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Business & Commerce Entertainment

Breaking Records and Bringing Joy
to Brands and Consumers for 11.11

By LazBeat Staff
Nov. 16, 2020

In a year that has seen Covid-19 create unprecedented challenges across all sectors of society, Lazada Group’s 11.11 Shopping Festival was designed to give merchants and consumers alike a reason to spread joy, said Lazada co-president and regional head of commercial, Jessica Liu.

At the Alibaba Global Pulse Press Conference on Oct 29 in the lead-up to 11.11, Liu offered an overview of the highly anticipated shopping event. She also explained how Lazada, Alibaba’s flagship eCommerce service in Southeast Asia, was fully committed to empowering micro, small and medium-sized local businesses to find new opportunities through e-commerce, while also helping international brands connect and engage with consumers from this diverse and dynamic region.

Liu sees eCommerce as the future of Southeast Asia. “Building a trusted, safe and reliable platform for consumers is our number one priority,” she said. “We have an unrivalled advantage in the region because our digital commerce infrastructure is powered by Alibaba’s technology, and our fulfillment and logistics capabilities are comprehensive and advanced in the region,” she added.

11.11 Performance

In the lead up to 11.11 and during the platform’s biggest retail event, Lazada’s capabilities were on full display. It is well known that 11.11. drives massive order volumes. And this year Lazada surpassed its 11.11 shopping festival records, with more than 40 million users and 400,000 brands and sellers participating in the one-day sale event across the region. The majority of these brands and sellers were local small-and-medium enterprises, and of these, more than 8,000 of them garnered over USD10,000 in sales in a single day. This yearly 24-hour shopping feast has been a golden opportunity for sellers to recover and regain growth in a year when retail has been hit particularly hard by the pandemic.

LazMall, Lazada’s premium platform for authentic brands and the region’s largest virtual mall, also broke record by exceeding its 11.11 sales performance last year in under half a day. It welcomed four new joiners, including Tefal, to its list of 26 brands who made the ranks of its LazMall Millionaires Club, which are brands that achieved sales exceeding USD1 million in one day. Electronics brand Samsung also became one of the first two brands to hit over USD10 million in sales.

Data insights from the eCommerce platform proved especially helpful to participating brands and businesses in the wake of new consumption patterns shaped by pandemic restrictions. For example, demand surged for health-related products, children’s toys, home décor, kitchenware and home-office equipment once lockdowns were imposed across the region. That prompted many sellers to stock up on these categories in the run-up to 11.11, Liu said at the Oct 29 conference.

South Korean actor and model Lee Min Ho as Lazada’s first regional brand ambassador for this year’s 11.11

This year’s blowout 11.11 success was also a shining example of Lazada’s immensely successful “Shoppertainment” strategy, a stellar blend of retail and entertainment. A month earlier, Lazada had kicked off its 11.11 campaign by announcing South Korean actor Lee Min Ho as its first regional brand ambassador – a move that underlined its continuing commitment to bringing A-list entertainment to shoppers on its platform. Not only did the mega sales event feature more than 200 million shopping deals, it also exploited to the utmost Alibaba’s digital technologies to create highly personalised and engaging consumer experiences. These ranged from data-driven product-discovery journeys and exclusive 11.11 catalogues to a star-studded show and an interactive game that allows users to win redeemable rewards worth close to USD2 million.

By launching its new game Happy Bounce in the lead-up to 11.11, Lazada saw increased user engagement of over 3.5 times as consumers spent more than 70 million minutes playing Lazada’s in-app LazGames titles. Along with Fun Farm, both new games saw players collect more than 20 million vouchers in 24 hours. LazLive, Lazada’s livestreaming technology, gathered over 11 million views on Nov 11 alone and saw more sellers adopt the service, which resulted in a 380% year-on-year growth in GMV generated from their sessions. In Vietnam, the platform’s Super Show gala event attracted nearly 10 million views across all channels, including TV networks, YouTube and LazLive.

By leveraging all of Lazada’s digital innovations and delivery capabilities, Liu said at the Oct 29 event that this year’s 11.11 would empower sellers and delight customers across Southeast Asia.  

“Together with local businesses and renowned brands, we have curated the best-value deals for the eighth edition of our 11.11 Shopping Festival that will no doubt bring non-stop happiness to our shoppers in the region so they can treat themselves and their loved ones this year,” she said.

