Greetings to everyone.

Welcome to our presentation for Round 2 Shopee Ultimate Case Challenge

2022, and our team Dui De Hoan Hy is presenting to all of you.

Our presentation will be divided into 3 parts: Opportunities with Market Dynamics and Key
Players, Potential Challenges and Recommendation where we analyzed how Shopee fits into this
market and suggested the strategy to approach Social Commerce.

Let’s get started with the Opportunities section - Market Dynamics, the first factor is Customer
Behavior. During COVID-19 period, people started to use E-commerce to shop for groceries. At the
peak of pandemic, Shopee has released a campaign “ở nhà không khó, ship Shopee lo” to encourage
people to stay home, as well as promote itself, and that seems to a successful promotional plan as
the number of buyers and new buyer in HN and HCMC - two hotspots of COVID19 has taken a
large percentage of the total. That has formed a habit of purchasing everything online for the
customers. Excessive usage of social media platforms is also a result of staying in. A survey by
DataReportal showed that the number of social network users has been ranging from 300 million to
2,9 billion since COVID crisis. Shopee has also taken advantage of social media; using the next
sales season on August 8th as an example, Shopee has uploaded this information to 4 most popular
sites in VN which are Facebook, Instagram, Tiktok and Youtube.

Next, we will have a look at the Social Commerce trend in Vietnam. Social network users start to
get familiar with short videos reviewing a product with attached links, this shows a positive sign
that Social Media Marketing has become popular. Another form of social commerce is
livestreaming for selling goods. This is widely applied in a number of platforms, and Shopee is not
an exception. It is proven by the data that in the first half of 2022, the more people adopted live
streaming, the more orders were placed, and that resulted in the growth in sales compared to 2021.
That is a stepping stone for Shopee to join into this promising market.

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Coming to the very last section, our suggested strategy to approach Social Commerce for Shopee.
Our suggestion is to launch an app called “ShopeeVerse'' - a social platform of Shopee. There are 2
reasons for launching this app. One is, Shopee does have the features of a social media platform,
however, they were outshone by other Ecommerce features. Two is, on September 1st 2022,
ShopeeFeed will be closed, therefore, Shopee needs a new space for their users to interact. Social
Commerce is social media and e-commerce. Since Shopee has already been a strong E-commerce
app, this new social app should be launched to strengthen its social factors, also create a community
of Shopee users. For the long term, when the social platform is strong enough, Shopee can merge
the features of the app to its Ecommerce app to pursue social commerce. Main features of
ShopeeVerse will include: GroupBuy - a feature of Shopee Singapore, Product Review through
writing posts & video, Voucher Hunting, Shopee Live. And the Key Feature to make this app stand
out is to "Scan and simulate products under 3D view", this will be a feature for Product Review
sessions, it will give the consumers a closer look at the products.
In chapter 1, we are going to discuss the opportunities of Shopee when tapping into the social
commerce market. This chapter will be divided into 2 small sections, which are market dynamics
and key players. The very first section - Market dynamics will comprise 3 smaller factors: customer
behavior, customers’ social media approach, and Social Commerce Trends in Vietnam

First and foremost, during covid19 pandemic, everyone has to stay in, which results in the
formation of shopping habits. They started using e-commerce apps to shop for groceries and
necessities. Even during July 2021 - peak of pandemic in VN, Shopee has launched a campaign “Ở
nhà không khó, có Shopee lo” to encourage people staying home. It is evident that the number of
buyers in HN and HCMC - two hotspots of COVID - take up a large percentage of the nationwide
total number, and Shopee has also attracted a large number of new buyers to enter its ecommerce
site. Having a look at the Top categories table, it is obvious that the range of merchandise in Shopee
has covered all of the necessities of its customers. Several merchandise in Home and Living, or
Health and beauty, which are believed to be well purchased at the stores, can be now purchased
through Shopee. It has proved that Shopee has earned the trustworthiness and loyalty from its
customers through the pandemic period.
Another factor to investigate is the customers’ social media approach. According to a survey by
DataReportal, the number of people engaging in the social network was ranging from 300 million to
2.91 billion users, which proves that the usage of social media platforms has been more popular
than ever. In Vietnam, the 4 most-used social platforms are Facebook, Instagram, TikTok and
Youtube. In the era of IoT, everything is published online and social platforms seem to be the
connectors between human and information. Taking Shopee sales season of August 8th as an
example, Shopee has just announced the next sales season, and this information has been uploaded
to 4 most-used platforms in Vietnam and received an enormous number of interactions.
Finally, we will have a look at the Social Commerce Trends in Vietnam. Uploading short videos
under 3 minutes on social platforms has become popular recently, and this type of media has hit the
insights of the viewers, who are fed up with long videos and want short and “instant”
entertainments. Several reviewers have taken the advantage of this and released a series of short
videos to review or promote some products. By doing that, they slowly engage in social commerce.
Also, live streaming on social networks is common, and it started to form a shopping habit for the
customers to release orders through livestreams. Shopee also followed this trend as it established a
Shopee Live session, where the sellers can directly interact with their customers. It has been proved
by the statistics provided by Shopee, these figures show an upward trend in the interactions between
sellers and buyers, also a sharp growth in sales compared to 2021

All in all, with the analysis of three elements above, Shopee has already equipped itself with many
social functions, and it is evident that Social Commerce is a promising market for Shopee to join in.