SHOPEE'S
E-COMMERCE MARKETING STRATEGY IN INTERNATIONAL BUSINESS
Mela Devita, Zuhrinal M Nawawi, Nuri Aslami
North Sumatra State Islamic
University, Indonesial
[email protected], [email protected],, [email protected]
ABSTRACT |
The lifestyle of modern society and economy
has been shaped by the advancement
and evolution of information technology. Shopee implements worldwide marketing strategies to achieve success
in foreign businesses, due to the
high number of internet users and the desire
to shop online. This study uses a descriptive approach and uses a qualitative strategy. Secondary data were collected through literature review found in various materials, including scientific journals and novels. The purpose of this
research is to find out
how Shopee's marketing approach has developed and grown in foreign markets. According to the findings
of this study, Shopee uses a combination of techniques, including a pull approach and a push strategy,
to increase consumer loyalty. Shopee has launched Shopee Streamer Academy, a new curriculum. Shopee's new program is a one of a kind
marketing public relations approach to influencing public perception, which benefits the company's sales. |
Keywords: International
Business, Marketing Public Relations Strategy, Shopee, ��Marketing
Strategy. |
*Correspondent
Author : Mela Devita
Email : [email protected]
INTRODUCTION
People's lifestyles are gradually changing along
with the growth and development of technology in the rapidly developing era of
globalization. Computers which currently play an important role in the
dissemination of information and will continue to increase with the internet is
one of the technical advances. The Internet can provide information to the
entire population regardless of time and location. Human lifestyles are becoming
increasingly instant and easy in this day and age as a
result of high mobility in daily activities. The ability to shop online is one
of the benefits that people get. Buying and selling online has become a new
trend in society since the birth of the internet. As a result of the changing
world, the fourth industrial revolution makes it easier for humans to access
various types of information through the internet. The Internet and advances in
information technology can help shape the nature of service delivery and impact
service delivery change processes.
According to research from We Are Social and HootSuite, the world population is estimated to be around
7.83 billion people in January 2021, with 4.66 billion people using the
internet (59.5 percent). In Indonesia, 25% of internet users are active in
buying and selling goods in E-commerce using a computer or laptop, while the
remaining 80% use mobile phones to buy and sell products in E-commerce.
E-commerce refers to the sale or purchase of goods or services using an
internet network that is specifically equipped to receive orders. Purchases of
goods or services can be made online, but payment for these purchases does not
have to be made that way.
The rapid and growing progress of the E-Commerce
industry has prompted the emergence of many new E-Commerce businesses that
offer a variety of attractive benefits and conveniences, resulting in increased
competition among significant E-Commerce businesses to gain top rankings in
various categories. Companies must
have their own identity to improve consumer purchasing decisions when
competing. Advertising on television or social media, for example, has a very
short time span of minutes or even seconds, so the company slogan becomes very
significant. The tagline must be innovative and unique in
order to attract the attention of consumers and persuade them to buy the
product being promoted.
Many people, both inside and outside Indonesia,
have turned to online shopping to buy the things they want. Shopee has also
enlivened this business thanks to the continuous growth of E-Commerce. Since
2015, SEA Group has officially managed Shopee, an online retail platform.
Shopee concentrates its efforts on the mobile platform, making it easy for
users to search, shop and sell right from their phone.
Shopee soon expanded its business by launching
products in Indonesia, Thailand, Malaysia, Taiwan, Vietnam, and the
Philippines, among other countries. Shopee was named the best E-Commerce site
in Southeast Asia to attract the most traffic. For that, Shopee relies on the
company's marketing strategy. In 2019, Shopee attracted around 2.1 billion web
visitors.
The process of planning, pricing, and advertising a
company's goods or services to customers for a profit is known as international
marketing. In conducting research, forecasting, and designing strategies to
sell goods in target country markets, international marketing plays an
important role. International strategy is a company's international business
strategy that implements business strategies in domestic and foreign markets by
analyzing opportunities that local competitors do not have.
Shopee uses various international strategies, one
of which is public relations marketing as a business development approach.
Public relations marketing is a technique for disseminating information,
providing education, increasing trust and confidence, and gaining sympathy and
support from the general public (John Wiley & Sons, Inc. Hermawan, 2012). To
achieve the desired goal, three public relations marketing strategies (Three
Ways Strategy) can be used, namely push strategy, pull strategy, and pass
strategy (Ruslan, 2010).
Combining marketing and public relations with advertising can help you get more
of the results you want, and it's also great for increasing customer brand
awareness and knowledge.
METHOD
This study uses a descriptive approach and uses a qualitative strategy.
This research is based on secondary data collection, with literature study as a
data collection technique. Library research is a data collection technique that
involves collecting data and information from various sources, such as
scientific journals, books, photos, and other electronic media, to support
certain claims made in a study (Sugiyono, 2015). To show in detail the marketing strategy
or a broad or real picture of the evolution of the marketing strategy carried
out by Shopee E-Commerce, any information obtained will be sorted by sentence
in the analysis of this research.
RESULTS AND DISCUSSION
To
grow its business worldwide, Shopee has implemented many strategic marketing
initiatives, including Shopee guarantee, free shipping, lowest price guarantee,
and Big Mobile Shopping Day campaign. Shopee uses various international
strategies, one of which is public relations marketing as a business
development approach. Public relations marketing is a technique for
disseminating information, providing education, increasing trust and
confidence, and gaining sympathy and support from the general public (John Wiley & Sons, Inc. Hermawan, 2012). To achieve the
desired goal, three public relations marketing strategies (Three Ways Strategy)
can be used, namely push strategy, pull strategy, and pass strategy (Ruslan, 2010). �A push strategy is a marketing approach used
to showcase a brand's product or service in front of people. A pull strategy,
on the other hand, focuses on using consumer advertising to build brand loyalty
and keep customers coming back. While the pass strategy is defined as a
strategy that focuses on the company's participation in community activities
that involve selecting information to have an impact or build a positive public
perception of the company. Combining marketing and public relations with
advertising can help you get more of the results you want, and it's also great
for increasing customer brand awareness and knowledge.
