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Hi readers,
Imitating features is indeed a common tactic in the tech industry, especially when competing with dominant players. Case in point: Instagram. The social media app has adopted several features from its rivals, such as Stories (previously popularized by Snapchat), and then Reels, which resembles short-form videos on TikTok.
Short videos could be considered one of the keys to TikTok’s current popularity. It’s easy to lose track of time scrolling through videos for entertainment. Live shopping on TikTok Shop, too, has fueled the social media app’s rapid growth.
Although Shopee and Lazada have long been involved in live commerce, this format didn’t really take off until TikTok Shop emerged. This then compelled the ecommerce incumbents to adopt diverse strategies to drive sales, including infusing their apps with social media elements similar to TikTok’s.
Shopee has been aggressively promoting its livestreaming and short-form video features, offering special discounts for purchases through these channels. Its rival, Lazada, also has similar features, albeit not as aggressively marketed.
Therefore, it’s interesting to observe the future landscape of ecommerce, particularly the competition between social media platforms with ecommerce capabilities – like TikTok – and ecommerce platforms with social capabilities – like Shopee and Lazada.
Time will tell whether Shopee’s and Lazada’s moves can fend off competition from TikTok Shop, or whether the latter will eventually still gain a better advantage in that sector.
— Jofie Yordan, journalist at Tech in Asia
Top stories this week
Image credit: Timmy Loen
1️. Shopee ramps up short-video efforts, but can it fend off TikTok Shop?
Shopee is offering deep discounts on its short videos channel to draw in younger users, creators, and new sellers. It’s already seeing some results.
2. Learning from the mistakes of the West’s ‘unicorn factory’
Failing to scrutinize startups’ business fundamentals has sparked a crisis for VCs in the West. Those in emerging markets would do well to avoid this.
3. Ninja Van lays off about 10% of regional tech team
The Singapore-based logistics company’s revenue declined 7% year on year in FY 2023, mainly due to an almost 20% drop in parcels handled.
4. GoTo Group’s financial health in 7 charts
The charts in this article, which are updated every quarter, present a snapshot of how the Indonesian giant is doing.
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