$Sea Ltd(SE)$ gained more than 17% last week since Indonesia first announced rules that took immediate effect to prohibit social commerce companies from facilitating direct e-commerce payments on their platforms. This has dealt a major blow to Sea’s greatest competitor TikTok Shop in Indonesia, where it is the social media’s largest market for its e-commerce feature.
TikTok is required to segregate its e-commerce feature from its popular video-scrolling service, non-compliance of which will risk being barred from business in the country.
TikTok Shop has been fast growing popularity among a young, flourishing fan base in Indonesia that is Southeast Asia’s biggest e-commerce market, and has been posing increasingly intense threat to Shopee, Sea’s e-commerce platform.
With it greatest e-commerce competitor being removed in the largest market in Southeast Asia, Sea could heave a sigh of relief, though not for long.
With Sea’s renewed focus on market share expansion at the expense of profitability in the face of rising competition, hopefully the company could successfully reinvent itself to stay relevant post pandemic and remain competitive amidst rising competition from the likes of $Amazon.com(AMZN)$ and $Alibaba(BABA)$ and even super apps $Grab Holdings(GRAB)$ in the new digital banking battleground.
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Comments
SE has less competition? What about Amazon and Alibaba? It’s a huge challenge for SE, cannot make good margins in this business, especially since SE is far behind competitors on the logistics infrastructure…
SE has less competition and great management that was able to raise cash at the peak mania.
Oh, SE has less competition and great management that was able to raise cash at the peak mania.
SE sill trade at 70 by next Earnings Release .Its time to buy now.
I expect at least a retest of 39/40 before going higher.
Great ariticle, would you like to share it?