Core Viewpoint - After experiencing layoffs and losses in previous years, Southeast Asian e-commerce platform Shopee has shown signs of recovery in 2024, with significant growth in its financial performance [1][2]. Financial Performance - In Q4 2024, Shopee generated revenue of $3.7 billion, a year-on-year increase of 41.3%, accounting for 74% of Sea's total revenue of $5 billion [3]. - For the entire year of 2024, Shopee's GMV surpassed $100 billion for the first time, growing by 28%, with total orders exceeding 10 billion. Shopee's revenue for 2024 reached $12.4 billion, also representing 74% of Sea's total revenue of $16.8 billion [3]. Market Share and Competition - Shopee's market share in Southeast Asia has declined from 40% in 2018 to approximately 30% currently, while TikTok's e-commerce share is around 15% and is expected to rise to 20% by 2025 [4][11]. - In Vietnam, TikTok Shop's market share exceeds two-thirds of Shopee's, and in Thailand, TikTok holds about 35% compared to Shopee's 55% [12]. Strategic Adjustments - To improve monetization, Shopee has increased commission and advertising revenue ratios, with Q4 advertising revenue growing over 50% year-on-year [7]. - Starting January 2024, Shopee gradually increased service fees by 1 percentage point, with a 2 percentage point increase in commission rates beginning in July 2024 [7]. Logistics and User Experience - Shopee's logistics service, Shopee Express (SPX), achieved nearly half of its Asian orders delivered within two days in Q4, reducing unit logistics costs by $0.05 [8]. - Approximately 90% of Shopee's orders are delivered by SPX, with logistics costs in Vietnam averaging around $0.45 per order [8]. Content Ecosystem and Live Streaming - Live streaming has become a significant part of Shopee's strategy, accounting for 15% of total orders in Southeast Asia, with a 40% and 30% year-on-year increase in daily active streamers and viewers, respectively [8]. - However, only about 20% of live streaming GMV is driven by content, indicating a reliance on discounts rather than user engagement [9]. Performance in Brazil - Shopee's sales in Brazil doubled in 2024, reaching approximately 600 billion Brazilian Reais (around $10.3 billion), which is twice the revenue of Amazon and 40% of Mercado Livre's [14]. - In Brazil, Shopee has achieved profitability, with over 40% year-on-year growth in monthly active buyers [15]. Future Outlook - Shopee anticipates a GMV growth of around 20% for the year 2025, indicating a cautious approach amid increasing competition in the overseas e-commerce landscape [18].