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February 15, 2024
Our retailer network includes one of Southeast Asia’s (SEA) top e-commerce marketplaces, Lazada. Lazada’s thriving ecosystem links shoppers to an unparalleled selection of over 1 million brands and sellers, and Lazada expects to serve around 300 million customers by 2030.
Lazada officially launched in 2012 with the target of establishing a business model similar to Amazon’s e-commerce marketplace, whilst taking advantage of Amazon’s weak presence in SEA. In April 2016 e-commerce giant Alibaba took over Lazada and expanded its presence in the SEA e-commerce market by diversifying its offerings by bringing together specialty stores and becoming a one-stop shop of integrated channels. The strategy attracted the masses in the SEA region of both consumers and sellers. By 2019, Lazada commanded 46% of the SEA e-commerce market share and had become the first mega e-commerce platform to reach six major SEA countries: Singapore, Malaysia, Philippines, Thailand, Vietnam, and Indonesia.
The SEA region is fast becoming the next arena for business competition as the Asian market grows around 20% per year on average. In a recent announcement, Lazada’s CEO stated that e-commerce user penetration is expected to exceed 63% in SEA by 2025. This will result in 413 million e-commerce users as the sector sees more dynamic shopping online.
Introducing innovations and driving transformation is not unknown to Lazada. Lazada has been pioneering the growth of e-commerce in SEA for the last decade by remaining steadfast in its pursuit of constant end-to-end improvement and the development of new strategies and tools. Amongst Lazada’s countless innovations are the development of a marketplace model that connects sellers and customers, and the launch of the LazMall platform, which guarantees the 100% authenticity of items from more than 10,000 local and international brands and sellers.
Lazada seeks to harness both existing and emerging technologies to redefine the retail experience. Lazada’s same-day delivery service gives them a competitive advantage as they promise to hand over orders to customers within 24 hours. Lazada has also developed innovations in logistics, by building an efficient and effective network from scratch, including the use of a sorting centre that automatically dispatches tons of items every day around the country.
Lazada successfully penetrating the SEA e-commerce market is greatly due to the development of SEA’s most secure payments and financial services infrastructure. Lazada provides trusted and seamless transactions for shoppers and an in-platform secure payment solution for all transactions. Lazada’s cash-on-delivery payment (COD) solution gives the company access to millions of new SEA buyers who wouldn’t otherwise be able to take advantage of its services. SEA countries such as Indonesia and Philippines lack local banking infrastructure due to many consumers not having a bank account. Therefore Lazada’s COD payment solution brings confidence in SEA buyers as they do not have to prepay for products, which could result in unforeseen issues.
According to research identified in Lazada’s latest Digital Commerce Confidence Index, digital commerce is proven to be a resilient driver of retail growth. A consumer study by Lazada also revealed that 73% of SEA consumers identify online shopping as integral to everyday life. As consumer shopping behaviours shift towards e-commerce, it is crucial for brands to stay competitive and to develop a greater understanding of digital shoppers’ preferences and category trends.
Here at Flixmedia, INpages provides an effective solution to help brands sell more with Lazada. Using our content syndication platform, brands’ INpage content is published on Lazada product pages using a custom template adhering to the specific requirements of their platform. Using rich media content, shoppers are provided with an enhanced shopper experience across all platforms (desktop and mobile), including the Lazada app, during the purchase decision period. The outcome? Increased Add-to-Cart rates, turning browsers into buyers.
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