Title map: Southeast Asia e-commerce platform double 11 offline carnival
Double 11 has been a strong past, but no matter which number is given on the mainstream e-commerce platform, there is not much surprise. It can be said that the power of consumerism has always been there, but the real growth that can be brought about by the festival has already taken a lot of effort.
However, because the domestic Internet giants have brought the “genes” of e-commerce, in Southeast Asia, the online consumer market is still heading for a rare momentum.
Go, go to Southeast Asia
A part of the double 11 carnival was handed over from Southeast Asia across the sea.
Lazada, who wants to have 300 million consumers in 2030, the first hour of the double 11 opening, the total number of orders on the platform exceeded 3 million; as of 12 o’clock on the 11th, Lazada’s cross-border sales reached the same period last year. 200% of the transaction; another Southeast Asian e-commerce giant Shopee also announced the results of the official: the platform 11.11 promoted the sale of 70 million items on the same day, the first hour of orders more than three times the same period last year, cross-border orders are more than normal Increased to 9 times.
The promotion of the Southeast Asian market is actually very dense, such as Double 9, Double 12, Ramadan… Among them, the Double 11 and the Double 12 are obviously more like a game that has been completely copied from China. This also means that e-commerce, as a business model with a high maturity in the Chinese market, is continuing its enthusiasm in Southeast Asia.
If there is no pattern in the Southeast Asian market in the past few years, in the past few years, with the help of Internet giants, all of them have already set their sights on Southeast Asia.
It is precisely because of the past experience of the giants that this e-commerce nerve in Southeast Asia has been extremely active in the past few years: in 2017, the total commodity transaction volume (GMV) in Southeast Asia was close to $11 billion, and in 2018 it exceeded $23 billion. . In this battle, the most impressive ones are Shopee and Lazada under the Tencent and Ali label blessings.
The formation of the online online shopping platform based on Shopee, Lazada and Tokopedia is a sign that Southeast Asian e-commerce is entering the next head platform stage: since 2015, the total size of these three e-commerce platforms has increased. More than 7 times, but in terms of growth, it is far more than other platforms.
In a third-party agency reportSoutheast Asia’s growth is still rising: Google and Temasek joint research pointed out that Southeast Asia’s Internet economy is expected to exceed $240 billion by 2025, $40 billion higher than the first forecast in 2018. The value of e-commerce in Southeast Asia reached $153 billion. By then, the value of the e-commerce market in Southeast Asia is expected to reach $102 billion, accounting for more than 40% of the total value of the Internet economy in the region.
And now it seems that the double 11 that has caused the national carnival in China has become one of the forces that boosted the peak of the GMV in Southeast Asia. Although the development level of e-commerce in Southeast Asia is still far from the domestic market, but in the big gameplay, there is no time difference between the Southeast Asian market and the domestic market.
Copy Double 11
The market increment and new gameplay of e-commerce are still emerging. One trend is that entertainment is becoming more and more intense. In Southeast Asia, Shopee and Lazada have also begun to entertain their way to stimulate sales growth: Lazada, which is connected to the domestic home, held a party in Kuala Lumpur, Malaysia; Shopee also hosted a 15-hour live broadcast shopping event. .
In this new game of sudden fire, this year, the entertainment and the goods are undoubtedly live. In China, the TV commercial upgrade version of e-commerce live broadcast has become the standard for online shopping. Li Jiaqi, Wei Ya and other top streams have brought traffic from the live broadcast to the variety and media, frequently appearing on hot search, topic lists and major video sites.
However, there is certainly no Li Jiaqi in Southeast Asia, The live broadcast is still in its infancy in Southeast Asia.
Shopee has just developed Shopee Live, which is the main live broadcast feature this year. The gameplay is similar to the domestic ones: There are three kinds of live content on Shopee Live, one is the live broadcast of Shopee for the big brands, the other is the self-broadcast of the merchants, and then the live interactive live broadcast of Shopee. According to data released by Shopee, Shopee Live has been launched in seven markets (Singapore, Malaysia, Philippines, Indonesia, Thailand, Vietnam, Taiwan) in Southeast Asia and Taiwan. The cumulative total viewing during the 11.11 promotion period exceeded 65 million. .
In addition to live streaming, there is another new way of this big marketing campaign, the game. During the 11.11 big warm-up period, ShoPee launched an AR game, Shopee Catch. During the entire promotion period, Shopee has more than 150 million game interactions.
“The game can be played for yourself, or you can share it with his friends. I think this can make the platform more sticky.” Last month, Shopee Chief Commercial Officer Zhou Junjie said that including Tiger Sniff The media said.
