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The Covid-19 pandemic has been transformational—changing shopping behaviours as consumers seek greater convenience and value. It has also accelerated major shifts in the retail landscape, where 70 million people in the region have become digital consumers since the pandemic began1.
Now, even as pandemic restrictions eases further with traffic returning offline, leading e-commerce player Shopee continues to see huge headroom for online growth in the region. The platform has also managed to capture a loyal and active consumer base, one where online shopping has become an integral part of their lifestyles.
Unlocking new growth drivers 
At the annual Shopee Brands Summit on January 13, Shopee’s chief operating officer, Terence Pang, shared that Shopee is focusing on a few key areas to drive growth for the platform and for brands. This includes reaching new consumer segments, strengthening engagement and supporting brands with exclusive programmes to scale their presence.  
As demand for online shopping increases, Shopee is expanding its outreach to non-metro areas to serve more consumers and help them benefit from the convenience of e-commerce. In partnership with third-party logistics partners, Shopee increased its geographic coverage to 80% across Singapore, Philippines and Vietnam, further increasing coverage and efficiency of fulfilment and delivery for sellers and consumers.
Shopee has also been growing the premium segment to serve consumers who are unable to access premium brands or products in physical stores. On Shopee Premium, an exclusive in-app space for premium and luxury brands, over 50% of purchases came from non-tier one cities in the past year, a purchasing trend that is likely to continue as more go online.
Part of what makes buying on Shopee appealing is also the integration of digital payments that makes the checkout experience safe and seamless. Shopee observed stronger digital payments adoption coming from outside big cities with a 2.3x increase in transactions using ShopeePay, Shopee’s mobile wallet.
Pang also emphasised that digital-first mindsets and habits that were adopted during the pandemic are set to stay for Shopee’s consumers.

“Our consumers have integrated Shopee into their lives, and we believe that this behaviour is going to stay on beyond Covid-19,” he said.
While there are clear opportunities for businesses to scale their online presence and capture the growing wave of new digital consumers in Southeast Asia, brands need to continue adapting and evolving in how they reach, engage and retain customers online to succeed, and Shopee is right behind them on this journey.
“Today, shoppers expect much more out of their online shopping experience, especially when they go to e-commerce platforms as their first stop. We are here to help businesses take their engagement with customers to the next level, in the next normal,” said Pang who announced new initiatives to help brands grow their reach.
To capture the hearts and minds of its users, Shopee continues to integrate lifestyle elements into its app with games, livestream shows, and other entertaining content. This has helped the majority of brands on Shopee Mall — a space for brand owners and authorised distributors — thrive and see more than double their year-on-year revenue.
By fostering closer collaborations with brands to develop hyperlocal strategies for each market , five brands (L'Oréal Group, Oppo, realme, Samsung and Xiaomi) have even unlocked new milestones of at least US$100 million in sales revenue on Shopee, last year.
They are part of the inaugural “Shopee $100 Million Dollar Club” which was introduced to reward and recognise brands for their efforts in reaching this milestone. Members are awarded perks such as a dedicated regional brand campaign. 


Serving 'always-on' shoppers
Online shopping has also given rise to the always-on shopper as consumers have become familiarised with mega shopping events on e-commerce platforms and are always hunting for the best deals. To bring greater excitement and value to these shoppers all-year round, Shopee is packing its calendar with more shopping events.
For a start, consumers can look forward to the first mega shopping event of the year on March 15. Shopee Premium, which has seen its traffic grow eight times since its launch, will also launch four new regional campaigns to cater to the increasing demand for premium and luxury products online.

Aside from introducing new sales events, Shopee is also enhancing the shopping experience for its users by replicating in-store sampling counters to cater to its customers who might prefer to get a physical sense and feel of products before purchasing online. The platform will be hosting a sampling channel in the FMCG, Beauty and Toys, Kids and Babies categories where shoppers will be able to buy sample-size products, and receive store vouchers for their next purchase.
The channel will also help shoppers discover new brands and eventually convert them to buyers. When piloted at last year’s 12.12 shopping event, participating brands recruited up to 90% of new buyers to the brand.

