(Tiểu luận) shopee e commerce platformanalysis

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BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC - KINH TẾ TÀI CHÍNH

MARKETING MANAGEMENT Lecturers: Nguyen Duc Cong SHOPEE E-COMMERCE PLATFORM

Group 4

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5.5. Relationship with customers...50

6.2. The right to bargain comes from the customer...57

6.3. The threat comes from substitutes...59

6.4. The right to bargain comes from the supplier...60

6.5. Barriers come from the economies that will enter...62

6.6. Strength...64

6.7. Weakness...64

7. SWOT...65

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1. INTRODUCTION COMPANY 1.1. History

2. Shopee is a Singapore-based technology company owned by Sea (formerly Garena) group, founded in 2009 by Forrest Li.

3.

4. In 2015, Shopee was launched in Singapore with the orientation of being an e-commerce platform developed mainly on mobile devices, acting as a social network to serve the needs of buying and selling anytime, anywhere for users. 5.

6. Established in 2015, but it was not until August 2016 that Shopee officially entered the Vietnamese market and stirred up the Vietnamese online shopping market..

6.1. Development

7. In 2015, Shopee was officially introduced in 7 markets in the region:

Singapore, Indonesia, Malaysia, Thailand, Taiwan, Philippines and Vietnam. In 12/2015, Shopee University event was held for the first time in Taiwan.

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8.

9. Shopee offers a wide range of products from consumer electronics to home & life, health & beauty, kids & toys, fashion & fitness equipment, .. as well as many different categories. at the same time allowing both small business units and large enterprises to sell their products.

10.

11. As of 2017, the platform has recorded 80 million app downloads, over 5 million in Vietnam. Currently working with more than four million suppliers with over 180 million products.

12.

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13. Shopee has charged the seller/commission and listing fee for the product. Shopee's profit mainly comes from calculating the discount percentage from the orders transacted on the platform, applying a policy of collecting a fee of 1%-2% on each successful order from the seller. In addition, with the advantage that the platform has millions of visits per day, Shopee can also make money by providing services in Shopee Ads on the homepage of this platform.

14.

15. Since its launch, Shopee has achieved exponential growth as there are more than 11,000 sellers on Shopee Mall in 7 markets. Total revenue (GMV) is over US$10 billion

15.1. Technological facilities

16. Mobile business application: Shopee bets on the mobile wave, they believe that buying and selling on mobile will be the inevitable trend. Therefore, Shopee penetrates into other markets through mobile applications.

17.

18. Warehouse: Shopee develops based on C2C model (customer to customer), only builds a technology system to connect seller, buyer, delivery party, payment... This way is much more economical. if according to B2C (business-to-customer), that means the business imports goods

19.

20.

21. Integrating the operating system, delivery and payment support, Shopee is an intermediary that makes online shopping easier and safer for both buyers and sellers.

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22. Vision: Shopee aspires to create simple, easy online shopping experiences and provide preferential value, safety, and speed through logistics and payment support for customers.

29. There are 3 main trends that Shopee Vietnam believes will accompany the acceleration of e-commerce in the near future.

30. Firstly, e-commerce platforms will focus on integrating more interactive elements such as games and livestreams to increase connection with consumers. In the era of social distancing, consumers make the most of online platforms to both meet their essential needs and serve the purpose of entertainment. Accordingly, e-commerce has evolved from a purely transactional platform to a social experience.

31.

32. The second factor is that the growth of e-commerce has spurred the development of digital payment methods. The total number of Shopee orders paid through AirPay e-wallets across the region has increased by 4 times. In addition, the number of retail stores accepting payments via AirPay wallets in Vietnam has also doubled in the past year.

33.

34. The third trend concerns the logistics sector. Brands and sellers need to make effective use of technology to ensure goods are delivered quickly and cost-effectively. Especially when the demand for online shopping for essential items is increasing, the most effective solution is to exploit the vast and integrated network of e-commerce platforms.

35.

36. With that vision in mind, Shopee plans to continue helping businesses scale and grow efficiently by tracking the entire process from moderation to delivery; including continuously strengthening the logistics network and warehouse

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40. It is easy to see that the e-commerce market in Vietnam is becoming more

vibrant than ever. Leading the game is Shopee with 78.5 million visits (according to February 2022 data).

41.

42. According to the statistics of the Electronic Financial Journal, Vietnam is among 78% of countries in the world with electronic transactions and among 38% of countries with consumer protection policies; 45% of countries have a personal data protection policy and out of 75% have a Cybersecurity Law.

