This is coupled with increasing GMV to USD 5,645.9 million by Q4 2019. Digital financial services Under this business segment, services and products are available in various markets across Southeast Asia under AirPay, ShopeePay, Shopee PayLater, and other related brands. Products/Services Available in Airpay Thailand, Vietnam, Indonesia, Taiwan ShopeePay Singapore, Malaysia, Indonesia, Philippines ShopeePayLater Indonesia Figure 4.3: Operating markets by products/services As seen from Figure 4.3, the market share of Sea’s digital financial services is relatively lower as it is onlylaunched in limited markets which reflects under-utilisation of its digital financial services amongst its large user base in the two other business segments.
BUS489 Strategy for Business GBA05 SEA Group Business Case 23 External Analysis I.Market Analysis Sea primarily operates in the South East Asia region. Drivers for growth in the region are attributed to powerful demographic and macroeconomic factors. This includes a growing population with an average growth rate of 1.2%, increasing wealth as seen by a rising of 6% GDP per capita on average per year. With one of the world’s largest millennial populations, the GSEA region carries the presence of a considerable proportion of digitally-savvy consumers which is a suitable target audience for Sea’s digital products.The central theme of Sea’s three business segments (Garena, Shopee and SeaMoney) is that they function online. This suggests significant potential and market opportunities to capitalise the burgeoning digital landscape. Based on the latest e-Conomy report published by Google, Temasek, Bain & Company, it revealed that the South East Asian digital economy is pegged to reach US$300 billion by 2025. Such positive outlook is contributed by widespread technology adoption and digital transformation in South East Asia - fuelled by rapid growth in internet access and smartphone penetration rates.Digital entertainment Garena operates in the digital entertainment industry. On a global scale, income from digital entertainment is steadily rising and has even accounted for more than half of the total revenue in the entertainment and media industry since 2019 (Refer to Figure 5). Valued at US$3.5 billion as of 2016, the Southeast Asia online game market is forecasted to grow at a compound annual growth rate (CAGR) of 19.6% to reach US$8.6 billion in 2021 (Newzoo and Niko Partners). As populations are increasingly capable of affording digital devices, there is an increasing trend of users directly tuning into online entertainment via mobile and PC internet. As such there has been an increased demand for mobile games as a complement to PC online games. Other drivers for growth in the industry include the global rise of consumer preference towards eSports. ESports is expected to grow to a global audience of 385.5 million in 2017 - up from 322.2 million in 2016 (Sea Limited, 2017).
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Revenue, Financial services, SEA Group Business Case