4.1.

Shopee’s Value Chain Analysis

Since its 2015 market entry, Shopee visioned to bolster Vietnam's value chain to align with
government e-commerce development policies. Shopee aims to foster a balanced playing field,
leveraging technology to help both users and businesses thrive in e-commerce. The company
collaborates directly with local payment and transportation partners to streamline deliveries and
diversify payment options, ultimately enhancing the online shopping experience. Furthermore,
Shopee works with Vietnamese businesses and manufacturers to fortify the domestic supply
chain and champion local products. (Lan Anh, 2024)

Inbound logistics
Shopee manages inbound logistics through a mix of in-house and
third-party services for transportation, warehousing, and inventory,
especially in complex markets. It partners with major logistics firms
while developing local capabilities to better serve users. For example, in
Vietnam, Shopee's digital transformation program supports over 1,000
garment producers by handling operations and promotion, boosting
supply capacity and product quality. (Sea Annual Report, 2024 & Lan
Anh, 2024).

Operations
“Service by Shopee” provides sellers with value-added services such as
inventory management, store operations, and fulfillment. Based on each
seller’s needs, Shopee may manage inventory and order fulfillment from
its own warehouses, operate storefronts on behalf of sellers, or purchase
products directly for resale. This service is currently available in
Shopee’s Southeast Asia and Taiwan markets. (Sea Annual Report,
2024).

Shopee is expanding its “Global Selling” program to help Vietnamese

businesses reach Southeast Asian and future markets. Over 350,000
local sellers have brought 15 million products, including 1,000
Vietnamese brands, to the ASEAN region. This supports the
government's dual strategy of boosting exports while strengthening
domestic distribution to elevate Vietnamese products globally and
locally. (Sea Sustainability Report, 2023 & Lan Anh, 2024).

Outbound logistics
Shopee stands out by adapting its supply chain to changing customer
needs through Shopee Express, its in-house logistics service. By
reducing reliance on third parties, Shopee can meet rising demand for
instant delivery, ensuring orders are packed and delivered within hours
and received within 24 hours. The company also continues to innovate
 its logistics operations. (SPX Vietnam, 2025)

Shopee supports sellers through experienced local teams that provide

fast, market-specific assistance and help with business tools. The
platform integrates logistics and payment partners to offer a seamless
one-stop solution, including fulfillment and value-added services. (Sea
Annual Report, 2024). Over nine years, Shopee has partnered with firms
like Vietnam Post, Viettel Post, Ahamove, TPBank, and VPBank to
enhance delivery, payment options, and user experience—key to serving
Vietnam’s 70+ million internet users, 75% of whom shop online. (Lan
Anh, 2024)

Marketing & Sales

Shopee’s platform features a live chat function for real-time buyer-seller
communication, improving transaction efficiency and shopping
experience. Buyers use it to ask product questions, while sellers confirm
payment and delivery. Shopee’s marketing focuses on "Double Date"
mega-sales (e.g., 9.9, 11.11), supported by ads, celebrity endorsements,
flash deals, livestreams, free shipping, Shopee Mall promotions, in-app
games, and social commerce tools like Shopee Live and Shopee Video.
(Sea Annual Report, 2024 & Sea Sustainability Report, 2023).

Services
Sea Ltd. offers a range of post-sale services to enhance user experience.
In Vietnam, Shopee provides secure payments, easy returns, loyalty
rewards, livestream shopping, food delivery, and affiliate programs,
supported by dedicated customer service teams. Moreover, Shopee
maintains dedicated and well-trained customer service teams to assist
users with platform issues, gather feedback for service improvement,
and efficiently handle complaints and suggestions through systematic
internal procedures. (Sea Annual Report, 2024).

Table 14. Shopee’s Value Chain Analysis

Shopee's supporting activities underpin its core value chain. Its robust infrastructure and strong
governance enable regional expansion and innovation. Human Resources (HRM) prioritizes
talent development and well-being through programs like the Graduate Development Program,
e-learning courses, and comprehensive benefits, recognizing top performers. Technology is vital
for efficient operations, user experience, and innovation, utilizing private data centers and cloud
services with local servers for scalable content delivery and real-time analytics. Finally,
procurement ensures reliable sourcing of essential digital infrastructure, payment gateways, and
cloud services, vital for seamless operations across all segments.
4.2. Competitor Analysis

Points of Parity (POP) and Points of Difference (POD) define a brand’s competitive
position—POP ensures basic expectations are met, while POD highlights what makes a brand
unique. Together, they help create a distinct and appealing brand image, offering competitive
advantage through unique value (Đặng, 2023). In Vietnam, Shopee stands out through strong
user engagement and entertainment-driven commerce, appealing to younger, price-sensitive
users in lower-tier cities. In contrast, TikTok Shopik leads in content-driven, trend-focused
commerce, appealing to urban Gen Z with creator-led, impulse-driven experiences.