Looking at the record-breaking results that Lazada’s 11.11 has achieved, Liu’s words rang true for businesses and shoppers throughout the region.

Lazada co-president Jessica Liu, who is also regional head of commercial, details the efforts in the build-up to 11.11 at the Alibaba Global Pulse Press Conference on Oct 29.

Featured photo above shows Lazada’s Jessica Liu on the panel with other Alibaba executives, including (from left to right) Alibaba Group’s chief marketing officer Chris Tung,  president of Tmall import and export Alvin Liu and the general manager of Cainiao Global Supply Chain James Zhao.

Categories
Business & Commerce

Behind the Scenes:
Revamping Seller Platform and Features

By Haniko Martin Tio
Nov. 16, 2020

Just in time for Lazada’s 11.11 shopping festival this year, the revamp of the Alibaba Seller Centre that began in March was completed and ready to make onboarding, listing, managing, marketing and selling products more efficient for sellers.

Lazada initiated the changes, based on a survey with about 6,000 sellers online and interviews with 20 sellers individually that identified the pain points and areas where the process can be improved.  

“We heard our sellers’ feedback loud and clear, we will keep lowering the entrance barriers for eCommerce, especially for sellers venturing for the first time into it,” said Aidan An, executive vice president of seller product. “Our top priority is to optimize the user experience, from onboarding to product listing, to the day-to-day and campaign management process.”

For instance, by leveraging Alibaba’s technology, artificial intelligence (AI) can now automatically populate the product category and more key features to enhance the content quality, An explained. Sellers only need to upload a product image and leave AI to do the rest. That means they can now list their products about four times faster than before. Under a pilot project in Malaysia, simplifying the onboarding process boosted the number of new sellers by nearly 25 per cent within three months.

Alibaba Seller Centre’s new design and features

“I love the new design of the homepage, especially the shortcut icons. It saves time by allowing us to access all the frequently-used features,” said Lim Szu Xin, an authorised dealer of the Autobacs franchise, who has been selling autoparts and accessories on Lazada for about three years. She also has a physical store in Singapore. Selling online has helped her reach a younger demographic of customers, who are more digitally-savvy, Lim said.

Thai seller Thanaporn Chumphonphaisan’s family has been in the garment business for 30 years and owns a factory that makes jeans. Six years ago when revenue started sliding by 90 per cent every month, She closed all her physical stores and moved the business completely online. She reckoned that the revamped platform saves her about 80 per cent of her time every day, because she spends most of her time tracking logistics, such as pick-up status, and details of item in an order.

The mobile app homepage also underwent a significant redesign to better provide actionable data insights for Lazada sellers, so that they can quickly pivot to cater to consumers’ changing preferences – while on the go. The redesign has also boosted the stickiness of the app’s usage. At a later stage, a new order management page will be rolled out more widely. This will offer such handy features as a simplified summary dashboard and overview of logistics status.

“I quite like the product upload design,” said Rehiga Muktilana, a seller who is still in school.  The 19-year-old Indonesian student started selling small household items online only this year after seeing advertisements on social media and getting a recommendation from a friend. Since the outbreak of the pandemic, he said he has seen a demand for portable laptop tables, mirrors and plastic cups.

“The process is easy enough for someone like me who is just starting out the eCommerce journey,” said Muktilana, who aims to be financially independent so he can fund himself through high school and university. 

“Customer first is our core value. We aim to provide our Lazada sellers the best experience in Southeast Asia. That’s why we started this project,” said Gerald Tang, head of seller operations at Lazada. “We will continue to invest in simplifying our product, increasing sellers’ operation efficiency and making it easy for sellers to work with us. Fast onboarding, easy listing, clearer order management, simpler seller tools, and so on, we will continue to listen to our sellers and provide them better solutions, to empower our sellers for both mega campaigns and daily sales.”

Tio is a product operations manager who works with Lazada’s sellers

Featured photo above shows Thai seller Thanaporn Chumphonphaisan (top), owner of garment shop Saza, who went completely online and closed all her physical stores after steep declines in revenue, and Lim Szu Xin (bottom), an authorised dealer of an Autopacs franchise in Singapore, holding up one of the many  products she offers online. PHOTO CREDITS: Saza and Autopacs

Categories
Business & Commerce Inside Lazada Logistics

Lazada Group CEO:
Building the Future of Digital Commerce
in Southeast Asia

By LazBeat Staff
Oct. 15, 2020

In the monograph on his book, Good to Great, author Jim Collins pointed out that the “big thing” for a truly great company is neither a single innovation nor one grand plan. Instead, it’s the underlying flywheel architecture, properly conceived, built over time, slowly gaining momentum, and eventually breaking through.

