SEA (formerly known as Garena)

[snowballwisdom]

Sea share price have gone

[BigFatWhale]

Is it Time to buy SEA after a 90% drop?

We did an analysis on SEA and checked if it is a bargain at this current level.

Click Here for the Article:

https://thebigfatwhale.com/time-to-buy-s...nge-of-90/

[CY09]

Sea group has fired its salvo on shopee.

From what used to be a difficult 3 cents daily earn rate, this has now gone to 20 cents daily earn rate. The coins can be used to offset shopee purchase or scanning of SGQR hawker food via shopeepay.

While shopee tends to be cheaper than Lazada, it is now even cheaper. 20 cents may seem little but if one continues to dilligently log in to shopee everyday, this means a "$6 discount voucher" which can be offset a once in a while purchase.

Margins are going to fall while GMV (volume) will continue to rise. The competition is heating up but Im grateful that now I can resume eating my favourite Western food (which has risen by 80 cents) and purchase my new redmi phone as replacement to my ageing 3yrs + mobile

Due to Sea Group's foolishness in dishing out more rewards. Its marketing expense rose 49% year on year. It was the single cost line items which pushed Shopee back to US$428 mil in losses.

I was able to purchase my phone at 10% discount and at a much cheaper price compared to Xiaomi shops and had the luxury of eating Western food once in every 2 weeks. Sea Group is still giving quite a good earn rate of about 14 cents coin daily. I will continue to shop at Shopee and use shopeepay for my hawker given how Sea Group still wishes to burn money to earn market share. In my opnion, their action borders on foolishness in trying to protect market share at constant losses. Every few years, a company backed by oil money *bytedance for this episode* is going to keep attacking you. If cutting margins is your answer, your company will forever be at a loss.

[Bibi]

Sea group has fired its salvo on shopee.

From what used to be a difficult 3 cents daily earn rate, this has now gone to 20 cents daily earn rate. The coins can be used to offset shopee purchase or scanning of SGQR hawker food via shopeepay.

While shopee tends to be cheaper than Lazada, it is now even cheaper. 20 cents may seem little but if one continues to dilligently log in to shopee everyday, this means a "$6 discount voucher" which can be offset a once in a while purchase.

Margins are going to fall while GMV (volume) will continue to rise. The competition is heating up but Im grateful that now I can resume eating my favourite Western food (which has risen by 80 cents) and purchase my new redmi phone as replacement to my ageing 3yrs + mobile

Due to Sea Group's foolishness in dishing out more rewards. Its marketing expense rose 49% year on year. It was the single cost line items which pushed Shopee back to US$428 mil in losses.

I was able to purchase my phone at 10% discount and at a much cheaper price compared to Xiaomi shops and had the luxury of eating Western food once in every 2 weeks. Sea Group is still giving quite a good earn rate of about 14 cents coin daily. I will continue to shop at Shopee and use shopeepay for my hawker given how Sea Group still wishes to burn money to earn market share. In my opnion, their action borders on foolishness in trying to protect market share at constant losses. Every few years, a company backed by oil money *bytedance for this episode* is going to keep attacking you. If cutting margins is your answer, your company will forever be at a loss.

Whenever i buy things, i will compare the price from both Shopee and Lazada. I wonder y most of the time i ended up buying frm Lazada as the price is always lower. Just recently the 11/11 i opted to buy a $250+ luggage frm lazada since they presented me with a lower price than Shopee.

May i ask how was it that u can buy most of yr stuff frm Shopee instead of lazada? I wonder if there is anything i missed out. I do collect vouchers, coins etc.. frm both platform. Though not so hardworking as in daily

[Big Toe]

Depending on what you buy online, best to compare all 4 platforms, shopee, lazada, Qoo10 and Amazon. My experience is while shopee and lazada are quite similar in pricing, Qoo10 sometimes offer much lower prices/better value. Amazon will be for brands/products that do not have a presence in Singapore/Asia.

Lazada and shopee continue to race to the bottom with tik tok joining the race. The key to sustainied profitability is dependant on the collective action of all them combined(and maybe that of new players entering the race). Right at this moment there is no end in sight. Online shoppers will go for the lowest prices, period, those willing to bleed more will get more market share.

Since no one can accurately predict the profitability, the best way to look at this is to see how its subsidiaries fare. Akin to money losing train service and counting on advertising and rental of train station commercial shops. Core business unlikely to break even. But with the volume other opportunities arises.

Overall too sketchy for my liking. Sometimes the best thing is to admit we do not know and do nothing.Everyone else on other forums seems to have a clear idea of SEA Ltd...until they see the earnings.

[CY09]

Sea group has fired its salvo on shopee.

From what used to be a difficult 3 cents daily earn rate, this has now gone to 20 cents daily earn rate. The coins can be used to offset shopee purchase or scanning of SGQR hawker food via shopeepay.

While shopee tends to be cheaper than Lazada, it is now even cheaper. 20 cents may seem little but if one continues to dilligently log in to shopee everyday, this means a "$6 discount voucher" which can be offset a once in a while purchase.

Margins are going to fall while GMV (volume) will continue to rise. The competition is heating up but Im grateful that now I can resume eating my favourite Western food (which has risen by 80 cents) and purchase my new redmi phone as replacement to my ageing 3yrs + mobile

Due to Sea Group's foolishness in dishing out more rewards. Its marketing expense rose 49% year on year. It was the single cost line items which pushed Shopee back to US$428 mil in losses.