During a C-suite forum at the summit where leaders from L'Oréal, HP, Adidas and Procter & Gamble (P&G) shared their perspectives, P&G’s Shankar Viswanathan, agreed that “experience is critical”.
“In the old world they could touch and feel the products in the stores but now most of them are buying products online which you can’t touch and feel,” said the senior vice-president at P&G Singapore, Malaysia and Vietnam and e-business leader, emerging markets, APAC, Middle East and Africa.
Boosting personalisation and engagement
To continue delivering more immersive, personalised and entertaining experiences to shoppers, Shopee will also deepen the use of augmented reality (AR) and artificial intelligence (AI) technologies, including upgrading its popular engagement features. 
Shopee BeautyCam, an augmented-reality tool where shoppers are able to try-on make-up virtually, will be enhanced with new functions including more colour shades and filters to give shoppers a more full sensory product experience.

Also speaking at the panel discussion, Ms Manashi Guha, L'Oréal’s CPD general manager (SAPMENA region), said: “More and more consumers are wanting personalisation. BeautyCam’s numbers show that there has been way higher engagement and much higher conversion.”
To date, BeautyCam has helped to drive conversions of up to 3x higher for beauty brands like L'Oréal Paris, Maybelline, Revlon, Etude House and 3CE. Shopee will be partnering with more beauty brands to implement this feature for an even wider variety of products. 
Shopee has also seen how users seek real-time engagement as part of their shopping experience, and continues to expand its livestreaming capabilities. 
Mr Ng Tian Chong, Managing Director of Greater Asia at HP, shared that working with Shopee and taking advantage of the engagement tools on the platform has helped to create a more “immersive experience” for customers.

“In order to grow this immersive experience, we've taken advantage of opening up our virtual demo centres online but combine that with a Shopee Mall “street”, where our customers can essentially have a demo but at the same time, walk the street, and then get product information and discount coupons,” he said.
Using artificial intelligence, Shopee will also recommend more personalised livestream content and deals to its users based on shopping behaviour and user interests.
Enhancing brand visibility with smarter tools 
A study conducted by Shopee found that less than half of shoppers come to the app not knowing which brands they will buy from during mega sale campaigns. Instead, they use the platform to discover new brands and products.
To help brands and sellers stand out and gain more visibility among these shoppers, Shopee is deepening its collaboration with Meta, and will be one of the first e-commerce platforms to integrate Facebook Ads into its Shopee Seller Centre where millions of sellers will be able to create and manage ad campaigns easily and quickly.
This feature also makes it easier for brands and sellers to drive more customers from Facebook to their official stores, boosting business.
Brands on Shopee Mall can now also purchase new banner display ads on the app homepage to maximise their visibility and presence.
A new Customer Intelligence Dashboard will also allow brands to gain access to more insights on shopper demographics and segmentation, empowering them with timely data to customise their e-commerce and marketing strategies for greater customer satisfaction.
“By working together with our brand partners, we will continue to expand and enhance Shopee Mall to serve more customers and scale to greater heights together,” said Mr Pang.
 
 
1Facebook and Bain, Southeast Asia, the Home for Digital Transformation report


Elevating e-commerce: Capture the next wave of growth in Southeast Asia 

Unlocking growth on e-commerce

Shopee

Shopee works closely with brands to bring memorable shopping experiences to consumers.

Shopee COO, Terence Pang, delivering the keynote speech at the Shopee Brands Summit 2022 

Members of the C-suite forum at the Shopee Brands Summit (from left): Mr Shankar Viswanathan, Senior Vice President - Singapore, Malaysia and Vietnam and E-Business Leader, Emerging Markets, Asia Pacific, Middle East and Africa, Procter & Gamble; Mr Ng Tian Chong, Managing Director, Greater Asia, HP; Ms Manashi Guha, CPD General Manager - SAPMENA Region, L'Oréal’ CPD; Mr Philip Ho, Vice President, South East Asia (SEA) Commercial, Adidas and Amanda Eng, Regional Marketing Lead at Shopee.

Shopee is partnering with more beauty brands to implement augmented reality tool BeautyCam which enables shoppers to try on make-up virtually.


Shopee introduces first 3.15 Consumer Day mega shopping campaign of the year to offer more excitement and deals all-year-round

HP using Shopee Live to engage with users and drive higher visibility during their Super Brand Day campaign.

Business

Beyond offering great deals, Shopee, together with its brand partners, is innovating the online brand experience as consumer habits evolve.
