servebolt
Awario
Internet

Deputy General Director of Lazada Vietnam: “In the first 2 hours of the Tet Shopping Festival, we recorded a 97-fold increase in the department store industry compared to normal days”

Economic recession, inflation, rising interest rates … pulling purchasing power down is forecasted to be the picture of 2023. However, many businesses still see opportunities and above all, they have ready resources. for a challenging year ahead.

For example, Lazada, with the trend of online consumption taking the throne and what it has prepared in its decade of operation, 2023 is determined to be a breakthrough year when the Company turns 11.

“E-commerce in the coming year is expected to face many challenges and difficulties. But actually there are many bright spots, that is the belief that we see.” Mr. Dang Anh Dung – Deputy General Director of Lazada Vietnam – shared with us on the last day of the year.

2022 closes with many challenges. What is the business picture of Lazada, sir?

I think 2022 is a pivotal year for Lazada.

The year 2022 is really a tumultuous period for the entire economy in general, but for the e-commerce industry in particular, we see that the online purchasing power has not decreased. However, consumer behavior is gradually evolving towards smarter shopping, looking for better quality products and a more enjoyable shopping experience.

For Lazada, in 2022, we will still focus on four key areas: improving infrastructure, improving human resources, developing business models, aiming to increase customer experience. . This has been the motto of Lazada for the past 10 years.

2022 is called the pivotal year because Lazada has many strong improvements. For example, we apply AR virtual reality technology to the “Virtual Try On – Online Product Trial” feature that allows users to try on lipstick and foundation colors right on the Lazada app for convenient purchasing decisions and easier. After a period of testing, this feature has achieved significant success with LazMall brand partners in the beauty industry, contributing to a 3.1x increase in conversion rates and an increase in average order value up to 11%.

In terms of infrastructure – Logistics, in the past year, we also launched a new Multi-channel Delivery service, and deployed 100 electric motorbikes into delivery operations. In the near future, we will inaugurate a new sorting center in Binh Duong, with a sorting capacity of up to millions of orders per day.

We are also constantly expanding the group of business partners, including sellers and brands, the number of which has doubled in the past year compared to 2021. In particular, Lazada has also converted 300,000 sellers. on the floor, this is a great contribution to our partners in the current digital transformation trend.

Deputy General Director of Lazada Vietnam In the first 2 hours of the Tet Shopping Festival we recorded a 97 fold increase in the department store industry compared to normal days | Internet

How does this year’s growth compare to 2021?

To talk about growth, Lazada evaluates growth from many different perspectives, including (i) competitive growth (indicators compared to last year), (ii) sustainable growth (measurement of the number of more return to use), (iii) balanced growth (comparison between different business lines).

And in 2022 we see all indicators showing positive growth trends. We also noticed that customers come back to shop at Lazada more often, and the new customer base has expanded significantly, the group of shopping products is also spread across a variety of categories.

In particular, 2022 is also the year Lazada focuses on investing in human resources. The company empowers young leaders more, employees also participate in many training courses to improve professional capacity.

With the above premises, in a very volatile external context, Lazada’s sustainability model comes into play. The company is not affected by outside influences, the market share is relatively stable and especially still has double-digit growth: This is a good premise for the upcoming 2023.

Deputy General Director of Lazada Vietnam In the first 2 hours of the Tet Shopping Festival we recorded a 97 fold increase in the department store industry compared to normal days | Internet

In the context that customers are getting smarter and there are many “strong” competitors in the online shopping market, what do you think are the prerequisites affecting the development of an e-commerce floor?

Customers today are much more sophisticated, they have a wide choice of products, sales channels as well as different platforms. This makes the e-commerce floor to really understand customers, know what they need and expect to constantly improve and enhance their experience. In my opinion, in the coming years, understanding the “insight” of customers is a prerequisite in the development process of an e-commerce floor. From that “insight”, the platform can build a seamless experience from the moment people have a need, purchase and the goods are delivered.

A huge opportunity Lazada sees is that online shopping is being seen by customers as other normal shopping channels. That is, before when buying goods through the floor, customers were quite cautious about quality, finding it difficult to pay, transport …, now with improvements in processes, products, and experiences, their satisfaction is increasing. Information has increased significantly, equal to direct shopping.

