SINGAPORE: The Southeast Asian e-commerce market, although rapidly expanding, still lags behind giants like the United States and China, presenting a wealth of untapped potential, according to Forrest Li, the billionaire founder of e-commerce platform Shopee. Speaking at a fireside chat during the Singapore FinTech Festival on November 7, Li emphasized that the region's online shopping activity is still on the 'low end.'

'The way to foster e-commerce growth is by making products cheaper and more accessible,' Li stated, highlighting Shopee’s mission as they cater to hundreds of millions of customers daily, with hopes of exceeding a billion. As the owner of Garena, a major gaming platform, he outlined his determination to leverage emerging technologies like artificial intelligence and blockchain to enhance customer experience.

Li noted the ongoing challenges in the tech sector, which has faced a backlash in recent years, marked by significant market crashes and a drop in funding due to the post-pandemic downturn. In 2022, Li experienced a staggering 80% drop in his net worth, which amounted to a loss of roughly $22 billion, during a market downturn that affected many of the world's wealthiest individuals.

Nevertheless, the landscape is beginning to shift positively for Sea Group, with Li reporting a return to profitability in the second quarter of 2023 after earlier losses.

SEA’s Pursuit of Fintech Dominance

Li's vision does not stop at e-commerce; he sees vast growth opportunities in the fintech sector, which Sea Group entered in 2014 through e-wallet services in Vietnam and Thailand. The firm has since expanded into consumer credit and loans for small and medium-sized enterprises (SMEs), effectively utilizing the Shopee ecosystem to support underserved markets.

In countries like Indonesia, where access to credit is comparatively limited, Sea is making significant inroads by providing small loans, often averaging just a few hundred dollars. 'While it's a modest amount, it can significantly impact lives,' Li explained. He believes that credit services can offer critical financial relief to many individuals and families.

Li also pointed out the disparity in consumer needs between markets. In Singapore, for instance, where the company operates a digital bank, there is a strong demand for diverse investment products. 'Many Singaporeans are eager to invest but find themselves lacking options. Our recent investment product, requiring a minimum investment of just $1 (US$0.76), is designed to fill this gap,' he revealed.

A Focus on Technology and Accessibility

At the core of Li’s strategy is a commitment to utilizing technology to promote inclusivity. 'Regardless of the industry we’re in, our focus is always on how technology can enhance the quality and convenience of products,' he mentioned. Despite rapid technological advancements, many individuals still struggle to benefit. To counter this, Sea aims to make their technology accessible to all.

An illustrative example Li gave was Garena's highly popular game, Free Fire, which can be played on low-end mobile devices. 'Our goal is to ensure that more people can engage with our games and enjoy the experience,' he said, underscoring the spirit of inclusivity that drives Shopee as well.

Li concluded by emphasizing Shopee's ongoing efforts to lower prices and delivery costs to broaden access to e-commerce, even in rural regions. 'By reducing delivery costs while maintaining quality and speed, we can ensure that even those in remote areas reap the benefits of e-commerce,' he affirmed, highlighting his belief in a future where technology and availability empower consumers across Southeast Asia.

In summary, Forrest Li's insights shine a spotlight on the evolving landscape of Southeast Asia's e-commerce and fintech sectors, revealing both the challenges and immense opportunities that lie ahead as the region continues its digital transformation.