Lazada marketing strategy –
and market share 2013 – 2024
I’ve happened to exposure and interact with Lazada by various chance. While I was working for a leading digital product retail chain in a local market in SEA in 2011 – 2012 , Lazada had hunted three of my managers from SEO, Marketing, Product. Then after that I’ve been to Lazada offices in 5/6 countries in Southeast Asia and met all CEOs in each countries, mostly Lazada, sometimes Zalora and Foodpanda managing directors. I was even offered marketing positions in Lazada Indonesia and Lazada Thailand. After that I’ve interviewed some ex-CEO Lazada Indonesia, Thailand, Vietnam, Head of Marketing Southeast Asia… when they left Lazada to start their own startups.
These below content is curated and arranged from my experience.
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Effectiveness of Lazada’s marketing strategy in Southeast Asia
Although Lazada is widely criticized by some entrepreneurs because of uncreative strategies — implement viable business model in unreclaimed regions, it is undeniable that the milestones it made are really surprising and exciting.
Lazada uses AI-assisted search recommendations and AI-assisted translations. As a result, there is a robust strategy in place to offer a tailored purchasing experience. This method, from the seller’s perspective, highlights the goods to the most suited buyers. As a result, the conversion rate has risen to new heights.
Moreover, despite the fact that Lazada is dubbed as a notorious company, numerous venture capitalists continue investing rounds of funding for regional expansion, setting up more and more subsidiaries in Southeast Asia. With the total amount of funding it raised, US$ 647 million, needless to say, Lazada is one of the iconic unicorn in Southeast Asian startup community.
Hence, I believe it would be helpful to write an analysis report about Lazada based on the preliminary data which is available on the internet.
Source: SimilarWEb ; sorted by RTB-SEA
First of all, let’s get started with the performance of website across six countries — Thailand, Vietnam, Malaysia, Philippine, Singapore and Indonesia, respectively.
Bounce rate, referring to user behavior that click the leave button without taking a close look, in these countries is not as good as an E-Commerce leader shall be. The numbers in Vietnam, Philippine and Indonesia, most notably, exceed 50%.
In addition, Lazada’s performance, whichever the variable is, in Vietnam is relatively awful as compared to other five. Lazada should put more effort in Vietnam and considered performance in Vietnam as its corporate priority in terms of website optimization. Next, the rising concern would point to Philippine when combining the Total Visit, pi-chart , together with other three bar-chart variables. Even though Lazada’s website in Philippine takes roughly 36% of Total Visit, it does not generate anticipated results with respect to website acceptance.
Based on the aforementioned primary analyses , the poor and undesirable numbers manifest the huge improvement in Lazada’s website in Vietnam and Philippine. The loss in revenue is expected to be higher in these two countries if Lazada can not fix this urgent issue.
The best performance (see the bar-chart only) among all, on the other hand, happened in Malaysia with higher website acceptance. Malaysian, unlike other Southeast Asian, are more willing to spend time browsing and shopping, meaning Lazada’s localization strategies in Malaysia is doing relatively well.
Read full details here
Marketing Strategy of Lazada
Lazada has incorporated many different marketing strategies to reach its goal of getting customers to purchase its products. So let us go through the marketing strategies implemented by the company in the coming section.
Lazada focuses on acquiring a large new customer base and generating higher revenue who access the internet via different media like desktop, mobile phone. To achieve the above, the Lazada group adopted the flexible bid strategy of ‘Google AdWords’. These bid techniques present choices that permit organizations to computerize their expense per-click offers to accomplish objectives like ROI augmentation, change amplification, cost per procurement, and permeability.
Lazada utilized a procedure called target outclassing share, which empowered the online retailer to outclass its rivals on essential catchphrases. The objective outclassing share bid procedure permits organizations to raise or lower their offers up to a predefined most extreme expense per snap to help their advertisements “outclass” those of others. The group utilized this strategy to situate Lazada’s catchphrases in new classifications.
The procedure additionally advantageously offered the group the chance to offer against vital contenders, getting permeability and traffic among another arrangement of clients by focusing on their rivals’ catchphrases. This system empowered Lazada to determine the most extreme expense per click it was able to pay, accordingly controlling the expense important to outclass contenders’ areas.
Enhancing Customer Experience
In association with Amorepacific, Lazada dispatched its first actual store in Singapore in December 2019. It gives an experiential purchaser shopping excursion to test items at the actual store and the accommodation of buying through the Lazada application.
From January to March 2020, the Amore Store on Lazada saw a 5X expansion in deals. More than 80% of clients were new Amorepacific purchasers, and 20% of purchasers were new Lazada clients.
