Lazada’s LazMall Brands Future Forum (BFF) 2021 Quick facts or stats mentioned within the speeches
On Sep 1st , Lazada held its 2nd Edition of LazMall Brands Future Forum (BFF) 2021 at Marina Bay Sands Expo & Convention Centre in Singapore. It was themed Rising to the Future: Southeast Asia’s Digital Commerce , the morning itinerary was packed with various talks by the higher management of the Lazada Group, sharing about the growth of Lazmall and its commitments.
Mr Chun Li , Photo Courtesy of Lazada
With the first speech by Mr Chun Li (Chief Executive Officer, Lazada Group), it was mentioned that Lazada have grown 100 per cent year-on-year between December 2019 to December 2020. It Is indeed a opportunity set up for the rise of E-commerce as physical shops shut in the midst of the pandemic.
On the consumer side, it is said that:
- With the millions of new customers shifting towards the use of online shopping, it is said to accelerate the shift towards eCommerce. 40 million new internet userscame online in 2020 alone in Southeast Asia. This puts around 70% of the region’s population on the Internet.
- An annual active consumer usage of more than 110 million. The customer traffic has consistently increased, with over 150 million monthly average
On the Consumer side, it is said that:
– We found 70% of our Southeast Asia online sellers have confidence in their business prospects and growth over the next three months. In fact, our fashion sellers expressed the greatest leap of faith where 75% say they expect business to improve by more than 10% over the next quarter.
– First, we help Brands manage and customize their customer life cycle. From optimizing traffic to your online stores to creating a strong online- offline linkage. You are going to hear a lot more about this during this Forum.
Second, we want to enable brands to manage and grow your eCommerce channel on Lazada. We are building a holistic ecosystem with eCommerce components. We have different models for Brands to work with Lazada – you can choose to operate your own storefront and work with Lazada Partners, leverage Fulfilled by Lazada or Lazada Retail if it is more efficient for you.
Third, we want to create great customer experiences. The customer experience during the buying journey is now much more important. In the early days of eCommerce, price was key. Today, customers expect more than service excellence and ease of purchase or accurate deliveries. That’s a given.
Mr James Chang, Photo Courtesy of Lazada
James Chang, Head of Strategic Accounts and Retail, Lazada Group
He mentioned pointers based on the Google, Temasek and Bain e-conomy SEA 2020 report, where the eCommerce in our region was around $5B USD in 2015, and had reached around $62B USD in 2020. That is more than 12X growth in size within this period of the pandemic.
It was also mentioned that between 2019 to 2020, categories online retail share has grown differently. This total online transaction in value compared to overall category sales for the region.
- Electronics went from 14% online to 21% online
- Fashion went from 9% to 13%
- General merchandise like Home & Living and Kitchen and Dining from 6% to 9%
- Health and Beauty has grown online share the most going from 5% to 9% almost doubling the online penetration.
Due to the pandemic, more and more competitions will be coming online and companies’ advantage of early ecommerce adoption will be challenged. But! It also means that if your brand navigates this growth phase, there is great opportunities to improve the brands’ overall market share of the category.
Based on the survey done in Singapore, more than 40% of Lazada customers buy prestige items above $3K SGD and 41% of them do buy luxury items online. Our goal is for LazMall prestige to become part of the purchase journey for the prestige brands.
Mr Raymond Yang, Photo Courtesy of Lazada
Raymond Yang, Chief Product Officer, Head of Platform Operations, Lazada Group had spoke on the AIPL, means Awareness, Interest, Purchase and Loyalty. These represents the four major steps of the customer purchase journey. It is designed to offer strategic insights to expand a company’s consumer outreach, optimize advertising investment portfolios and enhance buyer retention and repurchase, beyond growing their Gross Merchandise Value (GMV).
Mr Yang also mentioned on the first LazMall Brand Ambassador – Korean superstar Hyun Bin at the event and that they are thrilled to have one of South Korea’s most internationally-acclaimed celebrities join their family