(Tiểu luận) shopee e commerce platformanalysis

Established in 2015, but it was not until August 2016 that Shopee officially enteredthe Vietnamese market and stirred up the Vietnamese online shopping market..6.1.. According to the Vie

BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC - KINH TẾ TÀI CHÍNH

⁂⁂⁂⁂⁂⁂⁂⁂⁂

MARKETING MANAGEMENT

Lecturers: Nguyen Duc Cong

SHOPEE E-COMMERCE PLATFORM

ANALYSIS

Group 4

Table of Contents

1 INTRODUCTION COMPANY 1

1.1 History 1

1.2 Development 1

1.3 Technological facilities 3

2 PESTEL 5

2.1 Political 5

2.2 Economy 6

2.3 Social 8

2.4 Technological 10

2.5 Environment 13

2.6 Legal 13

2.7 Opportunity 14

2.8 Challenge: 15

3 MARKET ANALYSIS 15

3.1 Market size 15

3.2 Market growth 18

3.3 Market Trend 25

3.4 Market share and demand 29

4 Company Analysis 33

4.1 Manpower 33

4.2 Materials 37

4.3 Machinery 38

4.4 Money 40

4.5 Method 42

5 Analysis of canvas model Shopee 45

5.1 Shopee's partner 45

5.2 Activities key 47

5.3 Main resource 48

5.4 Value provided to customers 49

5.5 Relationship with customers 50

5.6 Channels 50

5.7 Customer segmentation 50

5.8 Cost 51

5.9 Revenue 51

5.10 Comparison of canvas model between Shopee and Lazada - Shopee's competitor 52

6 Five Forces 55

6.1 Competitors 55

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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6 Established in 2015, but it was not until August 2016 that Shopee officially enteredthe 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 In12/2015, Shopee University event was held for the first time in Taiwan

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 manydifferent categories at the same time allowing both small business units andlarge enterprises to sell their products

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

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2

13 Shopee has charged the seller/commission and listing fee for the product.Shopee's profit mainly comes from calculating the discount percentage from theorders 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 theplatform has millions of visits per day, Shopee can also make money by providingservices in Shopee Ads on the homepage of this platform

14

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

15.1 Technological facilities

16 Mobile business application: Shopee bets on the mobile wave, they believe thatbuying and selling on mobile will be the inevitable trend Therefore, Shopeepenetrates 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

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21 Integrating the operating system, delivery and payment support, Shopee is anintermediary that makes online shopping easier and safer for both buyers andsellers

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

31

32 The second factor is that the growth of e-commerce has spurred thedevelopment of digital payment methods The total number of Shopee orderspaid through AirPay e-wallets across the region has increased by 4 times Inaddition, the number of retail stores accepting payments via AirPay wallets inVietnam has also doubled in the past year

33

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

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

40 It is easy to see that the e-commerce market in Vietnam is becoming morevibrant 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 among78% of countries in the world with electronic transactions and among 38% ofcountries with consumer protection policies; 45% of countries have a personaldata protection policy and out of 75% have a Cybersecurity Law

4 of Decree No 52/2013 ND-CP, Shopee always has strict checks for all of itsgoods to prevent illegal trade in counterfeit goods

47

48 Tax

49 According to Law No 38/2019/QH14, Vietnam's tax policy and managementsystem is increasingly being improved to meet the requirements of businessdevelopment and improve the competitiveness of the economy

50

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 theminimum 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 doingbad businessp Fishermenwho are busy participating in the rules such as: socialinsurance, health insurance, health insurance, and other regulations n l burpitruh 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 itsextensive economic integration process, but it also shows considerableresilience 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 activelydeveloping economy, the epidemic has had long-lasting consequences forhouseholds – in January 2021, the income of about 45 % of surveyed householdshas decreased compared to January 2020 If Vietnam is successful in fighting thevirus, GDP is expected to grow by 6.6% in 2021 At the same time, export-oriented manufacturing industries has grown well, while domestic demand hasimproved significantly

59

60 Exchange rate stability

61 The buying and selling price of USD at commercial banks at the end of 2019 wasalmost unchanged compared to the same period in 2018, fluctuating around23,100 VND/USD (buying in) and 23,250 VND/USD (selling out) Thisdevelopment is in contrast to previous years, when the VND/USD exchange ratealways closely followed developments in the international currency market

62

63 Thanks to the government's macroeconomic stabilization policy, the VND/USDexchange rate has always been operated in a stable direction This trend has notonly been maintained since 2019 but also fluctuated in a narrower band (about1%)

