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Investor Presentaiton

High Margin Category + Leading Engagement + Asset-light C2C Model = $$ Given the higher margins in Fashion and Beauty, it's crucial to note that Shopee has the highest exposure to these categories out of all its competitors. - Of Shopee's GMV, ~30-55% is in the Fashion and Beauty categories (varies by country). For example, in Indonesia, this is ~8% higher than Lazada, and ~11% higher than Tokopedia. Relatively cheap and discretionary items (like $2 dresses) are great for markets that are new to E-commerce. The lower order values lower the barrier to trusting online purchases, and the discretionary nature means urgency (i.e. shipping times) isn't as crucial. Reasons For Shopping on Platforms Survey of Indonesian shoppers by ecommerceIQ Top Categories by Platform Survey of Indonesian shoppers by ecommerceIQ com blibli.com Bukalapak JD.ID LAZADA Shopee tokopedia blibli Bukalapak JD.ID LAZADA Shopee tokopedia Effortless Shopping Effortless Shopping Mobile & Electronics 21% 25% 15% 20% 13% 22% Good reputation 14.8% 13.0% 12.9% 13.7% 10.9% 14.3% Fashion 17% 16% 11% 19% 24% 12% Cheaper product price 6.5% 15.1% 11.0% 13.5% 18.0% 13.3% More product selection 6.5% 14.6% 5.2% 11.3% 13.0% 16.8% Beauty 4% 4% 11% 9% 12% 5% Authentic products 13.9% 3.9% 19.5% 7.2% 4.2% 4.3% Health & Wellness 3% 2% 3% 3% 5% 5% Good customer service 12.0% 8.9% 5.2% 6.5% 7.7% 8.8% Mom & baby 8% 4% 10% 8% 8% 4% Fast delivery 7.4% 6.0% 8.6% 10.0% 7.6% 5.8% Toys 5% 5% 5% 5% 5% 9% Free delivery 13.0% 6.8% 14.8% 10.6% 18.4% 3.2% Groceries 17% 9% 19% 10% 11% 11% Easy return policy 6.5% 5.7% 2.9% 5.4% 4.5% 5.3% Lifestyle and Hobby 8% 10% 7% 7% 8% 10% Easy navigation on site 4.6% 7.0% 3.3% 3.8% 3.5% 9.3% Home & Living 7% 8% 10% 9% 8% 9% More payment options 9.3% 8.9% 11.0% 13.4% 5.3% 8.4% Sports 4% 6% 3% 4% 3% 4% Better mobile app 4.6% 9.6% 5.7% 4.4% 6.8% 9.4% Travel 5% 3% 3% 2% 2% 3% Loyalty program 0.0% 0.3% 0.0% 0.0% 0.1% 0.0% Automotive 0% 7% 2% 3% 1% 4% More promo 0.9% 0.0% 0.0% 0.0% 0.2% 0.9% Others 0% 1% 0% 1% 1% 2% More secure 0.0% 0.3% 0.0% 0.1% 0.0% 0.2% Figure 4: Reasons why shoppers prefer certain online platforms over others; ecommerceIQ E-Marketplace Indonesia Survey HAYDEN CAPITAL Fred Liu, CFA | [email protected] Figure 7: The most popular product categories on ecommerce platforms in Indonesia; ecommercelQ E-Marketplace Indonesia Survey 14
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