee's GMV and revenue have grown rapidly, and it has been a leap every year , and all of this is already in the data.
But some media still have another voice, that is, although Shopee has outstanding performance in the Southeast Asian market, it does not mean that it can firmly sit in the first place. In addition to Lazada, Indonesia's Tokopedia, Vietnam's Tiki, Thailand's Central and other more vertical local companies are competing with it. Shopee's verticalization needs to be further deepened, which will take at least two or three years.
Of course, the development of anything will not be smooth sailing. As for Shopee's future, it can only be said to be left to time, and time will give the answer. As the trend of the times, cross-border e-commerce will naturally not take three or five years, or at least ten years to start.
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