43.

44. The e-commerce market is also not immune to frauds, such as providing fake goods, poor quality goods, infringing image copyright, intellectual property rights. An image of a product can be copied and posted on many different websites with quite a difference in price.

45.

46. The political and legal environment of Vietnam has had a significant impact on the e-commerce market including Shopee. Shopee has fulfilled and complied with the obligations of an e-commerce business. According to the provisions of Article 4 of Decree No. 52/2013 ND-CP, Shopee always has strict checks for all of its goods to prevent illegal trade in counterfeit goods.

47.

48. Tax

49. According to Law No. 38/2019/QH14, Vietnam's tax policy and management system is increasingly being improved to meet the requirements of business development and improve the competitiveness of the economy.

50.

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51. The National Wage Council agreed to increase the regional minimum wage in 2020 by 5.5% (up from 150,000-240,000 VND), this increase meets 100% of the minimum living standards for workers.

52.

53. Mandatory employee benefits

54. Besides , the rules for employees are to go to Shopee Vit Nam employees. This isconsidered a blessingI always have. a person who rushes when doing bad businessp. Fishermenwho are busy participating in the rules such as: social insurance, health insurance, health insurance, and other regulations. n l burpi truh day i m c l ng

54.1. Economy

55. Economic system

56. Vietnam's economy has been hit hard by the COVID-19 pandemic due to its extensive economic integration process, but it also shows considerable resilience. In 2020, GDP growth is expected to be 2.9%.

57.

58. Although Vietnam is one of the few countries in the world with an actively developing economy, the epidemic has had long-lasting consequences for households – in January 2021, the income of about 45 % of surveyed households has decreased compared to January 2020. If Vietnam is successful in fighting the virus, GDP is expected to grow by 6.6% in 2021. At the same time, export-oriented manufacturing industries has grown well, while domestic demand has improved significantly.

59.

60. Exchange rate stability

61. The buying and selling price of USD at commercial banks at the end of 2019 was almost unchanged compared to the same period in 2018, fluctuating around 23,100 VND/USD (buying in) and 23,250 VND/USD (selling out). This development is in contrast to previous years, when the VND/USD exchange rate always closely followed developments in the international currency market. 62.

63. Thanks to the government's macroeconomic stabilization policy, the VND/USD exchange rate has always been operated in a stable direction. This trend has not only been maintained since 2019 but also fluctuated in a narrower band (about 1%).

64.

65. A stable VND/USD exchange rate will make it easier for foreign investors to invest in commodity production, increasing support for the supply of goods for e-commerce platforms like Shopee..

66. 67. 68. Labor costs

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69. Paul Tonkes, Cushman & Wakefield Logistics & Industrial Services Director, said: “The low cost of doing business, the booming middle class and the flexibility to change regulations have helped Vietnam rank. 69 out of 190 countries worldwide in the World Bank's "Ease of Doing Business Rankings", above the APAC average and above rivals Indonesia, the Philippines and Laos. Compared to Asia, labor costs in Vietnam are the third lowest, after Malaysia and China. 70.

71. Labor in Vietnam is low cost, making the labor force in delivering goods to Shopee in large quantity at low cost.

72.

73. Growth rate of the economy

74. Vietnam's economic growth rate has always maintained its momentum over the past years, with gross domestic product (GDP) reaching 265 billion USD (2019), an increase of 7.02%. Despite facing the outbreak of the Covid-19 pandemic, Vietnam's GDP dropped to 2.6% (2021).

75.

76. However, according to the World Bank, this figure is expected to recover quickly to 7.5% in 2022. Also according to this report, inflation is forecast to increase by an average of 3.8%. The main reason must be mentioned that the price of gasoline increased, which led to the price of all items increasing.

77.

78. At the same time, the transport and logistics industry has not yet fully recovered after the pandemic, leading to supply chain disruptions, increasing costs. However, this is still the level of inflation that is under control, and does not have a heavy impact on Shopee.

79.

80. Inflation index

81. Inflation fluctuates at a stable rate of 4% in 2022, which has a positive impact through savings and investment channels. Inflation at this level will help manufacturers buy raw materials and use labor at a reasonable price. In addition, they help stabilize the currency market. Low inflation supports investors in investment and e-commerce

82.

