KUALA LUMPUR: Lazada released its Lazada Sponsored Solutions' (LSS) thought leadership report titled "Transforming Southeast Asia: From Discovery to Delivery" during its LazMall Brands Future Forum (BFF) 2022 held at Resorts World Sentosa in Singapore.
The third edition brings together the region's industry leaders along with Lazada partners to exchange ideas and innovations aimed at enabling brands and sellers to thrive and offer a differentiated retail experience in Southeast Asia.
With e-commerce user penetration expected to reach 413 million users by 2025, more dynamic shopping journeys are seeing 57 per cent of shoppers in the region are searching for products directly on e-commerce marketplaces, which highlights the importance of e-commerce marketing solutions and businesses digitisation to remain resilient and relevant.
"E-commerce marketplaces like Lazada have surpassed social media and search engines to become the discovery channel of choice. The behaviour and mindset change during the past two years have driven more high-quality consumers who are looking for high-quality authentic products, and high-quality experiences, to come to LazMall. Brands now have the opportunity to build mindshare and connect with consumers using the tools from Lazada, to accelerate their growth in the e-commerce space and engage the right audience," said Lazada Group chief executive officer, James Dong in his keynote.
In their joint address, Lazada Group's chief business officer James Chang, and chief customer officer, Brigitte Daubry shared that LazMall remains a key offering which Lazada will continue to grow and invest in to uplift customer experience, engagement and retention.
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Chang revealed that the company remains confident as buyers continue to purchase, with eight out of 10 consumers continuing to shop online for ease and convenience, despite a lower average spend per user compared to the past two years.
LazMall also saw an unexpected surge in buyer growth, and Daubry spoke about the importance of deep customer understanding and insights in creating more value for shoppers, and to provide them a differentiated retail experience from offline stores and other industry players.
Surveys conducted by Lazada found that customer stickiness and retention was most likely with wider product assortment, competitive pricing, increased convenience and varied options, as well as a highly-personalised shopping experience.
In the search-led LSS report, discovery and product recommendations aided shoppers in the decision-making process, with 94 per cent of shoppers using the search function to discover products on Lazada, and 94 per cent actually purchasing the products they found through search. Additionally, 71 per cent of shoppers purchased products as a result of Lazada's tailored-to-user "Recommendations" feature.
Powered by Alibaba's cloud infrastructure is the enabler behind the platform's offerings, from consumer engagement, seller empowerment and partner integration, Lazada Group's chief technology officer Howard Wang, also took the chance to explain how the company's data intelligence helps brands and sellers target audiences more accurately, and boost conversion.
Wang shared that this is further amplified with the use of augmented reality (AR), which elevates business outcomes and enhances the brand experience for shoppers.
Lazada's AR technology which enables users to try on beauty products in real-time with true-to-life results, enabling brands to provide a customised and ultra-realistic virtual shopping experience.
The platform's Virtual Try On (VTO) feature allows consumers to select and try on products such as eye shadow, eyeline, foundation and blush from wherever they are. VTO has seen significant success with LazMall brand partners in the beauty space, contributing to a substantial conversion uplift of up to more than three times and up to 11 per cent increase in average order value.
To celebrate LazMall's partnership and growth alongside valued brand partners, the winners of the BFF 2022 Awards were also unveiled at the hybrid event. The annual Awards serve to recognise and honour top performing and innovative global and Southeast Asian brands on LazMall as part of the company's effort to promote excellence demonstrated within the online retail landscape and the agility in adapting business strategies in an ever-evolving demanding environment.
