Tony Hou: Yes, — for the long-term GMV growth, generally, we believe that we can outgrow the market given our competitive advantage. The — as we see from the Q3, we still see quite a lot of new users being acquired. We also see more and less active users become more active. And we also see that the existing users increasing their share on our platform, both shifting from other platform, of course, but also shifting from their offline behaviors. In the opening, I think Forrest mentioned that the e-commerce penetration in our market is still low. We are still far away from the market saturation. So we believe there is still a sizable runway to go in terms of the long-term GMV growth. Compared to many developed markets on e-commerce, I think in South Asia, we are still underdeveloped.
In our Latin American market, for example, in Brazil. I think the runway is even further. If you look at the Brazil, e-commerce order is still a lot less penetrated compared to our South Asia market. Regarding the question on the long-term profitabilities, there’s no particular change to our purposes. I think you mentioned live stream. If you look at live stream in particular, we believe this is a probability over time. I think we have already spent the economics improved a lot in the past few months in — as shared in the last remark. It’s true that there is a higher content creation cost associated with these businesses. However, there is another aspect to this as well. Number one, the product categories that does well on live stream tend to be high-margin categories.
Typically, the room of the margin are still a bit better for those categories. So we have better monetization capabilities from the platform. That’s one. Second one is, typically, live stream is also a good tool for sellers to drive more engagement with their buyers or potential buyers, increasing conversions and also drive more sales during — for particular products or testing a new product or for the leftover stock, etcetera. So it’s — generally, it’s a good channel for the seller to invest themselves to market that businesses. I think all-in-all, if you put everything together, we do believe that the e-commerce EBITDA potential that we shared before will stay. For the sales and marketing spend, in terms of the time line inflation point and stickiness and retention, there are many aspects we look at the spend we have.
And of course, we look at the retention, we look at the order growth, we look at the — when we look at the new user acquisition, we look at the CLPs in terms of the each user brings. There are many aspects that we’re looking at. Regarding the time line, as shared in the previous answers, we assess — we look at the long-term investment on both what’s the return investment in general, but also on a particular opportunity that we would like to invest on. And we evaluate both the growth and profitability and market share in totality, rather than looking at one aspect of it.
Yanjun Wang: Yes. I also want to add to what Chris mentioned is that the — as we shared on the call earlier, when we look at the current cohort of new buyers, we actually see very encouraging signs, the inequality of the buyers. And overall, we see better buyer retention and higher order frequency on our platform during this period. We have demonstrated a very strong track record previously with — during the past few years as we scale the Shopee platform. When we do tend to profitability, we were able to have a very healthy profit level for our platform, while maintaining the size of the platform and maintaining the user base. That shows that we have built very clear and strong competitive edge and capability in managing user growth and spending efficiency.
Forrest Li: Yes. Just to add a little color on this. So typically, when we look at the users, each user will assess on each order on the profitabilities of the order. And also we look at each users on the totality of the profitability of the users. And we look at not only now, their current behavior, but we also look at the past behavior. We also have a model to predict the future behaviors. So at the order level or the user level, we have the capability to be able to predict the potential margins we can make from this particular user, which user to drop, which used to take, and all those will come together when we try to monetize our platform. And this is why, as Yanjun mentioned, last year when we tried to drive the platform profitability can do it very quickly.
We know exactly what to pull the lever. It also helps us when we try to grow the platform again, which kind of user we want to bring to the platforms from the acquisition — from the early acquisition to the early adoption, which one we want to drive them to early adoption stage to the mature user stage and to the later stage. And all those were very detailed work that we put into the platform to make sure we manage our subsidies, manage our user acquisition, manage our CINs, all these things very carefully to maximize our efficiency of spending.