Shopee TikTok Shop

Point of Product • Wide range of products (consumer goods, fashion, electronics,

parity FMCG, etc.)
• Focus on convenience & accessibility
• Frequent mega-sale campaigns

Point of Product • Offers a broad, structured • Focuses on viral,

difference product range with verified trend-based products,
sellers via Shopee Mall. especially in fashion and
• Features an integrated beauty.
ecosystem (Shopee Live, • Product discovery is driven
ShopeePay, ShopeeFood, by short videos and
SPayLater). livestreams from creators.
• Strong support for local • Appeals to Gen Z through
Vietnamese products and aesthetic, lifestyle-focused
SMEs. items and influencer
credibility.

Technology • Focus on mobile-first UX, • Seamlessly integrates

& Flatform fast check-out, ShopeePay, e-commerce via in-video
Shopee Live, and in-app shopping, livestream selling,
games. and creator-driven product
• Strong tech integration for placement.
gamification and social • Relies heavily on AI-based
commerce (Flash Sales, content algorithms to
Shopee Coins). personalize product exposure.
=> STRONG in user => EXCEPTIONAL in
engagement via gamified content-driven commerce
tech and social experience, and impulse buying,
especially for Gen Z and especially effective with Gen Z
Millennials. users through entertaining,
creator-led discovery.

Brand-Com • Brand: Mass-market, fun, Brand:

 accessible. High recognition Entertainment-commerce
among Gen Z and tier-2, tier-3 hybrid, trendy and social.
cities. • Communication: Creator
• Communication: Emphasizes driven content, viral trends,
emotional connection, aspirational storytelling.
community => VERY STRONG in
=> STRONG EMOTIONAL emotional and aspirational
attachment, but may LACK appeal, but LACKS trust and
premium perception. premium cues.

Price & • Heavy use of Flash Sales, • Flash deals via livestreams
Promotion free shipping vouchers, coin and trending videos.
rewards. • Relies on influencer
• Value-focused shoppers promotions rather than
respond well to gamified platform-wide subsidies.
deals. => Impulse buying incentives,
=> Strong price but less structured promo
competitiveness and system than Shopee
discount-driven appeal.
Table 15. Competitor Analysis of Shopee vs. TikTok Shop in Vietnamese market

4.3. Marketing Strategies

4.3.1. Shopee’s Current Marketing Strategies Review

Shopee is dedicated to enhancing the user experience by offering easy access to a wide variety of
global products. For consumers previously underserved by traditional retail, Shopee provides a
trusted, convenient platform where they can shop anytime, anywhere, and enjoy competitive
prices. (Sea Sustainability Report, 2023)

For Product, Shopee focuses on diversifying product categories by attracting sellers through
targeted engagement and product placement. It prioritizes high-potential, high-margin segments
like fashion, health and beauty, and home and living, while continuously expanding its offerings.
In Vietnam, Shopee serves as a key platform for SME digital transformation, featuring tools like
Shopee Guarantee, Shopee Live, and Shopee Video. Its ecosystem also includes ShopeeFood,
ShopeePay, and SPayLater.

For Price, Shopee in Vietnam employs highly competitive and accessible pricing. Shopee
frequently uses aggressive discounting, vouchers, and free shipping during major sales (e.g., 9.9,
11.11) to attract price-sensitive consumers. It also addresses high shipping costs by consolidating
overseas shipments for better fees, translating to competitive pricing for consumers. They also
provide a secure, flexible payment system through Shopee Guarantee and various options,
including mobile wallet, bank transfer, and cash on delivery, integrated with SeaMoney's
infrastructure.

For Distribution, Shopee’s distribution strategy in Vietnam is mobile-first, supported by

integrated logistics and local delivery partners. Its smart, automated warehouses streamline order
processing and enable 24/7 operations, with strategic locations ensuring faster delivery and
regional access. Shopee also serves as a key digital marketplace, connecting Vietnamese SMEs
with local and global consumers.

