The Vietnamese eCommerce market is getting crowded with numerous different companies to choose from, a Financial Times (FT) report says, leading to a clash between Shopee and Alibaba.
Shopee, the article says, has become a favorite for its free deliveries and low fees.
The company, owned by Singaporean tech group Sea, received 62 million monthly visits in Vietnam in 2020’s third quarter, an over 80 percent increase from a year earlier.
Shopee has also had a robust expansion in Vietnam during the pandemic, and that, according to FT, is part of the development in Southeast Asia’s $100 billion digital economy. This market is ready to become a new cornerstone of eCommerce, bringing a spate of rivalries and team-ups trying to build a new digital world and service varied customer needs.
Sea’s rise to prominence shook up a landscape, the article says, that was previously dominated by companies like Grab and Gojek. Sea is backed by U.S. funds from gaming businesses which have been invested in eCommerce and digital finance services.
This is all causing a response: Lazada, backed by Alibaba, is joining with Grab in order to help Grab boost its eCommerce focus. Lazada taps Grab’s services for customer and driver networks, leading users to Grab’s food delivery service. It will also use Grab’s parcel delivery service to ship products, the article says.
Grab president Ming Maa said the goal was “partnering with some of our local services so that we can really integrate the customer experience and provide a much richer experience for our customers,” the article says.
Sea recently purchased Indonesia’s Bank BKE, PYMNTS writes, which lines up with the company’s goal to boost its stature as a FinTech trailblazer.
Sea raised almost $3 billion in a funding round recently. The company was also granted a license in Singapore to run a digital bank.
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