Shopee Game Case
Live, games, social, etc., are a new way to bring traffic and retention, and the wind of the double 11 can get a good looking data in a short period of time. However, for the Southeast Asian e-commerce at this stage, the data looks good, the significance is not big, and more importantly, it is to solve the “short board” of the development speed of the overall e-commerce.
connected into an “island”
Before other platforms of the same model, Shopee’s parent company, Sea, has caught up with the capital market and successfully listed on the NYSE in 2017. It can be said that this wave of commercial games launched in Southeast Asia is accelerating forward, but it is still groping.
At present, most of the technology Internet companies in Southeast Asia, including Sea, have yet to make a profit. Sea’s 2019 Q3 earnings report released a few days ago shows that, as in previous years, losses are still the norm. However, its adjusted EBITDA for the quarter was -$300.8 million, compared to $1.883 billion for the same period last year, and revenue losses were reduced by 83.2%.
The main source of loss is e-commerce business-Shopee’s adjusted EBITDA loss in the third quarter of 2019 increased 18.1% year-on-year to reach -253.7 million. Sales and marketing expenses increased by 30.2% year-on-year.Reached $199.2 million.
When is it profitable? Sea’s CEO and Chairman Forrest Li said in an interview this year: “Shopee is expected to achieve profitability in the next few years, and we don’t think it will take a long time.”
Zhou Junjie said that at this stage, profit is not the most important purpose. He feels that the most important thing at the moment is how to make the market bigger and make the penetration rate of the platform higher. “In fact, Southeast Asian e-commerce is still in a relatively early stage, the overall occupancy rate is still very low.” Zhou Junjie said.
With the experience of the domestic Internet giant, the threshold for starting this same business in Southeast Asia is obviously much lower, but the e-commerce that is now mentioned is not simply online sales, it has become an ecological competition, among which It includes a variety of basic configurations such as payment, logistics, technology, data and commodity power.
As we all know, the existing payment conditions in Southeast Asia are not very mature. Cross-border merchants who have contacted many Southeast Asian e-commerce platforms at the same time told Tiger to sniff. The Southeast Asian payment system is not developed, and there are few similar to China UnionPay. The product, while the overall bank card holding rate in Southeast Asia is very low. However, according to his observations, there are also some new payment methods such as Go Pay in Indonesia, which are appearing in succession and “doing a good job”.
About payment, Shopee offers in Singapore mainly to cater to locals for bank and credit card payments, such as handling debit and credit card payments through third-party providers such as Visa and Mastercard, or local banks such as DBS Bank , UOB and OCBC Bank customers provide credit card payments, and then bank ATM or online bank transfer, payment to the designated Shopee account.
But specific to different countries and different regions, their payment situation is not the same.
For Thailand,The year-on-year growth of Internet e-commerce users is gradually slowing down, and its share of the total population is still at a low level. > And this is related to the usual consumption habits of Thai users: Thai users are currently more inclined to offline consumption. The main reason is that the current electronic payment system in Thailand is still not perfect, so cash transactions are still the most important trading method used by e-commerce users in Thailand.
The reason for this is that the situation of payment is still due to the “island” between different countries in Southeast Asia.
Southeast Asian countries seem to be one-of-a-kind, but but logistics has different issues of strong independence and timeliness in different regions: “Like Big Bangkok, Greater Jakarta can basically achieve Japan, but some islands in Indonesia often take about a week to arrive,” the merchant said. The development of e-commerce in Southeast Asia is very fast, but compared with the scale of e-commerce and the quality of service in China, it cannot be considered as “breaking”.
As the head of the Southeast Asian e-commerce, and is the Hopeee that Tencent has placed hope on, it is the hard-wired e-commerce.
Multiple tripartite data reports show that Shopee is often at the top of the mobile shopping app, because Shopee’s positioning at the beginning of Indonesia’s launch was to move C2C. Zhou Junjie also said that after Shopee will still use the mobile terminalstrategy to maintain the share. “Whether it is the strategy of later operation, including design, product design, the entire experience, Shopee will pay great attention to polishing the mobile experience.”
“In the past, broadband was actually a low penetration rate, and then the cost was relatively expensive, which limited more people to access the Internet, but after 2014 and 2015, there was a big change. First, the mobile phone The increasing penetration rate makes it possible for e-commerce business to go online. Although many countries mainly use low-end Android phones, however, smartphones are becoming more and more popular anyway. In addition, the network has begun. Not very good, but it will get better and better later, whether it is 3G or 4G, everyone has a way to use the mobile phone channel to go online.” Zhou Junjie said.
And most importantly, the problem of “localization” of e-commerce is still to be solved for different Southeast Asian regions that seem to be connected but actually isolated.
Shopee’s solution is to develop 7 different Shopee versions for 7 markets. “Why do you want to do this? For us, whether it is operation or development, it can give us a greater flexibility to do some localization changes. The language is definitely part of it. The other is that logistics payment has to be done. To be very local. The most important thing is that all activities should be adjusted according to local customs.” Zhou Junjie said.
With the “small” experience of Chinese e-commerce, the new world of Southeast Asia has a long enough story to tell.