SINGAPORE, Sept 1 ― E-commerce user penetration is expected to exceed 63 per cent in South-east Asia (SEA) by 2025, which means about 413 million users, as the sector sees more dynamic shopping online, said Lazada group chief executive officer James Dong.
The current e-commerce user penetration rate is 53 per cent.
He said this shift away from commonly used search engines highlights the importance of e-commerce marketing solutions and the digitalisation of businesses in remaining resilient and relevant amid rising global interest rates and inflationary pressures.
“The pandemic and national lockdowns across the globe saw a flood of consumers and retailers online, leading to unprecedented e-commerce growth over the last two years.
“E-commerce growth is now normalising and the habits developed during the pandemic have stayed.
“E-commerce marketplaces like Lazada have surpassed social media and search engines to become the discovery channel of choice,” he said in his keynote address at LazMall Brands Future Forum (BFF) here today.
He said the behaviour and mindset change during the past two years have driven more high-quality consumers looking to go 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,” he added.
He said from international brands to local small and medium enterprises (SMEs), LazMall brand partners have been leveraging on campaigns and tapping into tools such as virtual-try-on and gamification to elevate the online shopping experience for many consumers.
Dong said LEGO has grown 15 times faster on LazMall than the average growth of the region’s toy industry in 2021.
Today, Lazada released its Lazada Sponsored Solutions’ (LSS) report, “Transforming Southeast Asia: From Discovery to Delivery.”
The LSS report showed that search-led 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.
Meanwhile, Lazada Group chief business officer James Chang said LazMall remains a key offering that Lazada will continue to grow and invest in to uplift customer experience, engagement, and retention.
Even as consumers resume their post-pandemic lifestyles, Chang revealed that Lazada 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 moving forward its efforts will centre around engaging and retaining customers beyond price and promotion,” he said. ― Bernama
