Shopee grows in Brazil and could threaten Magalu and Mercado Livre

A report from Reuters released this Monday (30) talks about a success story in Brazil’s e-commerce during the pandemic. However, the traditional British agency is not talking about Magazine Luiza, which has made several acquisitions in recent months. The news agency highlighted the impressive growth of Shopee, which has become the most downloaded commerce app in the country and is expected to generate a third of the value of Magalu’s sales.

The secret of the success of the Singapore company, which is part of the Sea Ltd group, is its approach to promoting its low-cost products: a miniapp, which offers games and coupons to winning users, downloaded and run within the store’s largest app. . Last week (25), the platform opened a space dedicated to large popular brands in Brazil, taking advantage of the debut of a great promotion released by actor Jackie Chan.

The strategy allows the holding to combine online purchases with the popularization of games from its mobile title distributor Garena, the creator of Free Fire, the most downloaded game in Brazil for eight consecutive quarters. Shopee’s advance, in just two years, reveals the occupation of a space that has always been dominated by regional companies, such as Magalu and the Argentinean Mercado Livre.

Shopee Brazil’s strategy

Source: Shopee Blog/DisclosureSource: Shopee Blog/DisclosureSource: Shopee Blog

Sea’s arrival in Brazil is part of a global strategy for Latin America, which already includes other countries such as Chile, Colombia and Mexico, although in these places there is still no team of its own, as is the case here. Itaú Group analysts estimate that the value of goods sold by Shopee last year exceeded R$ 12 billion.

To achieve greater productivity gains, analysts at Goldman Sachs told the Reuters that Shopee could increase the sale value of its items, currently in the range of R$ 140, repeating a successful strategy in Singapore, Indonesia, Malaysia and Thailand. Jianggan Li of Singaporean investor Momentum Works bets: “I wouldn’t be surprised if they took first place. [no Brasil]”.