83. Labor qualifications

84. Regarding labor qualifications, according to the General Statistics Office (2022), the percentage of Vietnamese workers with professional skills is less than 30% and only 10% of Vietnamese workers can meet the requirements of enterprises. in the digital transformation period as assessed by the World Bank (2019). 85.

86. In order to improve labor skills, Shopee is also actively investing in employee training programs, or programs for students preparing to graduate such as the Global Leaders Program. Accordingly, the program includes a 2-year roadmap, reaching a managerial position. With efforts invested in people, Shopee is always

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86.1. Social

87. Income

88. Spending habits are also an important factor in the economic environment, with the impact of the Covid-19 pandemic over the past two years also dramatically changing the way consumers shop.

89.

90. The income level has been affected, they have begun to tighten their spending, along with the social distancing regulations, making people gradually switch from direct to online shopping on e-commerce sites. With this change, this is a good

opportunity to help Shopee grow during the epidemic season.

91.

92. From now until 2049, the population structure of Vietnam will still be in the golden population with the proportion of citizens of working age accounting for approximately two-thirds of the country's total. According to NCIF's forecast, Vietnam's GDP per capita in 2025 will reach 4,688 USD, belonging to the group of high-middle-income countries. With income starting to increase, it will strongly affect the shopping behavior of customers. High income makes it easy for buyers to spend money on products with preferential prices, which Shopee is currently available.

93. 94. Market

95. The environment is full of people, personalities, and ways of looking ata customer. Therefore, companies in general and Shoppe in particular do

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notconsider and offer suitable marketing programsto attractcustomers. For example: the need to buyclothes, flowers, quills, candy cakeso, cars ... booming into the5th year, Shopee offerssuper bad price programs in the airor ihave a video of a message announcing the greeting video. onTV, Facebook,.. 96.

97.

98. The explosion of social networking channels, youth trends, KOLs, celebrities. The explosive development of advertising media through social networks Tik Tok, Youtube, Facebook, ..

99.

100. In terms of the Vietnamese e-commerce market, Shopee is the most popular platform, attracting millions of visitors. However, the items sold on this platform often question the quality.

101.

102. Therefore, users are still skeptical when placing large value orders. To solve this problem, Shopee has launched Shopee mall, with censored genuine stores, dispelling customers' worries.

102.1. Technological

103. Consumers embrace technology

104. The opportunity to access technology in Vietnam is relatively large. According to statistics, Vietnamese people spend a lot of time watching TV online and using social networking platforms. Accordingly, Vietnamese people spend an average of 2 hours 40 minutes and 2 hours 21 minutes per day for these activities. Taking advantage of this, Shopee has launched many advertising campaigns on multiple platforms to attract new users.

105.

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106. According to the Digital 2020 report, out of a total of 96.9 million people in Vietnam, 68 million people have access to the Internet (equivalent to a penetration rate of 70%); has a total of more than 145 million mobile subscribers.

In the group of people aged 16 - 64 years old surveyed, up to 93% of people use smartphones. In addition, 65% own a smartphone, and 32% have at least one tablet.

107.

108. Through these numbers, we can see that the level of penetration of information technology into the lives of Vietnamese people is extremely large. Adapting quickly to the development of society, e-commerce has become an indispensable part of modern society.

109.

110. New technology

111. Branded3 claims that visual and voice search could account for 50% of all searches by 2020. Additionally, it predicts that by 2021, performing visual and voice searches will increase revenue by 30%. Ecommerce.

112.

113. Smart Logistics - Online Delivery Planning and Routing: E-commerce has become a big force in modern society, there is a huge demand for fast delivery over the Internet. This means that if an e-commerce company wants to stay competitive, they need to find the most efficient method of distributing goods. 114.

115. AI assistants and chatbots help brands answer customer questions. written in voice form. AI automatically categorizes images and tags products, ensuring greater alignment in search results based on improved attribute recognition. AI

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collects data automatically, applies visualization tools with built-in capabilities to analyze all visual assets efficiently.

116.

117. AI developed together to search and collect information to help better understand the essential needs of customers, facilitate marketing, create markets to catch up with consumer buying trends, and suggest consumers to shop. increase customer experience.

118.

119. Online payment

120. The trend of cashless payment contributes to promoting mobile payment services such as Momo, ShopeePay, ZaloPay ... According to statistics, the total number of orders on Shopee paid via ShopeePay e-wallet across the region has grown four times.

121.

