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Shopee’s shift to growth shows fear over TikTok Shop’s rise

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Benjamin Cher

Benjamin Cher

Published Thu, Aug 17, 2023 · 08:51 AM
    • The rise of TikTok Shop is viewed by Sea as the biggest threat to Shopee's hold on e-commerce in South-east Asia.
    • The rise of TikTok Shop is viewed by Sea as the biggest threat to Shopee's hold on e-commerce in South-east Asia. PHOTO: BLOOMBERG

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    SEA’S latest quarterly showing, while profitable, missed analysts’ estimates on revenue. Its e-commerce arm Shopee also reported its slowest growth in years.

    But that was not the reason why investors sold down Sea shares, which fell 29 per cent, losing US$16.32 to US$40.58 on Tuesday’s (Aug 15) market close.

    In a shift in strategy, chief executive officer Forrest Li said the group would be investing in growing its e-commerce business, and “such investments will have (an) impact on our bottom line and may result in losses”. In an earnings call, Indonesia was mentioned as a key market for growth in e-commerce.

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    Sea LtdTikTokE-commerceIndonesiaAsean BusinessAsean

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