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Shopee vs Lazada: Who is more courteous and helpful to customers in the pandemic?
The marketing strategy of Lazada and Shopee in luring shoppers keep coming back to the site is a great to focus on customer service
The number of channels via which consumers may reach you without issue and the speed with which a solution can be supplied are both important factors in providing excellent customer service. Every day, Lazada provides 15 hours of chat help (6 a.m. to 9 p.m.). The Lazada staff is also ready to answer quickly on Twitter.
On weekdays and weekends, Shopee’s phone support window is open for 12 hours and 9 hours, respectively. Customers of Shopee can communicate with one another via chat at any time. Another alternative is to ask questions over Facebook Messenger, which has a very high response rate.
Shopee has a little advantage over Lazada in terms of responsiveness.
Shopee vs Lazada: How Shoppe Aided Sellers in Surviving the Pandemic
The Seller Support Package by Shopee, which covered 300,000 small and medium-sized businesses developing an online presence, was a major sigh of relief in the pandemic. Shopee’s Seller Education Hub was a well-received project for the following reasons: It allowed 6000 sellers to gain a solid understanding of the fundamentals.
Read more on Boxme.asia
Lazada marketing strategy 2017 – Alibaba’s eating up Lazada
Alibaba increases its stake in Lazada
The slowing Chinese economy and increased competition have prompted the Chinese e-commerce giant Alibaba (BABA) to pursue globalization. Recently, the company’s founder, Jack Ma, came to the US to attract US businesses to sell on its websites.
In the latest move toward globalization, Alibaba has invested an additional $1 billion in Singapore-based e-commerce firm Lazada. The Chinese firm now holds an 83% stake compared with its previous 51% stake in the company. This values Lazada at ~$3.2 billion.
More detail here
Lazada goes offline via partnership & brick-mortal stores
Southeast Asia’s dominant e-commerce player, Lazada, has joined hands with Unilever in hopes of grabbing a bigger slice of the region’s online retail market in fast-moving consumer goods that is projected to reach $25 billion by 2020.
As part of the deal, the two companies will work closely together on supply chain, fulfillment, data, marketing, social commerce and talent development to grow their business’ reach in the region.
“The goal is to find better ways to address the exploding middle class across Southeast Asia and communicate directly with them,” Maximilian Bittner, Lazada Group’s CEO told CNBC about the partnership.
Lazada’s fast-moving consumer goods (FMCG) product category grew by 181-percent in 2016 over 2015, making it the platform’s strongest growth category. The Alibaba-backed company sells 39 million products across Southeast Asia, including electronics, home products and fashion.
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Singapore CapitaLand inks pact with Alibaba & Lazada to connect shoppers offline and online
CAPITALAND has tied up with two leading e-commerce players – Alibaba Group and Lazada Group – as it positions itself as an “omni-channel” retail landlord that connects retailers to shoppers offline and online.
CapitaLand said on Wednesday that it inked an agreement to manage Alibaba Shanghai Centre – the e-commerce giant’s new headquarters in Shanghai will comprise four office towers and a retail podium – to “reinvent modern retail through the seamless integration of offline and online (O&O) channels”.
In Singapore, the real estate stalwart signed a pact to launch an exclusive online mall on Lazada Singapore which is part of Lazada Group.
The shop-in-shop on Lazada.SG will position CapitaLand as Singapore’s first omni-channel retail landlord that connects retailers to shoppers both offline and online, complemented by a unique in-mall collection service for shoppers, said CapitaLand.
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Lazada Malaysia offers offline payment services in stores nationwide
KUALA LUMPUR: Leading online store, Lazada Malaysia, is offering customers offline payment services in stores nationwide through its partnership with 7-Eleven Malaysia
Chief executive officer Hans-Peter Ressel said this would allow payment flexibility for customers through offline transactions.
“Some customers prefer cash on delivery, some online transaction while other customers like to pick up their items there in the stores. Through this collaboration, we enable Malaysians to shop for over 12 million items available on our website, combining with the familiarity of paying over-the-counter at any 7-Eleven store nationwide,” he added.
7-Eleven is the number one convenience store chain in the country with more than 2,150 stores, serving over 900,000 customers daily.
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Lazada Malaysia CEO: While online sales grows, most shopping is still done in stores
KUALA LUMPUR, May 3 — In the last five years, the typical Malaysian online shopper has “transformed” from a young urban male to a family man. Or woman.
“When Lazada Malaysia was launched in March 2012, online shoppers consisted of mainly urban male youths aged between 18 to 23 who were constantly on the hunt for gadgets and cheap deals,” Hans-Peter Ressel, CEO of the popular online shopping platform, said.