64

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

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68 Labor costs

6

69 Paul Tonkes, Cushman & Wakefield Logistics & Industrial Services Director, said:

“The low cost of doing business, the booming middle class and the flexibility tochange regulations have helped Vietnam rank 69 out of 190 countries worldwide

in the World Bank's "Ease of Doing Business Rankings", above the APACaverage 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 toShopee 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 thepast 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 ofgasoline 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 recoveredafter 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 impactthrough savings and investment channels Inflation at this level will helpmanufacturers buy raw materials and use labor at a reasonable price In addition,they help stabilize the currency market Low inflation supports investors ininvestment 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 employeetraining programs, or programs for students preparing to graduate such as theGlobal Leaders Program Accordingly, the program includes a 2-year roadmap,reaching a managerial position With efforts invested in people, Shopee is always

86.1 Social

87 Income

88 Spending habits are also an important factor in the economic environment, withthe impact of the Covid-19 pandemic over the past two years also dramaticallychanging 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 fromdirect 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 goldenpopulation with the proportion of citizens of working age accounting forapproximately 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 stronglyaffect the shopping behavior of customers High income makes it easy for buyers

to spend money on products with preferential prices, which Shopee is currentlyavailable

notconsider and offer suitable marketing programsto attractcustomers Forexample: the need to buyclothes, flowers, quills, candy cakeso, cars boominginto the5th year, Shopee offerssuper bad price programs in the airor ihave avideo 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 popularplatform, attracting millions of visitors However, the items sold on this platformoften question the quality

101

102 Therefore, users are still skeptical when placing large value orders To solvethis 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 tostatistics, Vietnamese people spend a lot of time watching TV online and usingsocial networking platforms Accordingly, Vietnamese people spend an average

of 2 hours 40 minutes and 2 hours 21 minutes per day for these activities Takingadvantage of this, Shopee has launched many advertising campaigns on multipleplatforms to attract new users

105

106 According to the Digital 2020 report, out of a total of 96.9 million people inVietnam, 68 million people have access to the Internet (equivalent to apenetration 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 usesmartphones In addition, 65% own a smartphone, and 32% have at least onetablet

107

108 Through these numbers, we can see that the level of penetration of informationtechnology into the lives of Vietnamese people is extremely large Adaptingquickly to the development of society, e-commerce has become an indispensablepart of modern society

109

110 New technology

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

112

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

114

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

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

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 theapplication to bring the most convenience to consumers Shopee hasdemonstrated the understanding of its customers by paying via Shopee Pay andcredit cards to save time and costs, improve security and convenience toincrease customers' purchasing power

123

124 Speed of technology transformation

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

technology by 2020 However, infrastructures for the digital economy, such aselectronic payment infrastructure, infrastructure e-distribution, human resourceinfrastructure for e-commerce and information technology, and informationsecurity infrastructure is still limited.

126

127 The speed of digital transformation of the logistics industry is still quite slow, thetechnology application level of companies in the industry is still low (about 40% in2018), affecting the order processing speed of the e-commerce industry

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 protectpersonal data of consumers

133 In addition, the legal system and tax administration in Vietnam are alwaysupdated and revised in a timely manner, thereby quickly improving to helpbusinesses stabilize their business The stable political situation createsfavorable 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-commercehas a combination of traditional regulations with modern ones The law on e-commerce has the interference of legal regulations in many branches of law Thelaw on e-commerce has a certain lag but quickly becomes obsolete The law one-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-commerceindustry Belonging to the top industries encouraged and prioritized fordevelopment 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 greatopportunity to grow your online business

139

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

162

163 Risk of breach of breach, data loss.

172

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

188

189 According to the Vietnam e-commerce 2022 white paper, our country has up to74.8% of internet users participating in online shopping In which, the items thatare bought the most online are clothes, shoes and cosmetics (69%), householdappliances (64%), technology and electronics (51%) respectively

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191

192 Shopee

193 According to the chart, Shopee is currently the most popular e-commerceplatform 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 commerce platform of Alibaba Group, China

e-196

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

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199

200

201 This Shopee currently has over 160 million active listings with around 6 millionsellers, including over 7,000 leading brands and distributors As of 2017, theplatform has recorded 80 million app downloads, over 5 million in Vietnam Thisplatform is currently working with more than four million suppliers with more than

180 million products Accordingly, the leading e-commerce site continues to beShopee with nearly 89 million visits in the quarter

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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 2,300billion)

204

205 In 2021, Shopee Vietnam's net revenue is nearly 5,700 billion VND

206

206.1 Market growth

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 thate-commerce is becoming an increasingly lucrative option for businesses

209

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

211

212 Online sales are expected to continue to grow and account for a larger share ofthe retail pie By 2026, it is estimated that world e-commerce retail sales willexceed $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 stronggrowth 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 billionUSD By 2025, the growth rate of e-commerce in our country can be up to 29%,reaching 39 billion USD

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

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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

