Shopee MY’s report card for H1 2019

Shopee MY’s report card for H1 2019

EC Milo
Friday, 12 July 2019

ecInsider News

Shopee recorded stellar performance on all fronts of our business during H1 2019, which was supported by the increased shopping activities particularly during Chinese New Year and Hari Raya, with more than a 3-fold increase from 2018’s corresponding festive periods.

The first half of 2019 went by in the blink of an eye. As the leading e-commerce platform in Malaysia, we have seen major developments in the online retail world that have benefitted the greater Malaysian population as well as contributed positively to the growth of our digital economy.

Based on empirical data, the first half of the year is usually quieter in the e-commerce world with shopping activities increasing towards the tail end of the year. However, Shopee recorded stellar performance on all fronts of our business during H1 2019, which was supported by the increased shopping activities particularly during Chinese New Year and Hari Raya. We achieved more than a 3-fold increase from 2018’s corresponding festive periods.

Some of the notable results during Raya 2019 include:

  • ILHAMIC RESOURCES, a Shopee seller from Kelantan selling serunding who used to make RM7 monthly on average managed to rake in RM3,000 worth of sales during Ramadan.
  • HAFYA FELLA, a muslim fashion seller from Terengganu who used to do a monthly sale of RM450 achieved a 77-fold uplift in sales, achieving a gross monthly revenue of RM36,000 on Shopee alone.
  • DOMINO’S PIZZA sold all 500 regular-sized pizzas in 5 minutes.

Our growth was further fueled by the introduction of our next-day delivery service in June which served to disrupt the logistics sector in Malaysia.

Aside from the usual Gross Merchandise and Orders growth, Shopee also achieved the following year-on-year results:

  • Shopee has encouraged Malaysians to embark on the entrepreneurial journey and provided a platform for entrepreneurs, local SMEs and micro-businesses to sell on a national level. Through proper market education and strategic partnerships with PKNS, MITeC Sarawak, MDeC, Ministry of Domestic Trade and Consumer Affairs and more to run our free sellers’ workshop, Shopee University, we have seen a 25% growth in our seller base from around 400,000 sellers to more than 500,000 sellers.
  • To-date, Shopee Malaysia employs more than 600, a 50% increase from the same period in 2018. The employees in Malaysia are trained to serve the Malaysian and part of Singapore’s markets. The employment and job creation contributes to the growth of Malaysia’s consumption economy.
  • In just a year, Shopee has doubled the number of downloads of our App from around 10 million downloads to 20 million downloads to-date. This was achieved through creative branding and communications efforts, successful and exclusive brand tie-ups and strong word-of-mouth advocacy by Malaysians in general; a testament that our product serves the demands of the markets.

We have no qualms that H2 2019 is going to be a vibrant season that is poised for strong growth with the 9.9, 10.10, 11.11 and 12.12 sales, not just for our industry but also the entire network of industries that support e-commerce including the banks, telcos and logistics providers.

However, it is important we do not rest on our laurels. Besides the sales campaigns lined up for the rest of the year, we will continue to scale our efforts in line with the Government’s initiatives in accelerating growth of e-commerce as part of the National eCommerce Strategic Roadmap.

One of our missions has always been to better the lives of consumers and small businesses with technology. We believe in the transformative power of technology and want to solve social and lifestyle problems for retailers, entrepreneurs and consumers by bridging the gap between all stakeholders and creating greater convenience that would change the way retailers trade and people live. As such, we have identified the following areas:

  • We will allocate our human resources to Government programmes to run more free sellers workshops for Malaysian businesses and individuals keen on becoming an online entrepreneur. The workshops will provide them with the knowledge on e-commerce and necessary skills to digitise businesses which in turn can bring improvements to their lives, allowing them to have multiple streams of income.
  • With reference to the recent comments on kenaf (Hibiscus cannabinus) by Deputy Primary Industries Minister Datuk Seri Shamsul Iskandar Mohd Akin, we fully support the ministry’s efforts in developing the kenaf industry. As it is, we have a couple of kenaf-made products that are being sold on the platform. We would like to encourage local farmers and entrepreneurs who are involved in the kenaf industry to come onboard Shopee and sell their kenaf-made products such as mattresses, travel mat, pillow and even handbags, especially those who are already on Kenaf Mall, an initiative by the National Kenaf and Tobacco Board (LKTN).
  • We understand the need to make the inaccessible, accessible and e-commerce is a great platform for sellers to break geographical boundaries by putting the spotlight on these kenaf-made products. Similarly, one of our ongoing initiatives in Sarawak is to help local sellers showcase their products including the famous kek lapis, black and white pepper and wood-based and rattan products on Shopee.

We have made it our mandate to ensure that Malaysia is on track to achieve its projected annual e-commerce growth of 20% in 2020. We will continue to work and support to the best of our abilities and capacity to benefit the local economy and Malaysians as we strive towards a high-income nation by 2024.