“We also see a strong shift from electronic items to lifestyle, health, beauty and fashion related items. The share of electronic products is much smaller today.”
According to Ressel, Lazada attracts about 30 million visits to their website every month.
Last year, statistics portal Statista estimated the total revenue for the Malaysian e-commerce market would hit US$894 million (RM3.75 billion) with the revenue expected to see an annual growth rate of 23.7 per cent in the next five years.
At present, electronics and media make up the bulk of the e-commerce market with a volume of US$380 million (RM1.64 billion).
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Lazada marketing strategy 2016 – The Southeast Asia Door for Alibaba!
Lazada’s goal has always been simple: the company aimed to be the largest and most successful e-commerce site in Asia and be known as the Amazon of the East. At the moment, Lazada’s team is made up of over 7000 full-time employees. 5 million visitors visit the site daily through mobile app and desktop. Over 13 million users follow Lazada online, making it the top-ranked e-commerce company on social media today. Lazada is a significant retail channel that offers merchants and brands quality marketplace solutions and access to over 550 million consumers.
Chinese e-commerce giant Alibaba has agreed to buy a controlling stake in Southeast Asian online retailer Lazada to tap into the region’s lucrative consumer market.
Under the deal worth approximately $1 billion, Alibaba will buy around $500 million worth of newly issued shares in Lazada, as well as acquire shares from some existing shareholders.
Alibaba President Michael Evans said the investment will support Alibaba’s expansion plans in Southeast Asia.
“With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation for future growth in one of the most promising regions for e-commerce globally,” he said in a statement.
Germany’s Rocket Internet will sell a 9.1 percent stake in Lazada for $137 million in cash but will still have an 8.8 percent stake. British supermarket giant Tesco will sell an 8.6 percent equity stake in Lazada for $129 million, bringing down its stake in the company to 8.3 percent. Tesco said that the proceeds from the deal will be used for general working capital.
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Southeast Asia-focused eCommerce startup Lazada, which Alibaba purchased a controlling stake in last year, may soon face some stiff competition from eCommerce giant Amazon.
For now, eMarketer pointed out, Lazada Group dominates the eCommerce activity and web traffic in the markets it serves, which includes mainly in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Last December, Lazada’S online properties attracted the largest number of page views among B2C retail sites in Thailand, Indonesia, Singapore, Malaysia and Vietnam, data from SimilarWebconfirmed.
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Lazada Philippines bullish on e-commerce growth in 2016
MANILA, Philippines – Lazada Philippines co-founder and CEO Inanc Balci has a lot of reasons to be optimistic about the coming year.
Launched only three years ago in 2012, Lazada now offers an assortment of over 1.2 million products from over 4,500 merchants and 1,700 brands on its website. With 80 percent market share, the e-tailer is also now the country’s biggest e-tailer and is setting its sights on more aggressive targets anchored on three main pillars – large assortment of products, low prices best customer service.
Fresh from the success of the month-long ‘Online Revolution’ campaign that started on Nov 11, Balci disclosed that during the start of the campaign, which coincided with the 11.11 Global Shopping Festival day itself, the e-commerce site has exceeded its targets.
“In one day, there were 2.4 million visits on the website versus 700,000 of last year,” Balci shared. “Customers bought 120,000 items on the website. To be honest, our target is less than 100,000 and we were so happy. Last year, we sold 44,000 items.”
Lazada sold more than 5,000 smartphones and 4,500 packs of disposable diapers. Sixty percent of orders are from mobile devices and 70 percent of total orders come from outside the national capital region.
“More and more customers are buying from mobile devices. Lazada is becoming a mobile commerce company and as mobile smartphone penetration is increasing we are selling more smartphones,” Balci said.
Lazada marketing strategy 2015: Aiming for $1Billion revenue – Mobile booming time!
Lazada – which operates in Singapore, Malaysia, Indonesia, the Philippines, Thailand, and Vietnam – is on course to pull in about US$1 billion in annual gross merchandise volume (GMV) once 2015 ends. GMV is the value of items that shoppers buy.
GMV hit US$433 million in H1 of this year, which was up four-fold from the same period a year ago.
The store has about 5.7 million active customers, which is up four-fold from 1.4 million in H1 2014.
Lazada’s net revenue reached US$121.1 million in H1, up from US$64.5 million 12 months earlier.
The estore has now largely shifted from directly selling items that it stocks to having an open marketplace, more like the Alibaba model with Taobao and Tmall. Lazada now has 27,000 active merchants and about 80 percent of consumer expenditure is from the marketplace.
