Sea Limited (NYSE:SE) Q4 2023 Earnings Call Transcript

I think the third one is to be able to identify the right skills, right sellers, through our traffic allocation algorithms and policies, of course. It’s about how can we make sure the sellers with the good performance and with the good price competitiveness will be presented – will be rewarded with the better traffic in our platform. So they can sell more, so they can reduce the price further, because the scale they achieved. And they can also reduce the operation cost to serve the customers. And then this will flow to a very positive direction and the win-win for everybody from the both buyer and seller perspective. I think that’s probably on the price competitive side. Just to add to that, I think another part of price competitiveness is to be able to offer differential services to different type of selling in the platform.

There are sellers who operate the full value chain. There are sellers who are very specialized in part value chain, for example, on the production side or the importing side. It’s very important for us as a marketplace platform to serve them well, to enable them to sell well our platform. So we can leverage on their strengths, rather than sort of, they need to be better on everything. And it makes it harder for many of the sellers to excel in the platform. But again, these are detailed operation methods that we have to work on to make sure that this works out smoothly. I think in terms of the long term probabilities, my feeling is that our market is not too different from the other major e-commerce platform that we have seen before. I think similar part of the level that is reasonable.

In some market maybe a bit better because our market position, because the nature of the retail margin in the market, some market might be a bit more competitive, but in general, we don’t see our market too different compared to the other market. And the market leader and the, as a market leader in the platform we will be able to achieve similar possibilities as a market leader in the other market.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ms. Minju Song for any closing remarks.

Minju Song: Thank you all for joining today’s call. We look forward to speaking to all of you again next quarter. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.