At Alibaba’s Investor Day on September 28, Lazada Group’s chief executive officer Li Chun cited this flywheel concept as a way of reiterating the company’s long-term strategy of building a healthy sustainable business by investing in technology infrastructure and logistics capabilities.

As Alibaba’s flagship platform in Southeast Asia, Lazada wields the competitive advantage of tapping into two decades of experience and cutting-edge technology from the world’s most successful eCommerce player. What matters most, Li said, is creating real value for consumers, brands and sellers across the region as the company builds to last.

Lazada Group CEO Li Chun in Singapore, sharing the stage in Hangzhou virtually with other Alibaba executives, including executive vice chairman Joe Tsai and chief financial officer Maggie Wu, both broadcasting remotely from Hong Kong.

Some key highlights from Investor Day:

Strong sustainable growth momentum in the past year

With a culturally diverse population of more than 650 million and a rapidly digitalising economy, Southeast Asia is fertile ground for eCommerce. During the COVID-19 pandemic, digital adoption surged in the region; brands and sellers raced to onboard Lazada’s platform at an unprecedented pace. In the 12 months ended July, Lazada had more than 80 million annual active consumers, and active monthly users topped 100 million in July. Year on year, its quarterly order volume has doubled for the past three years.

Moreover, key performance metrics illustrate strong growth momentum. With the time that users spend on the Lazada app and purchase frequency increasing year-on-year by 20 per cent, the platform is demonstrating that it is enabling businesses to grow. The number of sellers generating more than USD 5,000 a month in sales has more than doubled. Gross merchandise value growth year-on-year per marketing dollar is 90 per cent, reflecting how smart algorithms are enabling an effective marketing model and achieving scalable efficiencies.

“As a result of our data-driven approach, only a small proportion of our overall gross merchandise volume (GMV) is driven by subsidies,” Li said. “Minimal marginal costs mean our business model is both scalable and sustainable. Strong fundamentals, dedication and a customer-first mindset, all contributed to Lazada being a quality platform, with both quality users and supply.” 

The Tech Advantage

When Li joined Lazada in 2017, his first priority was to transform its product and technology architecture, cognizant that it would be the main engine of the company’s growth. Since then, Lazada has, among other things, revamped its core eCommerce platform, consumer app, seller centre, as well as its AI and recommendations engine. Lazada’s tech architecture is key to improving the experience of users, partners, sellers and brands.

Notable examples include how Lazada’s artificial intelligence technology effectively matches the right products to the right consumers at the right price point, while its proprietary operating data dashboard provides sellers and brands with real-time, actionable insights on buyers’ preferences and business performance, allowing them to react smart and pivot quickly. Lazada Sponsored Solutions, launched earlier this year, further equip merchants with a suite of marketing tools, from on-site ads to offsite affiliate marketing, to better reach potential customers.

The Logistics Differentiator

Logistics is critical to the eCommerce value chain, especially in Southeast Asia with its geographical vastness and diversity. Lazada has the region’s largest, most intelligent integrated logistics and supply chain network for eCommerce. Today, its network across these six countries includes fulfilment centres sited on more than 300,000 sqm of land, over 15 sortation centres, and close to 400 pick-up and delivery hubs. All these are powered by a data-driven, smart routing algorithm, enabling the company to meet the surging demand of Southeast Asia’s flourishing eCommerce industry. More than 85 per cent of total parcels delivered are now sorted by Lazada’s proprietary network.

With e-logistics still in its early days in Southeast Asia, Lazada is just only starting to see how smart logistics and network control can empower businesses and give customers a better shopping experience. Logistics is a game of scale – the wider the network, the more cost efficiencies can be achieved through network synergies, and the better the experience for customers.

The Commitment to Southeast Asia

Li concluded his presentation by declaring the commitment of Lazada’s financial, people and technology resources to the region. Execution and innovation are of the utmost importance.

Lazada is fully backed by Alibaba Group, whose vision is to be a company that lasts for 102 years, with Southeast Asia being a the key pillar of its globalisation strategy.