That major shift to third-party merchants means that Lazada can save money on storing its own stock and instead shift that capital to helping merchants with logistics to ensure speedy delivery in a region hobbled by fragmented and poor infrastructure. Lazada has “fulfillment routes” across Southeast Asia, moving sellers’ items to 62 last-mile distribution hubs across its six nations to try speed up deliveries. That also reduces costs for shoppers as it minimizes shipping by air, the company points out in the slideshow of data it published today.
Rocket addressed that shift to mobile, saying that Lazada crossed a milestone in Q2 2015 as more than half of the spending total came from mobile. Mobile GMW was 51 percent of total GMV in Q2, moving upwards further to 58 percent in August.
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Lazada marketing strategy and eCommerce market share 2014
Lazada losses and revenues double
Lazada’s six general merchandise sites operate in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. Lazada’s net revenue was US $154.3 million last year, more than double 2013 results of $75.5 million. Yet the company’s net operating losses (EBITDA, or earnings before interest, taxes, depreciation and amortization) were $152.5 million, also more than double the 2013 figure of $67 million.
GMV for Lazada grew more than 300% in 2014, from $95 million to $384 million. In terms of adjusted Ebitda (that is, adjusted for share-based compensation), Lazada lost $58.5 million in 2013 and $146.7 million last year. The 2013 loss was 62% of GMV; in 2014, the loss was only 38% of GMV.
More details: https://www.forbes.com/sites/susancunningham/2015/05/12/rockets-lazada-and-zalora-lost-235-3-million-in-2014-but-are-moving-toward-profitability/
Lazada’s websites started out three years ago as inventory-based direct retailers–thus,”the Amazon of Southeast Asia” moniker. In the past year, though, the switch to a primarily “marketplace” business model was the most significant driver of revenue growth, accounting for about 70% of Lazada’s monthly sales as of November last year.
Under a marketplace model–as followed by eBay, Thailand’s Rakuten Tarad , Malaysia’s Lelong and Indonesia’s Blibli–third-party merchants and brands sell products from their own niches on a huge site. According to Rocket’s annual report, its marketplace sales increased 20-fold from January to December 2014. Lazada charges a commission on such sales.
*** 2014 revenue increases five-fold.
E-commerce website Lazada’s revenue for 2014 reached VND524.5 billion ($24.4 million), or a five-fold increase against 2013 and double the average growth in the market.
March marks its 3rd anniversary of operations in Vietnam, notching up half a million customers in the process with more than 200 million hits and leading Vietnam’s e-commerce sector, according to CEO of Lazada Vietnam, Mr. Alexandre Dardy. In 2014 it sold 300,000 items and had over 1,500 individual vendors.
The Vietnam E-commerce and Information Technology Agency (VECITA) under the Ministry of Industry and Trade, reported recently that Lazada in Vietnam overcame 216 other e-commerce websites available in the country during 2014 to record the highest revenue, accounting for 31.6 per cent of the total.
Behind Lazada came Sendo, Zalora, Tiki and Ebay, with market shares of 14.4, 7.2, 5.4, and 3.6 per cent, respectively.
The VECITA report also revealed that total revenue last year of e-commerce websites reached VND1.66 billion ($74.49 million), doubling the result in 2013.
As at the end of last year the Lazada Group had invested up to 200 million euros ($213.4 million) to develop six markets in ASEAN: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
Lazada marketing strategy 2013 – Raising fund & educating customers
Lazada has just raised another US$100 million investment round and looks to conquer the region’s e-commerce scene. Here’s the company’s scoresheet, so far.
Published on: Jun 20, 2013 @ 18:12
Lazada, an Amazon-like marketplace headquartered in Indonesia, has just raised another US$100 million round of investment.
The investment round is participated by Holtzbrinck Ventures along with its existing investors Kinnevik, Summit Partners and Tengelmann Group. The funding round shows a huge vote of confidence by existing investors participating in the latest round: Kinnevik invested US$40 million in November 2012, Summit Partners added US$26 million in December 2012, and Tengelmann Group came in with around US$20 million back in January 2013.
Launched back in April 2012, Lazada has since expanded its presence and currently operates in Thailand, Vietnam, Malaysia, the Phillipines and Indonesia. Let’s take a closer look at how they are doing in these countries.
- Indonesia – Makes up 30% of Lazada’s regional revenue, investing in logistics
- Malaysia – aiming to capture 5 percent of e-commerce market, working on localization
- Thailand – takes up biggest portion of Lazada’s marketing budget, sees 4 million monthly visitors
- Vietnam – possibly doing US$15 million in sales last year; 10 percent of transaction now comes from mobile
- Philippines – no official statement on sales and revenue
- What does this all mean?
More details: e27.co
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