Shopee's
newest feature, Shopee Live, debuted in 2016. Through this live broadcast,
shoppers can more easily ask questions about products provided by manufacturers,
and they will be answered quickly and directly on the spot. Furthermore, users
who are interested in purchasing products from this business can use the
shopping cart function during the live broadcast to purchase related products.
Not only that, but they can also be accessed after the live broadcast through
their own account and replayed after the live broadcast ends.
Through
the Shopee Streamer Academy program, Shopee also applies a combination of pull
and pass strategies in the application of marketing public relations. The pull
approach is used here by emphasizing the use of advertising and promotional
activities to consumers in order to increase consumer demand and build product
loyalty (Ruslan, 2010). Shopee Streamer is
one of the features of the Shopee program, and it's a great way to make money
and grow your business. Shopee, an e-commerce platform, promotes customers to
purchase products by arousing their interest through an attractive display of
materials made by steamers. Despite the fact that
Shopee Streamer Academy is not a community, this interpretation is correct.
Steamers are responsible for connecting the company with its customers.
Furthermore, steamers as a third party assist
companies in increasing public awareness, especially for products related to
content discussed and purchased through the Shopee application.
Shopee
also examines the behavior, mindset, and desires of the target community. One
of them is Shopee's new advertising program, which features K-Pop idols as
performers or commercials. Shopee uses three approaches based on Thomas L.
Harris' A to Z marketing public relations concept: competition, demonstration,
and product placement (Harris, 1993). A
competition is a contest in which a group of people compete for a prize. Public
relations using the competition method in conducting promotions obtain various benefits,
including increasing public interest by giving prizes or awards to contestants
who win the competition. In order to enliven the broadcast of KCON: TACT 2020
Summer on Shopee Live, Shopee launched the KPOP Stream Competition on June
20-26 2020. KCON: TACT 2020 is a Korean pop music
festival which is often referred to as Korean Pop or K-Pop. ,
which was broadcast online through a live streaming platform and featured a
number of well-known Korean musicians, including Black Pink, GFRIEND, Chungha, ITZY, Monsta X, and
others. To excite K-Pop fans in Indonesia, Shopee sponsored a live broadcast
competition on Shopee Live with the topic of Korean culture.
The
second strategy method is demo, which Shopee uses by allowing streamers to
present product usage from the customer's perspective. Shopee uses product
placement tactics as a last resort. Product placement, according to Karrh, is the process of introducing products from a
particular company into the mass media platform using audio, audiovisual, or
visual media (Karrh, 1998). The first component
of product placement is the placement of a screen to display the brand in plain
view, such as an advertising banner on a street. The dialogue describing the
brand is the location of the second script. The third element is plot
placement, which helps develop the storyline. When streamers create product
review content, these three principles are used.
Shopee
also comes with new ideas such as discounts, free shipping throughout
Indonesia, and other interesting offers. Of course, people will be interested
in buying goods from Shopee E-Commerce. Shopee has also narrowed the gap
between itself and other E-Commerce platforms that have been around for a long
time in Indonesia. From 10.10 mobile shopping campaigns onwards. However, this
shopping campaign is usually carried out every month according to the results
of the previous month, and has been proven to increase
consumers' purchasing power. The marketing strategy that has been designed in
such a way must be accompanied by a service strategy for prospective buyers,
because service quality is a determining factor for consumer happiness.
Everything
Shopee does as part of its overseas business activities is based on an
international marketing strategy. Foreign marketing tactics are intended to
improve international marketing performance. The worldwide marketing strategy
has a significant impact on a company's reputation and brand awareness. An
effective marketing plan will result in marketing benefits and increased trade
as it attracts many new customers, enables Shopee to conduct international
trade exchanges and serves as a link between the domestic and global economies.
CONCLUSION
The advancement of life combined with the availability of
information and communication technology, as well as the use of the internet,
has resulted in the creation of a multinational business. Consumers play
an important role in shaping all commercial and manufacturing operations in the
modern economy, so businesses that emerge in this era must be able to match
their desires. Every business is involved in consumer marketing to
determine what the market needs. International marketing is the practice
of applying marketing principles, methodologies and
tactics to target foreign markets. The company's ability to understand the
wants and needs of key markets and distribute its products and services in an
international commercial setting is the key to success in international
marketing. Companies must research the habits, mindsets
and tastes of foreign consumers in order to compete in the international
market. Shopee, as one of the E-Commerce companies that has successfully
penetrated the Asian market, has used its public relations marketing plan to
adopt various approaches to international marketing strategies. To
increase consumer loyalty, Shopee uses a combination of pull and pass
strategies. Furthermore, with three steps implemented, the Shopee Streamer
Academy program becomes an international marketing tool, including competitions
(organizers of the K-Pop Stream Competition), demonstrations (presenting
material such as product reviews), and product placement (packaging content in
livestreams). The company's strategic methods include providing easy and
effective access in ordering and purchasing products for consumers, especially
Shopee application users
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Brand placement: A review. Journal of Current Issues & Research in
Advertising, 20(2), 31�49.
Ruslan, R. (2010). Management
of Public Relations and Communication Media. Jakarta: RajaGrafindo Persada.
Sugiyono. (2015). Qualitative,
Quantitative, and R&D Research Methods. Bandung: Alphabeta.