“We are playing the long game,” he said. “This is not a fight over the next four or eight quarters. It’s a battle spanning the next three, five and even eight years. We are here to stay.”

Lazada Group CEO Li Chun broadcasting remotely from the Singapore office during Investor Day.

Categories
Business & Commerce

Sweet Transformation
of a Traditional Family Business

By LazBeat Staff
Oct. 15, 2020

Growing up in Vietnam’s Central Highlands region famed for its tea and coffee, Lê Đức Minh and Lê Đức Duy watched their parents and other farmers harvest, dry and pack their tea leaves for sale. They remember how tourists would come from far and wide to the highlands city of Bao Loc to taste the tea, and how their mother would proudly tell customers what care and labour went into producing the quality tea they sold. How only the newest leaf buds were plucked, how these were withered and oxidised to retain their enzymes, so that they would retain their flavour and health benefits.

The brothers, now 26 and 25, have grown the family business, and sweetened it. They work with the region’s bee farmers and producers to meet the growing demand for honey and honey-related products. To reflect their mother’s dedication to quality, Đức Duy and Đức Minh consolidated all their products under a single brand name that honours her: “Cô Cự,” which means “Mrs Cự.”

“We named the brand after our mother to retain the traditional aspects of our business and remind ourselves to continue our parents’ dream and passion of selling authentic, quality products at affordable prices for the Vietnamese people. This is a passion shared by many of the local farmers here.” Đức Duy said.

Đức Duy (in first picture above) with industrious bees from Italy at a farm in the Central Highlands where they produce their famous golden yellow honey. These hard working bees are thought to be more productive as well as more resistant to disease.

The brothers have bigger dreams. They want everyone across the country to be able to buy and enjoy their products, whether they are in Bao Loc, or far away. Four years ago, their dreams took them online and into the eCommerce world.  About a year ago they joined LazMall because of its commitment to authenticity and the assurance of quality it offers consumers. Having successfully digitalised their business, they closed all 18 of their physical stores, and now sell their products exclusively online.

Going digital has revived and re-energised their family business, and helped to sustain the livelihoods of the highlands farmers, the brothers said.  Their story has had its ups and downs.

“About 10 years ago, we started to see an influx of products that mimicked ours, but at much lower prices and more inferior quality. The competition hurt our business and our parents had to scale it back. We started to lose some suppliers and customers,” Đức Minh said. “It was tough, seeing our parents’ and the local farmers’ businesses suffer. We decided we needed to look at doing things differently.”

Selling online was a brave new world. The brothers didn’t know how to begin. But they took courses from Lazada University and became involved in the Lazada Sellers’ Club to learn the tools of the trade, as well as tips from other sellers. During the last 11.11 mega shopping festival, the brothers received more than 2,000 orders a day for their honey products.

“Seeing trucks loaded with Cô Cự’s honey products being shipped out is probably one of the happiest moments of our lives,” Đức Duy said. 

During the pandemic, they’ve sold nearly 4,000 litres of honey a month. The brothers believe that as people became more concerned about health and wanting more nutritious products, they were naturally drawn to honey.

Using the same care and dedication to quality that their parents lavished on their tea, the brothers always ensure that their bees are in the pink of health and in the largest numbers before moving the colonies to the “blooming areas” to harvest the honey. The farm staff will also take care to scout for areas where flowers are in full bloom. The brothers use only Italian bees, as these  are thought to be not only highly resistant to disease but are amongst the most productive. This means that the golden yellow honey they produce does not need any artificial treatment and can be stored for more than three years without discolouring.

“The mountainous area of Bao Loc is a great environment for bees. Each package, each product, is a gift of nature to our customers’ health,” Đức Minh said.

Besides ensuring that their facilities comply with regulatory standards for food safety and hygiene, the brothers also work with exporters to ensure that their products meet international standards and are certified as such. This will position them well to one export their products. “Then the world may also learn about and enjoy the tea, coffee and honey from Bao Loc.”

The Central Highlands of Vietnam is a region that has long been known for the delicacy of its tea. 
Categories
Business & Commerce

Behind the Scenes:
Lazada Brand Protection SWAT Team

By Juliane Rose Sun
Oct. 15, 2020

In late September, police raids across several store locations in Thailand netted US$1 million of counterfeit products. Thai authorities seized counterfeit ink cartridges and print supplies under the HP Inc brand. The counterfeiters had been selling them on Lazada.  