18

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

226

227 Vietnam's economic growth

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

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236 Foreign direct investment will continue to pour into Vietnam's e-commercesector in 2022 Companies from China, Japan, South Korea and the UnitedStates have expanded their digital presence on the internet local e-commerceplatforms

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238 Shopee company growth

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

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

246

247

248 Accordingly, leading is Shopee with nearly 89 million visits in the quarter, upabout 14% compared to the third quarter of 2021 and about 30% over the sameperiod last year Shopee is also the number one e-commerce site on bothAndroid 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 platformshave negative growth, with Tiki being -20% and Lazada being -1%

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260

22

268

269 More than 1,000 local sellers have surpassed 100,000 USD in revenue (nearly2.3 billion VND) in 3 Shopee's year-end shopping festivals at 9.9, 11.11 and12.12

270 Sellers entering business on an online platform for the first time also recordedsignificant growth in the year-end shopping season On November 11 alone, thesales of new sellers on Shopee increased 18 times compared to the averageweekday

271

272 The “ShopeePay Near You” feature is a new feature that helps users discovermany offers when paying at stores near them After implementation, this newfeature 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 sustainablebrands Many partner brands have recorded strong growth and achieved newmilestones 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 (nearlyVND 2,300 billion)

274

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

279 Direct-to-consumer (DTC) companies are also investing in online communities

to personify their brands, increase customer retention, and overcomeskyrocketing advertising costs

285 Direct-to-consumer competition is rising

286 Although retail business doors have reopened, ecommerce sales aren’tslowing, 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 performancemarketing–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 shortterm, 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

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299 Consumers continue to demand personalized shopping experiences, even asregulations make data tracking harder, and the biggest players phase out supportfor 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 createlong-term relationships with customers

303

304 Brand communities are building customer loyalty

305 Brand communities become key to building trust and brand equity, andimproving 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 brandmarketing 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 uniquecustomer 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 arefocusing on social-first approaches like behind-the-scenes livestreams, videoconsultations, and personalized product recommendations

319

320 Vietnam e-commerce

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

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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 increasetheir combined household income through online sales Vietnam e-commercegrowth in 2022 is forecasted to reach 16.4 billion USD in revenue, the first timethe industry has reached this value

324

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

326

327 There is a high demand for Vietnamese agricultural products and exporters canexploit the growth of Vietnam's e-commerce sector to promote and market theseproducts By partnering with manufacturers, distributors and other industryplayers, online merchants can support the growth of the agricultural industrythrough 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 traditionalpayments The digital transformation of the Vietnamese banking system enablesleaner systems to make services easier for consumers to access With moreinnovation, it can help accelerate the e-commerce sector as more consumersmaximize 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

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

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334 The customer shopping journey will gradually be personalized This will be thekey to attracting attention and retaining consumers E-commerce platforms haveinvested in AI and Big Data to aggregate and process information, therebydesigning their own experiences

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336 SHOPEE

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

340

341 In the first 3 major sales seasons of 2022, the statistics of the top 5 best-sellingproducts of the Beauty and Women's Fashion Industry clearly show the buyingtrend of Buyers:

352 In 2021, 1 in 6 orders will be from new Shopee users, while the number ofShopee 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 comingyears and will reach $39 billion by 2025, ranking second after Indonesia ($104billion), 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 hasthe second highest percentage of consumers shopping online in the region, afterSingapore

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 ranks11th among countries (58.2%), on par with the global average demand, higherthan 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 growfrom $120 billion in 2021 to $234 billion USD in 2025 It is forecast that theaverage online shopping value of online consumers will continue to increasestrongly, from 381 USD/person in 2021 to 671 USD/person in 2026 With a rate of49% , online shopping consumers in Vietnam are only behind Singapore (53%),higher than Indonesia and Malaysia

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 thesecond largest market in Southeast Asia, only after Indonesia in the context ofgreat development after the COVID-19 pandemic

375

376 Metric.vn data shows that Shopee, Lazada, Tiki and Sendo are the 4 mostprominent e-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

378 In second place is Lazada with a market share of 20.9%, equivalent to VND12,539 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 asTiki, Lazada and Sendo combined Lazada is currently ranked 4th with 20.6million visits, followed by Tiki's 5th place with 17.8 million visits And Sendodropped to 11th place with nearly 5 million hits

30

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

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

392

393 Leadership Team, consisting of Head-Business Intelligence, chief productofficer, Head-Data Privacy, Chief commercial Officer, Director-Marketing growthand COO The Shopee leadership team has a wealth of experience in strategicplanning, consulting, financial management, communications, and filmprogramming 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 LondonSchool of Economics and Political Science (LSE), Miriam College, the Ateneo deManila University, and the University of California, Berkeley

394

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

396

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

398

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