122. As the demand for shopping and fast delivery via the Internet is increasing day by day. Shopee quickly seized the opportunity by constantly improving the application to bring the most convenience to consumers. Shopee has demonstrated the understanding of its customers by paying via Shopee Pay and credit cards to save time and costs, improve security and convenience to increase customers' purchasing power..

123.

124. Speed of technology transformation

125. The government identifies information and communication technology as the main industry contributing to the country's development, and sets out a master plan on information technology targeting by 2020 to turn Vietnam into a technology country. advanced information. The government has committed to invest about 415 million USD from the State Budget in the field of information

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technology by 2020. However, infrastructures for the digital economy, such as electronic payment infrastructure, infrastructure e-distribution, human resource infrastructure for e-commerce and information technology, and information security infrastructure is still limited.

126.

127. The speed of digital transformation of the logistics industry is still quite slow, the technology application level of companies in the industry is still low (about 40% in 2018), affecting the order processing speed of the e-commerce industry.

128.

128.1. Environment

129. Shopee is an intermediary for traders in the world and poop, becauseShopee is not a big deal. It's raw. So it's not a good idea to have a Shopee on your lips. 130.

130.1. Legal

131. E-commerce Law

132. In order to prevent violations of data leakage and loss, Vietnam has clear laws on cybersecurity, making it one of the few countries with policies to protect personal data. of consumers.

133. In addition, the legal system and tax administration in Vietnam are always updated and revised in a timely manner, thereby quickly improving to help businesses stabilize their business. The stable political situation creates favorable conditions for Shopee to develop sustainably in the future.

134.

135. According to Decree 52/2013/ND-CP on e-commerce. The law on e-commerce has a combination of traditional regulations with modern ones. The law on e-commerce has the interference of legal regulations in many branches of law. The law on e-commerce has a certain lag but quickly becomes obsolete. The law on commerce has regulated objects including objects and intangibles. Laws on e-commerce are mainly enforced in the network environment..

135.1. Opportunity

136. Vietnam is an extremely fertile land for the development of the e-commerce industry. Belonging to the top industries encouraged and prioritized for development by the government

137.

138. The amount of time Vietnamese people use the Internet is high: On average, Vietnamese people use the Internet for up to 4 hours a day. This is a great opportunity to grow your online business.

139.

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140. In Vietnam, the higher the education level, the more people have access to advanced technology. For a tech-savvy company like Shopee, this is a golden opportunity.

141.

142. The growth of online sales entails the online shopping of customers. This is an opportunity for Shopee to understand consumers and promote its advantages.

150. Thanks to the government's macroeconomic stabilization policy, the VND/USD exchange rate has always been operated in a stable direction, making it easier for foreign investors to invest in commodity production, increasing support the supply of goods to e-commerce platforms such as Shopee.

151.

152. Labor in Vietnam has a low cost, making the labor force in delivering goods to Shopee in large quantities at low cost.

153.

154. Inflation fluctuates at a stable rate of 4% in 2022, which has a positive impact through savings and investment channels. Inflation at this level will help manufacturers buy raw materials and use labor at a reasonable price. In addition, they help stabilize the currency market, support investor investment and e-commerce.

155.

156. The explosion of social networking channels, youth trends, KOLs, celebrities. 157.

158. The explosive development of advertising media through social networks Tik Tok, Youtube, Facebook.

159.

160. AI developed together to search and collect information to help better understand the essential needs of customers, facilitate marketing, create markets to catch up with consumer buying trends, and suggest consumers to shop. increase customer experience. ·

160.1. Challenge:

161. It is also difficult to control the quality of input products to satisfy customer needs. There are many potential risks of counterfeit and fraudulent products, which partly create barriers and negatively affect the brand image.

162.

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163. Risk of breach of breach, data loss. 164.

165. The trust of customers in advertising information about products through KOLs and celebrities tends to decrease.

166.

167. The transportation and logistics industry has not yet fully recovered after the pandemic, leading to supply chain disruptions, increasing costs.

168.

169. High selling costs: spend large amounts of money to maintain website, warehouse, customer service.

170.

171. Infrastructure for the digital economy, such as electronic payment infrastructure, electronic distribution infrastructure, human resource infrastructure for e-commerce and information technology, and information security infrastructure is still limited.

172.

173. The operator of Shopee Vietnam believes that logistics solutions in Vietnam are still in their infancy, while the ability to meet the demand for orders for retail customers is still limited, especially the warehouse system.

174.