HP credited Lazada for exposing the illicit sale of counterfeit goods and said that the successful raid was possible due to the sharing of vital intelligence by Lazada with HP’s anti-counterfeit team and the Thai police.

Online marketplaces are reflections of the realities in the offline world, and removal of product listings suspected to be counterfeit is merely a band-aid to a deeper seeded problem. The root cause needs to be addressed to make real and concrete progress, which means catching the bad sellers and manufacturers of the counterfeit goods that exist in the physical world. While Lazada can help offer leads through the digital trail left behind by these criminals, only law enforcement and government agencies can take action to put them behind bars and permanently interrupt the counterfeit trade.

“The use of unlawful counterfeit supplies can result in printer damage, malfunctions, and printer hardware warranties becoming void. To protect consumers, businesses, customers and partners, the HP Anti-Counterfeiting and Fraud Program proactively works with partners like Lazada to deliver added value to consumers, business customers and partners. This ensures security, reputation protection, seamless operations and cost savings,” said a HP spokesperson.

In another recent raid, Malaysian authorities seized more than 90 counterfeit Panasonic electrical products at the GM Plaza in Kuala Lumpur. They confiscated hair clippers, blenders and irons. Counterfeit electrical goods pose potential safety hazards to consumers as they are unlikely to meet compliance standards. Materials used to make the counterfeit goods are probably of low quality. For this reason, brands like Panasonic are all the more invested in stopping the manufacturing and distribution of counterfeit goods.

As online shopping becomes mainstream, eCommerce platforms, brands and law enforcement authorities are working more closely together to identify, locate and take down counterfeiters. Conducting a raid is complex and often involves multiple parties. Such essential collaboration protects consumers from unwittingly buying and using unregulated and possibly unsafe items. Concerted action effectively deters offenders because they know their illegal activities are under continual scrutiny.

“There are now a lot of people who are new to online shopping, and thus more vulnerable since they do not know how to protect themselves,” said Andy Chua, the senior vice president who leads the regional brands protection team at Lazada. The team, formed in March 2019, now comprises nine people, all with experience working in the fraud prevention and risk management fields, in both the public and private sectors. Chua spent 17 years with the Singapore police force as an officer, including enforcing and investigating intellectual property rights infringement.

Leveraging on Alibaba’s technology, the team manages Lazada’s Intellectual Property Protection (IPP) platform. This is an online portal for rights owners use to upload their proof of IP rights. This then enables them to submit requests against listings that may infringe on their rights, seek their removal and track the progress of their request. Once submitted, the removal request is processed within three or four days on average.

Lazada’s brand protection team also puts measures in place to proactively monitor the platform for counterfeits. Working with the brands, such monitoring mechanisms have been so effective that they can zero in on fake products and remove them automatically.  Although still at the pilot stage and limited to the Singapore market only, these mechanisms have already led to 99 per cent of identified fake listings being taken down even before a single sale was finalised.

In addition, Lazada invests heavily in merchant education to maintain rigorous platform governance.  All new merchants are required to go through a series of educational modules through the web-based Lazada University course.  These modules school the newcomers in awareness of platform terms and conditions, as well as policies regarding intellectual property rights. They also make the newbie merchants aware of consequences for non-compliance, which include escalating penalties, account suspension, and account termination.

LazMall’s authenticity guarantee is a prime example of the platform’s commitment to safeguarding brands’ rights and ensuring peace of mind for shoppers looking for branded merchandise.

Consumer education is another integral part of a continuing anti-counterfeiting battle. Chua said: “We urge Lazada shoppers to shop smart, to keep your eyes peeled for potentially fraudulent activity and to report them. If there are certain marketplace discounts that seem ‘too good to be true,’ they usually are. Other telling characteristics of counterfeit products include popular brand names being purposely misspelled and shops with very poor ratings.”

“As an operations team, we run into daily challenges to balance the needs of our sellers, buyers, rights owners and other stakeholders. The problems we solve are complex and involve a wide set of responsibilities, but it is very rewarding to see the platform safe and our consumers happy,” said Simon Zhou, a senior operations manager in the brands protection team.

Juliane Rose Sun is a manager in Lazada’s Security Risks and Enterprise Intelligence team who works closely with brands in safeguarding their intellectual property rights.