10-year itch: Tokopedia bets on digital payments to take on Shopee

Tokopedia is trailing behind younger rival Shopee, which ended 2019 with 30% more daily active users. Indonesia’s e-commerce pioneer is now diversifying interest by securing a major stake in digital financial services platform Ovo

Shopee had 15 million daily active users by the end of 2019, compared with Tokopedia’s 10 million

Indonesian merchants are also reporting higher sales on Shopee, especially in categories like fashion and baby products

High marketing spend and a free shipping policy has helped Shopee, but Tokopedia needs to take the threat seriously

Tokopedia acquired a big stake in payments company Ovo and has to defend that turf against Shopee’s ambitious SeaMoney plans

It was unusual, even by the standards of Indonesian tech giants’ increasingly cheeky advertisement campaigns. Shopee and Tokopedia, two of the largest e-commerce companies in the country, were locking horns in a public display of one-upmanship via billboards and digital ads.

At the peak of the spat in January, Shopee (the e-commerce branch of New York Stock Exchange-listed internet company Sea) spoofed one of Tokopedia’s key visuals—a billboard featuring its brand ambassador, the Korean boy band BTS. Shopee’s ad showed an Indonesian singer mimicking the poses and outfits of the famous pop singers.

Bottom: Tokopedia's ad with K-Pop band BTS; top: Shopee's spoof of Tokopedia's ad

All throughout 2019, there were other, smaller affronts, with Shopee mocking or mimicking Tokopedia’s brand messages.

AUTHOR

Nadine Freischlad

Nadine is based in Indonesia. She covers Southeast Asia's super apps, the changing nature of work and employment, and other structural shifts happening as a result of digital disruption.

View Full Profile

I look forward fervently to my daily long reads from The Ken featuring Yangon and Jakarta, Bangkok and Kuala Lumpur, Manila and Saigon.

The Ken has changed the way insiders and outsiders alike learn about the Indian tech ecosystem. Considering the posse they gathered to cover Southeast Asia, I would expect nothing less from them for the new region - and this happens not a moment too soon.

Dmitry Levit / Founder and General Partner / Cento Ventures

It is this kind of reporting that will contribute to the maturation and vibrancy of the Southeast Asia tech ecosystem.

A lot of the tech news in our region is headline-driven. This makes it a race to break news and make things sound spicy, which in turn generates a lot of noise. I find The Ken's approach of releasing one well-researched article a day both relevant and refreshing.

Paul Santos / Managing Partner / Wavemaker Partners