175. MARKET ANALYSIS 175.1. Market size

176. Global Markets

177. According to the report "Digital in Vietnam 2022" of We are social, Hootsuite, the number of customers' spending on e-commerce departmental goods is growing faster than the number of users. It can be said that the development of e-commerce has led to the growth of the department store industry. In particular, during the Covid-19 pandemic, especially in the first 3 months of 2021, online grocery was the only industry that achieved a positive growth of 13%.

178.

179. The global e-commerce market has grown from $2,634.47 billion in 2021 to $3,047.83 billion

180.

181. Overall, the global revenue of the online consumer goods industry – which includes groceries, fashion, electronics and other household goods – is expected to grow by more than half a trillion dollars in 2021 (up to 18 percent). %), totaling 3.85 trillion USD for the whole year.

182.

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183.

184.

185. Vietnam e-commerce market 186.

187. According to a report by Google, Temasek and Bain & Company, in 2022, online consumers in Vietnam account for 49%, just behind Singapore (53%), higher than Malaysia and Indonesia. Specifically, if in 2015, Vietnam's retail e-commerce only reached 5 billion USD, reaching 11.8 billion USD in 2020, continuing to increase to 13.7 billion USD in 2021.

188.

189. According to the Vietnam e-commerce 2022 white paper, our country has up to 74.8% of internet users participating in online shopping. In which, the items that are bought the most online are clothes, shoes and cosmetics (69%), household appliances (64%), technology and electronics (51%) respectively

190.

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191.

192. Shopee

193. According to the chart, Shopee is currently the most popular e-commerce platform in Vietnam. This is a company under the Sea group of Singapore. Currently, Shopee accounts for nearly 73% of the total sales of 4 exchanges, equivalent to about 33.5 trillion.

194.

195. Right after that is Lazada, which holds 20% of the market share, corresponding to a revenue of 9.7 trillion, equal to about 1/3 of Shopee sales. Lazada is an e-commerce platform of Alibaba Group, China.

196.

197. Shopee and Lazada have far surpassed two domestic competitors, Tiki and Sendo, occupying the 3rd and 4th positions with 5.8% and 1.4% revenue share, respectively.

198.

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199.

200.

201. This Shopee currently has over 160 million active listings with around 6 million sellers, including over 7,000 leading brands and distributors. As of 2017, the platform has recorded 80 million app downloads, over 5 million in Vietnam. This platform is currently working with more than four million suppliers with more than 180 million products. Accordingly, the leading e-commerce site continues to be Shopee with nearly 89 million visits in the quarter.

202.

203. A total of 42 million users make their first purchase on Shopee Mall in 2021, and 5 partners have a total transaction value of US$100 million (nearly VND 2,300

207. Global e-commerce growth

208. Global e-commerce sales are expected to total $5.7 trillion worldwide by 2022. This number is expected to continue to grow over the next few years, proving that e-commerce is becoming an increasingly lucrative option for businesses. 209.

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210. Additionally, of total global retail sales in 2022, 19.7% are expected to come from online purchases. That is, almost $0.20 of the $1 spent on retail goods this year will be done over the internet.

211.

212. Online sales are expected to continue to grow and account for a larger share of the retail pie. By 2026, it is estimated that world e-commerce retail sales will exceed $8.1 trillion and total e-commerce retail sales will reach 24%.

218. Vietnam e-commerce growth

219. Compared to the current situation of world e-commerce, Vietnam has a strong growth rate. According to Statista, the global e-commerce growth rate is 16.24% in 2021 and is forecast to break through to 24.5% in 2025.

220.

221. In Vietnam, this figure will be more than 20% in 2021, with a scale of 16 billion USD. By 2025, the growth rate of e-commerce in our country can be up to 29%, reaching 39 billion USD.

222.

223. Metric.vn data shows that Shopee, Lazada, Tiki and Sendo are the 4 e-commerce platforms with the largest market share in Vietnam.

224.

225. The “Digital in Vietnam 2021” report records e-commerce spending in Vietnam in 2020 for each category. In which, buyers spend the most on the travel, transportation and travel industry with a total spending of up to 3.18 billion USD.

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Next is the electronics industry with total revenue of $1.57 billion, half of the leading industry. Other billion-dollar e-commerce revenue sectors are fashion and beauty, furniture and home goods, and food.

226.

