30 Aug 2021
How Shopee is Reshaping E-Commerce in Brazil
The Index Today
Shopee has become Brazil’s most popular shopping app where users can win coupons through in-app games. The Singapore-based shopping application has transformed the e-commerce sector in Brazil and is continuously attracting customers everywhere through its low-cost platform.
Shopee has built an edge in the competitive industry by combining shopping and gaming under one roof with the help of its mobile game unit Garena, Creator of “Free Fire”. This game has been Brazil’s most downloaded game for eight consecutive quarters.
Back in Singapore, Shopee has become the region’s most visited e-commerce application, beating rivals such as Lazada and Tokopedia, both owned by Chinese and Japanese. The key strategy Shopee used to beat the competition was to analyze their systems for problem-solving and gain a head start through implementation.
On the other hand, the covid pandemic also played a major role in boosting the popularity of the app in Brazil as more customers moved towards online shopping. E-commerce sales in Brazil went up by 44% to $42 billion according to data released by Brazilian Payments Company EBANX.
Sea’s entrance into the Brazilian market is just one side of the global ambition of the company. It is considering options to begin startups in Latin America and in other regions in the near future. Currently, Shopee has partnered with social media influencers in Chile, Columbia, and Mexico to help increase brand awareness and gain a strong local footing. The company has estimated the value of goods sold last year reached 12 billion reais.
One of the key challenges face by Shopee in Brazil is logistics and delivery. There are a few reliable private courier companies that have partnered with the company for delivery services of goods within the region. Shopee aims to partner with one Logistics Company per country to help make logistics more manageable.