For Promotion, Shopee uses a mix of online and offline marketing to boost brand awareness and
attract users. Online efforts include ads, social media, and affiliate programs, with major
campaigns like the 3.3 and 11.11 sales driving engagement. Offline marketing is localized
through TV and display ads. In Vietnam, Shopee Live plays a key role, enabling sellers to
connect with customers via livestreams, product demos, and Q&As. This builds trust and boosts
sales through exclusive deals and influencer takeovers, while also offering valuable real-time
feedback and insights.

4.3.2. Shopee’s 3Cs Model Analysis

We propose the 3C Model (Customer – Competitor – Company) - avpowerful strategic tool that
helps businesses like Shopee Vietnam analyze their competitive position and identify actionable
insights.
 Figure 2. The 3Cs model analysis of Shopee Vietnam

Winning Where Shopee ●​ Gamified experience + tech efficiency: Shopee’s

zone outperforms fast check-out, ShopeePay, and in-app games are
competitors AND strong fits for Gen Z’s mobile-first,
aligns with customer engagement-driven behavior.
needs ●​ Social commerce infrastructure: Shopee Live,
Flash Sales, and Coins keep users entertained and
buying.
●​ Emotional + practical: Emotional appeal (via
Shopee Live and gamification) paired with a
functional, trusted platform.

Risky Where Shopee and ●​ Price promotions & discounts: Both Shopee and
zone competitors both do TikTok Shop aggressively push flash sales and
well, and vouchers.
 competition is high ●​ Livestream selling: A shared battlefield—TikTok
leads in entertainment; Shopee in trust.
●​ Creator collaborations: Both are improving
rapidly, making differentiation harder.

Dumb ●​ Over-gamification or too many push

zone Where Shopee over notifications: May overwhelm users, especially
invests in things older Millennials or serious shoppers.​
customers don’t
value much ●​ Shallow emotional messaging without creator
authenticity: If content feels too scripted or
artificial, it won’t compete with TikTok’s
creator-native culture.

Losing ●​ Aspirational storytelling & peer-driven

zone Where competitors shopping: TikTok excels at emotional
(such as TikTok engagement, using authentic creator content that
Shop) win by better resonates deeply.
meeting customer ●​ Social influence & trend adoption: TikTok users
needs feel part of something viral and communal.

What Shopee can do:

●​ Double down on WINNING ZONE: gamified commerce + trusted experience.

●​ Defend the RISKY ZONE: improve livestream tools, seller education, and
personalization.
●​ Avoid DUMB ZONE: reduce irrelevant gamification and push content.
●​ Close the gap in LOSING ZONE: build creator ecosystems, promote authentic stories,
and lean into aspirational commerce.

Table 16. 3Cs Recommended Zones of Shopee in Vietnamese market

4.4. Recommendations

Firstly, Shopee should deepen its localization strategies and build on its strong emotional appeal
among Gen Z and users in lower-tier cities by expanding localized and community-driven
campaigns. Promoting Vietnamese-made products through initiatives like “Hàng Việt”
livestreams and regional influencer-hosted content can foster a deeper sense of connection with
the platform. Additionally, storytelling campaigns—such as “Behind the Storefront”—can
highlight the journeys of Vietnamese sellers, reinforcing Shopee’s image as a supporter of local
entrepreneurship. Collaborations with local content creators and the expansion of Shopee Uni to
include regional ambassadors can further humanize the brand and build seller trust.
​
Besides, Shopee should build on its success in gamified commerce to engage Vietnam’s young,
mobile-first users year-round. Regular features like weekly voucher hunts or spin-the-wheel
games can keep users active beyond major sales. Incorporating Vietnamese cultural themes
during holidays like Tết or the Mid-Autumn Festival will increase local relevance.
User-generated content and influencer-led challenges can boost organic reach and strengthen
community ties. Additionally, integrating AI-driven features can personalize the experience and
better meet user needs.

Furthermore, to reach new users and expand its ecosystem, Shopee should pursue strategic
partnerships with brands and institutions that connect to users’ daily lives. Collaborating with
telecom providers to offer Shopee vouchers bundled with mobile data plans can increase app
downloads and ShopeePay usage. University campaigns—featuring contests, starter kits, or
internship programs—can help establish brand loyalty among students. Finally, working with
NGOs or government bodies on digital literacy and e-commerce training initiatives will position
Shopee as a champion of inclusive digital transformation, particularly in underserved
communities.