227. Vietnam's economic growth

228. According to the General Statistics Office, the wholesale and retail industry decreased by 0.21% over the previous year, reducing 0.02% in the growth rate of total added value of the whole economy; transportation and warehousing industry decreased by 5.02%, decreased by 0.3%; the accommodation and food service industry dropped sharply by 20.81%, down 0.51%.

229.

230. Summarizing the whole year of 2021, Vietnam's economic growth is only 2.58%, the lowest in the past 30 years.

231.

232. In that context, Vietnam's e-commerce still maintains a stable growth rate of 16%, retail revenue reaching 13.7 billion USD in 2021; The proportion of e-commerce retail sales in the total retail sales of consumer goods and services nationwide reached 7%, up 27% over the same period in 2020

233. 234.

235.

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236. Foreign direct investment will continue to pour into Vietnam's e-commerce sector in 2022. Companies from China, Japan, South Korea and the United States have expanded their digital presence on the internet. local e-commerce platforms

237.

238. Shopee company growth

239. The growth rate of discussion of 4 e-commerce floors in 2021 increased sharply, brands Shopee, Lazada, Tiki increased 6 times; Sendo alone has 7 times more discussion compared to 2020

240.

241. 242.

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244.

245. At the same time, Shopee's search trends on Google Trends always have the highest popularity, monthly average >65/100. Popular keywords searched include “Search for Shopee discount codes”, “Shopeefood” and “Shopee Pay

246.

247.

248. Accordingly, leading is Shopee with nearly 89 million visits in the quarter, up about 14% compared to the third quarter of 2021 and about 30% over the same period last year. Shopee is also the number one e-commerce site on both Android and iOS mobile platforms.

249.

250. Comparing Tiki and Lazada almost flat compared to the third quarter of 2021, the traffic volume was 17.9 million units and 20.6 million units, respectively. Compared to the fourth quarter of 2020, both of these e-commerce platforms have negative growth, with Tiki being -20% and Lazada being -1%.

251. 252.

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259. Shopee.vn generates the majority of social media traffic through Facebook, followed by Youtube and Instagram (desktop). Engaging audiences through Tiktok offers the possibility of new opportunities according to similar web statistics 260.

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261.

262. Access from social networks to shopee.vn 263.

264. The number of Shopee sellers in the vicinity of major cities increased by 70% over the same period last year.

265. In 2021, 1 in 6 orders will be from new Shopee users, while the number of Shopee users in the vicinity of major cities has increased by 40%.

266.

267. The number of ShopeePay e-wallet users in the vicinity of major cities increased 2.5 times, as more and more people enjoy the convenience of digital payment. Besides, ShopeePay is also an effective tool to connect many online sellers and retailers with new customers.

268.

269. More than 1,000 local sellers have surpassed 100,000 USD in revenue (nearly 2.3 billion VND) in 3 Shopee's year-end shopping festivals at 9.9, 11.11 and 12.12.

270. Sellers entering business on an online platform for the first time also recorded significant growth in the year-end shopping season. On November 11 alone, the sales of new sellers on Shopee increased 18 times compared to the average weekday.

271.

272. The “ShopeePay Near You” feature is a new feature that helps users discover many offers when paying at stores near them. After implementation, this new feature has recorded 5 million transactions made at the system of partner stores. 273. Shopee Mall continues to create growth momentum for partner brands,

pioneering in providing innovative solutions and tools to support sustainable brands. Many partner brands have recorded strong growth and achieved new milestones. A total of 42 million users make their first purchase on Shopee Mall in 2021, and 5 partners have a total transaction value of US$100 million (nearly VND 2,300 billion).

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274.

275. In 2021, Shopee Vietnam's net revenue is nearly 5,700 billion dong, nearly 2.5 times the figure of 2020 and 7 times higher than 2019. However, along with increased revenue, the company's recorded loss every year. This platform is trending down.

276.

276.1. Market Trend

277. World e-commerce

278. Trust is the main currency of the future of e-commerce. Brands must be transparent, authentic, and available to their customers, especially when online consumers spend most of their time: on social media. The trend of social e-commerce is being the online shopping hub for tomorrow's consumers, with brands investing in video and in-person shopping.

279. Direct-to-consumer (DTC) companies are also investing in online communities to personify their brands, increase customer retention, and overcome skyrocketing advertising costs.

280. 281. Trend 1

282. Rising acquisition costs force brands to foster long-term relationships with their customers

283. Businesses strengthen customer connections by putting their brand identity front and center

284.

