SCHOOL OF BUSINESS MANAGEMENT

MASTER OF SCIENCE (MANAGEMENT)

STRATEGIC MANAGEMENT
 topic : The Shopee Story

1. Company’s history
Shopee was established in 2015 in several countries such as Singapore, Malaysia,
Indonesia, Thailand, Taiwan, Vietnam and the Philippines. Shopee is regulated by Sea
Group (formerly known as Garena). Shopee is a well -known online shopping mall in
Malaysia and is a major competitor to Lazada, Mudah.my and others. The founder and
also Chief Executive Officer of Shopee is Chris Feng and he is from Singapore.
According to the founder of Shopee, the main purpose of establishing Shopee is "
Shopee believes in the transformative power of technology, and strives to connect
buyers and sellers within one community defined by three key attributes – Simple,
Happy, and Together.". Shopee emphasizes the noble values in business such as
providing the best service, quick to adapt, always running to get things done and
committed in carrying out business tasks and operations. Shopee provides consumers
an easy, secure, fast, and enjoyable online shopping experience that is enjoyed by tens
of millions of consumers daily. It offers a wide product assortment, supported by
integrated payments and seamless fulfilment. Shopee commits to helping brands and
sellers succeed in e-commerce, and is highly tailored for each market in which it
operates. Shopee was developed as the first market centric and mobile and users can
browse, buy and sell anywhere. It is backed by online payment methods, nationwide
shipping and has a buyer's money guarantee through the Shopee Guarantee package.
Shopee has offices in more than 14 countries.

2. Product & Services

Shopee is an online business that is an e-commerce platform. Business operations of
Shopee is Consumer to consumer (C2C) and Business to consumer (B2C) models. C2C
modela is a business model in which third-party companies facilitate transactions for
products or services between private consumers without a business participating on
either end of the sale. B2C models represent transactions between businesses and
individuals. It consists of product sellers or services from businesses to end users.
Shopee provides various sales categories such as hardware, software, food, clothing,
sports equipment and so on. Shopee also provides other services such as e-wallet,
delivery of goods (Shopee Express), instalment payment via credit card and the latest
is SPayLater which is an instalment payment service by the Shopee.
 Picture 1.0: Shopee Product & Main display

3. Performances
In 2018, Shopee’s Gross Merchandise (GMV) value reached US $ 10 billion
with more than 600 million transactions on the platform. Shopee’s highest sales record
was in December 2019, Shopee sold 80 million items in one day at the Shopee 12.12
Anniversary Sale. Shopee's revenue in 2020 is US $ 1.78B, an increase of US $ 0.98B
compared to 2019.
Shopee's revenue for Q4 2020 was US $ 842.2 million, an increase of 178.3
percent over the previous year. This included US$627.6 million of marketplace
revenue, up 175.4 per cent year-on-year and US$214.6 million of product revenue, up
187.1 per cent year-on-year. the gross orders Shopee also increased 134.6 percent year
on year in Q4 with a total of 1 billion. While the gross merchandise value (GMV) is US
$ 11.9 billion, up 112.5 percent year on year.
 In Indonesia, Shopee also ranked first in Indonesia in terms of average monthly
active users, total time spent in app on Android, and downloads in the Shopping
category, for Q4 and for the full year of 2020. This is evidenced by more than 430
million orders for the market in Q4 2020, or a daily average of about 4.7 million orders
which is an increase of more than 128 percent from the previous year. Additionally,
Shopee ranked first in YouGov’s “Best APAC Buzz Rankings 2020” and ranked eighth
in YouGov’s “Best Global Brands 2020”. Shopee represents one of the only two e-
commerce brands in YouGov’s top 10 global brand rankings.
4. Key Success Factors
Various advertisements and promotions conducted by the management in ensuring that
Shopee is the top choice in each country. Shopee provides user-friendly e-commerce
software. The design of each software display is easy to understand, the operation of
the display sheet is very smooth, easy to finding the item needed and price comparison.
There are various promotions such as birthday promotions, cashback, monthly discount
and so on. Among the promotions carried out were choosing the world's best footballer
Cristiano Ronaldo and the Korean Pop group Blackpink to be their product
Ambassadors. Shopee also focuses on other factors to attract customers such as flash
sales, direct sales, bulk purchases, discounts on purchases of various items, daily coin,
cash on delivery and monthly instalments. Shopee is very concerned about advertising
and promotion. Almost every day of the year the Shopee is always heard and seen on
television, radio stations, websites, social media and so on. Shopee also gives
consumers the opportunity to make price comparisons for each item
Reference
1 – Produck & services
https://shopee.com.my/

2 – Shopee background
https://www.sea.com/products/shopee