Shopee posts over 100% growth in revenue, orders in 1Q

by DASHVEENJIT KAUR/ pic credit:

E-COMMERCE platform Shopee recorded a 110% and 111% growth in adjusted revenue and gross orders respectively for the first quarter of 2020 (1Q20).

Shopee Malaysia marketing lead Lok Weng Lum said as a group, Shopee recorded resilient growth on all fronts of its business for 1Q20 compared to the same quarter last year.

“We have seen growth in the past four years since our inception. We have been able to achieve these amazing results as Malaysians continue to place their trust and continue to make purchases with us,” he said during the virtual Maybank Shopee Credit Card launch yesterday.

Lok said Shopee’s rapid growth has also been made possible as it continues to seek out strategic partnerships such as the one with Malayan Banking Bhd (Maybank) and Visa Inc.

“This collaboration with Maybank and Visa Inc is one that intends to help Malaysians with the rising cost of living amid the socio-economic pressures.

“The card was designed to answer the needs of today’s consumers where shopping preferences have shifted.

“There is now a growing reliance on e-commerce for their daily essentials and more compared to several years ago, when consumers would only purchase things online if they are unable to get it offline,” he said, adding that they foresee 40,000 sign ups in the first year.

Maybank community financial services group CEO Datuk John Chong said the partnership with Shopee will allow the group to tap into Malaysians’ e-commerce spending growth, giving the group a competitive advantage to further strengthen its leadership in the cards business.

“Between 2017 and 2019, we saw a 43% jump in our card billings for e-commerce platforms which indicates a significant shift towards online shopping,” he said during the virtual press conference yesterday.

Chong also highlighted that recent events, including the Movement Control Order, have continued to fuel this adoption as more Malaysians shift to online shopping for their everyday essentials.

“Between January and May 2020, we saw about 300% increase in new e-commerce users among our credit card holders.

“The launch of this card cannot be timelier as it allows us to bring benefits that complement Malaysians’ new lifestyle and shopping habits. We will also be able to tap on the tremendous growth of e-commerce to further strengthen our position as the leader in the credit card market,” he added.

Additionally, according to Visa’s country manager Ng Kong Boon, the data in Malaysia showed that one in eight Visa cardholders who did not use e-commerce last year have made their first online purchases this year.

“We are also seeing that e-commerce growth is now five times faster than face-to-face shopping.

“Based on the Visa Covid-19 sensor report, approximately 80% of Malaysians indicated that they expect their online spending to increase. About 60% also indicated that they think online shopping is more convenient than visiting physical stores,” he added.

According to Shopee, Malaysians between the ages of 21 and 65 can apply for the card starting today, and there will be a lifetime annual waiver for the card.

“As the Maybank Shopee Credit Card launch is part of the 7.7 Mid-Year Sale happening now till July 7, early birds who sign up for the card by then will receive Shopee Vouchers worth RM500 when they spend RM300 within 45 days on a ‘first come, first served’ basis.

“On top of that, the 7.7 Mid-Year Sale gives all Shopee users a 50% Coins Cashback on a daily basis,” it said.