By Brandon Teoh
Lazada.com.my is Malaysia’s fastest-growing online retailer. The e-commerce site for assorted goods is already ranked among the top 100 most-visited sites in Malaysia by Alexa Rating System less than three months after going live. Lazada also has regional presence in Vietnam, Indonesia, Philippines and Thailand. Lazada stocks both local and international brands such as Samsung, Nikon, Sony, Nokia, Apple, Philips and many others. Its product range includes Electronics, Books, Home Appliances and Décor, Kids’ Toys, Video Games, Health and Beauty as well as Sports Equipment.
It has recently been confirmed an investment by J.P. Morgan Asset Management, which will take a stake in LAZADA through its German holding.
It was first launched in five Southeast Asian countries during the spring of 2012, and is claimed to have become the fastest growing online department store in the region. Since then, LAZADA has surpassed most established local and international competitors and according to web ranking site Alexa.com it is already ranking among the top local B2C eCommerce sites in all of its markets
With the support of Rocket Internet, the leading global online venture incubator (e.g. Zalando, Dafiti), LAZADA has already established itself as a household name in the region by providing a one-stop shopping experience online. With an unrivalled brand and product selection available online, LAZADA has developed a wide offering ranging from consumer electronics to household goods, toys and sports equipment. Today, approximately 1,000 employees are operating streamlined businesses with own logistics and distribution centers in Indonesia, Vietnam, Philippines, Thailand and Malaysia.
According to Wayne Liew (Associate Marketing, SEO), Lazada aims to be cheapest on hot products and promotional products. However, it doesn’t aim to be the cheapest on all products.
On competition, Lazada competes by leveraging on unique services that they provide, such as free delivery, COD, a 14 day return and exchange policy and full manufacturer warranty on all products.
Lazada wants user to have the experience that 1.) Lazada is convenient and 2.) Lazada is a safe place for online transaction.
Promotion is their strategy for increasing market share.
“We work closely with our corporate partners, for instance we began a partnership campaign with Starbucks in July, that have been popular amongst the netizens when shoppers purchased a Frapuccino from Starbucks they received RM50 voucher when they made a purchase over RM150 during July and August, similarly when Lazada customers shop over RM100 they get a complimentary Starbucks Card preloaded with RM10. We had voucher promotions with TGV cinemas and MAKNA which is Lazada’s charity partner group.” said Wayne.
“We are currently working with banks on a loyalty program for better value for money as well as planning promotions that can be offered to credit card holders exclusively and zero interest rates for installments. Next month we will be doing more promotions where we will be giving away exciting prizes with media partners where shoppers that hear about Lazada from these sources stand a chance to win big prizes from Lazada.” added Wayne.
Besides running seasonal deals, Lazada also has attractive deals on the websites with discounts and a special daily deal banner, where hot products are placed on high discounts for a limited time.
The CEO of Lazada is Maximilian Bittner, who had worked as an executive at companies like Morgan Stanley and McKinsey & Company.
Lazada websites do not accept advertisements.