I was able to purchase my phone at 10% discount and at a much cheaper price compared to Xiaomi shops and had the luxury of eating Western food once in every 2 weeks. Sea Group is still giving quite a good earn rate of about 14 cents coin daily. I will continue to shop at Shopee and use shopeepay for my hawker given how Sea Group still wishes to burn money to earn market share. In my opnion, their action borders on foolishness in trying to protect market share at constant losses. Every few years, a company backed by oil money *bytedance for this episode* is going to keep attacking you. If cutting margins is your answer, your company will forever be at a loss.

Whenever i buy things, i will compare the price from both Shopee and Lazada. I wonder y most of the time i ended up buying frm Lazada as the price is always lower. Just recently the 11/11 i opted to buy a $250+ luggage frm lazada since they presented me with a lower price than Shopee.

May i ask how was it that u can buy most of yr stuff frm Shopee instead of lazada? I wonder if there is anything i missed out. I do collect vouchers, coins etc.. frm both platform. Though not so hardworking as in daily

If you purchase export sets phone, its much cheaper on Shopee than Lazada. Secondly, if you accumulate 1000 coins (10 dollars), you are able to use it to offset your purchase in addition to other vouchers such as free shipping. Lazada on the other hand has Lazada coins which are useless because it is restricted to certain sellers which typically charge more. Shops such as those selling export sets are not eligible for lazada coins rebate. The result is that all in all package of stacking, shopee wins.

Shopee coins are more versatile as well because it can be used to offset your purchases in the SGQR system which accepts shopeepay. Therefore even if you earn rebates from shopping purchases but do not spend it, it can be spent at your nearby hawker centre. Shopee and Shopeepay design is purposely designed that it has many uses but the result is that margin at Sea Group is razor thin.

During Sep, there was a period of time where shopee was dishing out $2 off no min spend vouchers. 3 in 1 USB cable were being sold at $1.89 and spectacle clothes at about $1. I used the voucher i got each day to buy an item for free. Shopee has removed these vouchers in Oct

In the quarter of Jul-Sep, Forrest Li and management forsake margin in search of GMV, that caused a balloon of losses and cash burn. The mgmt has to be aware it cannot do this because its entire ecosystem is so widespread. If you keep dishing out to me 10% rebate vouchers (capped at $5) in terms of shopee coins, I would gladly accept and use this voucher for my neccessity purchase (this is still ongoing for investors info). However, I would not spend it on shopee platform. Instead, I will use the shopee coins to offset my food purchase at hawker centre. The result is that shopee coins become a true expense and not a gimmick to entice me to buy again. Lazada on the other hand is so restrictive that I am forced to buy another item within 3 months on Lazada platform only. Being a shopper who focuses on neccessity spending, the use of shopee coins far supersedes the use of Lazada Coins.

Sea Group can do the same and restrict shopee coins for only e commerce. But this will mean a loss in market share.

[Bibi]

Thanks CY09 for the explaination. There was a period where i was considering buying some SEA after it clocked its first net profit but didnt took action as most time i find myself buying frm Lazada instead of shopee. Maybe i will try faithfully collect its coins daily. But only 1 coin a day puts me off so i didnt really bother that time.

[CY09]

Hi Bibi, (Weijian allow me to digress a bit)

Below are what I do

1 coin per day log in
2 coins --> For scrolling through shopee store per day for 30 seconds each, Click "Earn more coins", 1 min per day
1 coin--> Feed your shopee pets, about 1 min spent per day
3 Coins--> Water your plant at shopee farm about once every 3 hours, few mins per day
12 coins--> Complete the daily shopee word battle quest (used to be 30 coins a day in Sept), about 15 mins spent per day usually done on my bus ride
1 coin --> Shopee Kiap kiap, 1 min per day

[weijian]

Never a good thing when your competitors team up, in a winner-takes-all-or-most market.

TikTok and GoTo team up in Indonesia, threatening Southeast Asia’s e-commerce giant

As part of the deal announced Monday, Tokopedia and TikTok Shop Indonesia’s businesses will be combined into an enlarged Tokopedia entity, in which TikTok will take a controlling stake of 75.01%. Over time, TikTok will pump $1.5 billion into the entity.

“Tokopedia or GoTo has essentially given up a direct presence in e-commerce and transferred it out to TikTok for a minority stake. Now, this is what the market did not like,” said Garre. “The reality is that the market was expecting GoTo to monetize [Tokopedia].”

The deal comes after Indonesia banned e-commerce on social media platforms in October to protect local merchants, forcing TikTok to halt its e-commerce service TikTok Shop.

https://www.cnbc.com/2023/12/12/tiktok-g...hopee.html

[CY09]

Hi Weijian, you forgot to add this

https://asia.nikkei.com/Business/Technol...TikTok-Sea

In short, Lazada has extra warchest, Tokopedia has larger warchest. What can Sea Group do? Of course add extra warchest utilising the cash flow generative ability of Garena.

3 guns shooting at each other, consumers benefit from the crossfires. Personally Im not complaining because Im getting items at 40-50% off their purchase prices.

But post war, Im quite sure 1 e commerce company will be badly battered in turn crippling its parent company. South East Asia is too small to support 3 profitable e commerce entities. 690 million poulation with half below poverty line means the GMV per capita is unlikley to be as robust as China's. Indonesia own its own contributes to 50% of SEA GMV for e commerce.