285. Direct-to-consumer competition is rising

286. Although retail business doors have reopened, ecommerce sales aren’t slowing, resulting in an influx of DTC brands competing for customer attention. 287.

288. Advertising costs are skyrocketing across platforms

289. Digital advertising costs are eating up marketing budgets, putting performance marketing–heavy customer acquisition models in jeopardy.

290.

291. Brand building is helping attract and retain customers

292. Businesses are overcoming the competition by investing in brand building, which increases customer lifetime value, boosts conversion rates in the short term, and attracts out-of-market buyers in the long term.

293. 294. Trend 2

295. Death of third-party cookies forces brands to rethink personalization

296. Online retailers rehumanize their brands through communities, transparency, and shared values

297.

298. Consumers are demanding personalization 24

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299. Consumers continue to demand personalized shopping experiences, even as regulations make data tracking harder, and the biggest players phase out support for third-party cookies.

300.

301. Personalization isn’t a magic bullet for customer engagement

302. Brands innovate with first-party data, but personalization isn’t enough to create long-term relationships with customers.

303.

304. Brand communities are building customer loyalty

305. Brand communities become key to building trust and brand equity, and improving customer retention.

306. 307. Trend 3

308. New commercial opportunities emerge on the biggest social platforms 309. Brands embrace experimentation to take advantage of social commerce 310.

311. Ecommerce is migrating to social media platforms

312. Ecommerce activity is congregating on social media platforms, from brand marketing to customer service to shoppable advertising.

313.

314. Social platforms are presenting new ways to engage customers

315. Diverse platforms and rapidly evolving features lend themselves to unique customer experiences, encouraging brands to reimagine consumer engagement. 316.

317. Video is making social commerce more sociable

318. Video is key to unlocking the power of social commerce. Leading brands are focusing on social-first approaches like behind-the-scenes livestreams, video consultations, and personalized product recommendations.

319.

320. Vietnam e-commerce

321. The digital economy in Vietnam is growing rapidly, and four key sectors — e-commerce, online travel, food and transportation, and online media — are increasing technology adoption. to keep up with consumer demand. In 2021, the e-commerce industry in Vietnam recorded a growth of 16% over the previous year, reaching a total value of goods worth 13 billion USD.

322.

323. The shift to e-commerce in Vietnam has opened the door for low-income people to try running their own micro businesses. Women have also helped increase their combined household income through online sales. Vietnam e-commerce growth in 2022 is forecasted to reach 16.4 billion USD in revenue, the first time the industry has reached this value.

324.

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325. According to a recent report, 53% of Vietnamese consumers have considered online shopping as a habit, which is a good sign for the development of Vietnam's e-commerce industry in the coming years.

326.

327. There is a high demand for Vietnamese agricultural products and exporters can exploit the growth of Vietnam's e-commerce sector to promote and market these products. By partnering with manufacturers, distributors and other industry players, online merchants can support the growth of the agricultural industry through their own capabilities.

328. Digital banking also plays a key role in Vietnam's e-commerce sector. In 2022, 85% of Vietnamese consumers prefer digital financial services over traditional payments. The digital transformation of the Vietnamese banking system enables leaner systems to make services easier for consumers to access. With more innovation, it can help accelerate the e-commerce sector as more consumers maximize online shopping channels.

329.

330. Revenue from sales via livestream is expected to continue to increase, leading to an increase in the demand for product reviews to support purchase decisions. 331.

332. Omnichannel will become a new form of retail. Brands will take advantage of both traditional and online channels by joining e-commerce platforms, using available online marketing tools.

333.

334. The customer shopping journey will gradually be personalized. This will be the key to attracting attention and retaining consumers. E-commerce platforms have invested in AI and Big Data to aggregate and process information, thereby designing their own experiences.

335. 336. SHOPEE 337.

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338.

339. The demand for shopping at shoppe has grown strongly in different industries, especially the beauty and women's fashion industry, which increases sharply on holidays or discount festivals.

340.

341. In the first 3 major sales seasons of 2022, the statistics of the top 5 best-selling products of the Beauty and Women's Fashion Industry clearly show the buying

346. 3. Shirts and dresses are still the two groups that bring the highest revenue when accounting for 40% of the total sales of Women's Fashion on Shopee 347.

348. Along with the increased demand for open shops to serve the same amount of demand in the market, but shoppe has not yet dominated.

349.

350. The number of Shopee sellers in the vicinity of major cities increased by 70% over the same period last year.

351.