And this requires us to satisfy almost all of people’s needs, including fresh goods, mother and baby, beauty… Last year, Lazada’s best growth industry was also the grocery industry. Typically, in the first 2 hours of Tet Shopping Festival, we recorded the growth of this industry increased 97 times compared to normal days. It should be emphasized, with fashion items, in the past, people were very hesitant to buy online, but now their trust has increased quite a lot.

Finally, the coverage of user categories also increased. And the changes I see are quite balanced, leading to growth results in a variety of categories. An interesting number is that the average number of categories per person shopping on Lazada has increased from 6 categories in 2021 to 7 in 2022.

In general, Lazada, like me and my staff, understand that in order to develop, it is necessary to focus on understanding customers, because now they are much more delicate and fastidious than before.

Deputy General Director of Lazada Vietnam In the first 2 hours of the Tet Shopping Festival we recorded a 97 fold increase in the department store industry compared to normal days | Internet

According to Reputa, recently Lazada has surpassed, holding the top 2 position on e-commerce platforms, but TikTok Shop has also grown strongly and is close to Lazada. Is the company concerned about this, sir?

According to reports from Google, Temasek and Bain & Company, the period from 2022 to 2025 the growth of the market is up to 37% (compared to only 25% in the same period).

The current economic situation is considered by many to be quite pessimistic, but I am quite optimistic about the future. The other figure shows that the e-commerce market still has a lot of unexplored potential. The shopping behavior of customers is now changing, enabling the penetration of e-commerce to increase. As such, the more parties involved in my opinion is a good thing, and at the same time beneficial for users.

Competition in the market is inevitable, there will always be new entrants in the market and there will be people leaving the game. But competition is also an opportunity to challenge businesses to constantly come up with new innovations in operation. I think each business, each participant in this market has a different business model, a different belief.

In general, 2023 is a bright spot for e-commerce in general and Lazada in particular. I see many opportunities, even the past 10 years are just the beginning of Lazada’s journey.

Video formats are considered a new trend, does Lazada intend to exploit this form in the future?

Need to understand, Video shopping is one of the methods to reach customers. In my opinion, there are many ways to reach customers, and with Lazada the method of reaching customers is part of the business problem.

The most important thing is still to understand customer needs, if understood, we will have many different approaches. At Lazada, we have built a consistent model, which can be called 360 degrees with many approaches such as livestream, gamification, super show… So, if there is any new customer approach, and in agreement with the company’s overall sustainable development strategy, we will be ready to implement. But if it’s the other way around, we definitely won’t invest.

Deputy General Director of Lazada Vietnam In the first 2 hours of the Tet Shopping Festival we recorded a 97 fold increase in the department store industry compared to normal days | Internet

Did you talk about the sustainable model that helps Lazada not be affected by the outside, can you share more specifically?thank you?

In a nutshell, Lazada’s sustainability model currently includes:

(i) The technology platform helps Lazada solve operational problems, if the market grows fast, Lazada’s operations can still be met.

(ii) The experience on the floor is very homogeneous, the products are selected and diversified, so that customers feel attached and want to come back for more

(iii) Logistics: Geographical coverage as well as wide service, helping to keep the number of partners as well as customers stable.

(iv) Financial model: shown through a long-term effective investment model, so while the market has been volatile in recent times, Lazada has not been affected much.

All of the above factors are built for a single purpose, which is to build an effective and sustainable e-commerce platform to be able to withstand market shocks. I realize that e-commerce in the near future will definitely have big changes.

Deputy General Director of Lazada Vietnam In the first 2 hours of the Tet Shopping Festival we recorded a 97 fold increase in the department store industry compared to normal days | Internet

With what Lazada has been doing, if asked if you are ready for 2023, what would you say?

I think the market in 2023 will continue to be more competitive, but from Lazada’s perspective, we are very ready. I have a feeling that what Lazada has invested and prepared for over the years is to be ready for today. Because, 2023 with Lazada in general and myself in particular, there are many bright spots, there are still many paths to explore.

Through this, I also want to send a message: “E-commerce in 2023 is predicted to face many challenges and difficulties. But actually there are many bright spots, that is the belief that Lazada and I see. Because, if it weren’t for the morning, we wouldn’t be where we are today.”

Thank you for sharing these!


Content Protection by DMCA.com
Back to top button