In The Checkout this week, we look at Line Manâs financials for 2022 and analyze Lazadaâs new strategy in Indonesia. [Read from your browser]( The Checkout ð --------------------------------------------------------------- Welcome to The Checkout! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in ecommerce. You can find past issues [here]( or [sign up here]( to receive future newsletters. Also, If youâre not a subscriber, get access by [registering here](. IN FOCUS In today's newsletter, we spotlight: - [Line Manâs financial results for 2022](
- Lazadaâs moves following TikTok Shopâs closure in Indonesia
- [Tada parent firm MVL nearing its profitability milestone]( --------------------------------------------------------------- Hello {NAME} I use food delivery apps almost every day. However, I don't have a single go-to app - usually, I compare prices before making a choice. In Thailand, GrabFood seems to be the preferred option for most consumers, with a 51% market share in 2022, according to research firm Momentum Works. Nevertheless, local player Line Man Wongnai refuses to be left behind. Despite having a market share of only 24% in 2022, the firm managed to grow its revenue to US$321 million that year, up by 51.5% from 2021. Its EBIT losses also improved slightly to US$108.4 million last year. In this week's Big Story, my colleague Miguel dissects Line Man's financial results for 2022, including its revenue sources, expenses, and cash flow. Meanwhile, I analyze Lazada's strategy to waive all fees for live sales and new sellers in Indonesia after the closure of TikTok Shop in the country. Can Lazada leverage this momentum to bounce back? More details below. -- Jofie
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--------------------------------------------------------------- THE BIG STORY [Line Man posts 52% increase in 2022 revenue, EBIT losses improve]( Line Man's recent acquisitions of Rabbit Line Pay and FoodStory may diversify its revenue mix beyond food delivery in the coming years.
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THE HOT TAKE Lazada seizes opportunity after TikTok Shop's closure in Indonesia Hereâs what happened: - Lazada has [waived all fees]( for sales made via livestreaming in Indonesia.
- New sellers wonât have to pay commission for three months. Theyâll also enjoy free shipping for two months and receive 300,000 rupiah (US$19.19) worth of credit after signing up.
- This comes after the closure of TikTok Shop in the country following new regulations on social commerce. Hereâs our take:
The closure of TikTok Shop in Indonesia has opened up opportunities for other ecommerce platforms to double down on their live commerce services. Shopee had [started]( focusing on this feature before the closure and Lazada looks ready to join the party. Lazada's strategy to temporarily waive fees for live sales and provide incentives for new sign-ups are the right steps to attract TikTok Shop sellers who might [have doubts]( about moving to a new platform. Previously, many sellers chose TikTok Shop because it was considered more cost-effective. Merchants on the platform didn't have to spend much on advertising since they could generate organic traffic from short-video content and live sessions. Lazada has a shopper profile that is fairly similar to TikTok Shop, which may make it an attractive option for vendors. Simon Torring, co-founder of insights firm Cube Asia, [pointed out]( that Lazada's Indonesian shoppers have an average age of 34, with 50% of them being women. Meanwhile, TikTok Shopâs buyers in the country had an average age of 33, of whom 58% were women. Shopee, whose Indonesian users have an even more similar profile to those of TikTok Shopâs, does not seem to be offering similar promotions for now. Meanwhile, Tokopedia does not appear to be prioritizing its live shopping feature. The market left by TikTok Shop is tempting. In the first six months of 2023, its gross merchandise value (GMV) in Indonesia reached US$2.5 billion - equivalent to the platformâs GMV for the entire 2022, according to [Cube Asia](. The key to TikTok Shop's growth lay in the company's commitment to offering substantial subsidies. However, this strategy became a double-edged sword as the Indonesian government accused the platform of engaging in [predatory pricing practices](. Lazada and Shopee need to exercise caution when providing similar incentives. Further, TikTok Shop may be down but it's not out. It seems to be making a comeback as a stand-alone app soon and its sellers are expected to try their luck once again on the platform.
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NEWS YOU SHOULD KNOW Also check out Tech in Asiaâs coverage of the ecommerce scene [here](. 1ï¸â£Â [A day after ban, TikTok Shopâs Indonesia sellers are staying put - for now]( With new regulations banning in-platform transactions on social media apps, live sellers on TikTok have resorted to sharing links to their storefronts on other marketplaces like Shopee and Tokopedia. 2ï¸â£Â [Ula cuts jobs, exits FMCG distribution for âlong-term economic sustainabilityâ]( The Indonesia-based B2B ecommerce firm said it will redirect efforts to ventures with âhigher margins and greater capital efficiency.â 3ï¸â£Â [GudangAdaâs revenue soared 10x in 2022 but profit remains elusive]( Its loss for the year stood at US$33 million, up from US$20 million in 2021. 4ï¸â£Â [Gobi Partners backs Malaysiaâs Ejen2u to bolster reseller management platform]( The Malaysian firm has served more than 340,000 resellers across the country. 5ï¸â£Â [Indiaâs third-party logistics shipments may soar 8x by 2030: report]( The volume of shipments from players like Meesho is predicted to reach up to 17 billion by 2030, according to a Redseer report.
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 1ï¸â£Â [Tada parent firm MVL posts over 300% jump in revenue, moves closer to profitability]( The South Korean blockchain startup narrowed its annual loss by 45% in 2022, while revenue from its mobility and delivery services tripled.
 --------------------------------------------------------------- Thatâs it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your âedit profileâ page and choosing that option in our preference center. See you soon! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails?
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