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352. In 2021, 1 in 6 orders will be from new Shopee users, while the number of Shopee users in the vicinity of major cities has increased by 40%.

353.

353.1. Market share and demand

354. The world and Vietnam

355. Vietnam's e-commerce growth is forecasted to continue to boom in the coming years and will reach $39 billion by 2025, ranking second after Indonesia ($104 billion), equal to Singapore. Total revenue of Vietnam's Internet economy by 2025 is forecast to reach 57 billion USD, second only to Indonesia. Vietnam also has the second highest percentage of consumers shopping online in the region, after Singapore.

356.

357. According to the “Digital 2022 global overview report” of We are social & Hootsuite, the percentage of internet users who shop weekly in Vietnam ranks 11th among countries (58.2%), on par with the global average demand, higher than the US, Australia, France, Japan, Germany but lower than Thailand, Malaysia, Korea, China, Singapore, Philippines, India, Indonesia and the UK. 358.

359. Across Southeast Asia, the “Southeast Asia Economy 2021” Report by Google, Temasek and Bain & Company forecasts that e-commerce revenue will grow from $120 billion in 2021 to $234 billion. USD in 2025. It is forecast that the average online shopping value of online consumers will continue to increase strongly, from 381 USD/person in 2021 to 671 USD/person in 2026. With a rate of 49% , online shopping consumers in Vietnam are only behind Singapore (53%), higher than Indonesia and Malaysia.

360. 361. Shopee 362. 363. Evaluate

364. The ranking of websites helps to gauge the value of a company. Over the past three months, shopee.vn's global ranking has dropped from 282 to 295. 365. But still holds the number one position in Vietnam's e-commerce market 366.

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374. According to the e-commerce business panorama report in the first half of 2022 of the data research company Metric.vn just published, Vietnam is becoming the second largest market in Southeast Asia, only after Indonesia. in the context of great development after the COVID-19 pandemic.

375.

376. Metric.vn data shows that Shopee, Lazada, Tiki and Sendo are the 4 most prominent commerce platforms in Vietnam. Specifically, Shopee is the e-commerce platform with the largest market share in Vietnam today with sales of up to 43,118 billion VND, accounting for 72% of the market share from November 2021 to May 2022.

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378. In second place is Lazada with a market share of 20.9%, equivalent to VND

12,539 billion. And Tiki and Sendo are far behind the two competitors above

379.

380.

381.

382. According to iPrice Group statistics in Q4/2021, Shopee is currently the leader in popularity with nearly 89 million visits. On social networks such as: Instagram, Facebook, Youtube, the presence of this e-commerce giant is outstanding. 383.

384. Notably, Shopee's traffic is more than double that of direct competitors such as Tiki, Lazada and Sendo combined. Lazada is currently ranked 4th with 20.6 million visits, followed by Tiki's 5th place with 17.8 million visits. And Sendo dropped to 11th place with nearly 5 million hits.

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390. Shopee's staff from 5000 to 10,000 employees

391. Team CEO and executive team, including product manager, chief commercial officer, and chief operating officer.

392.

393. Leadership Team, consisting of Head-Business Intelligence, chief product officer, Head-Data Privacy, Chief commercial Officer, Director-Marketing growth and COO. The Shopee leadership team has a wealth of experience in strategic planning, consulting, financial management, communications, and film programming. They have worked at major corporations such as Tesco PLC, L.E.K. Consulting, PwC, CIMB, Philip Morris International, and Golden Agri-Resources (GAR), as well as at prestigious universities such as the London School of Economics and Political Science (LSE), Miriam College, the Ateneo de Manila University, and the University of California, Berkeley.

394.

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395. Team Data at Shopee includes Data Analytics (Data Analytics) and Data Science (Data Science). The Data Analytics team plays a key role in building Shopee's data platform and conducting analytics to solve business-related issues. The Data Science team uses scientific methods and hacking skills to optimize key processes and business models based on an in-depth understanding of Shopee's operational strategy. Team Data also includes Machine Learning, Computer Vision, Natural Language Processing and Rules-Based Models.

396.

397. The key in the development of the Shopee platform is the Engineering and Technology team. The team is made up of a group of engineers from all over the world trying to build the best system with the most suitable technologies. 398.

399. The Regional Functions divisions include the following groups: Regional Operations, Brand and Growth Marketing, Regional Business Development and Product Management. These teams specialize in using data analytics to improve the buyer experience by solving problems now and in the future..

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