eCommerce/Lazada

Editorial staff

Lazada Thailand has outlined three key strategies to strengthen its ecosystem and drive sustainable growth in long term.

Varitha Kiatpinyochai, Lazada Thailand’s chief executive officer, said that the company has outlined three key strategies to strengthen its ecosystem: boosting shopper loyalty in the premium, fashion, and beauty segments, enhancing innovation to promote engagement; and offering tailored benefits and additional services for sellers.

These efforts aim to sustain long-term growth following the company’s first positive EBITDA across the region this year.

“For over 12 years, Lazada has driven innovation and economic growth in Southeast Asia, alongside developing a robust eCommerce business. This is reflected in Lazada Group’s positive EBITDA milestone across six countries in July 2024. This is testament to the success of our long-term strategy, focusing on operational efficiency and business stability over short-term goals, aiming for sustainable long-term growth,” Ms Varitha said.

Varitha Kiatpinyochai

The Thai eCommerce industry continues to show growth potential. In 2023, Thailand was the second-largest market in Southeast Asia after Indonesia, with a 20% growth rate from the previous year, surpassing the regional average.

The Thai eCommerce industry grew ahead an regional growth for two years and the market is expected to continues a double-digit growth for next two years because the market is more mature than other countries in the region, thanks to good logistic system, safety payment and customers access internet widely.

Lazada will continue to invest in Thailand, focusing on three strategic areas: shopper experience, innovation and technology, and supporting Thai businesses.

Enhancing personalized experiences

To cater to the growing female shopper base and the more dominant role of Gen Z consumers, Lazada will adopt a more “Customer-First” strategy, offering more personalized shopping experiences to increase brand loyalty and user stickiness. This will be achieved by assortment differentiation in the premium, fashion, and beauty categories, which are the platform’s strengths. In Thailand, LazMall has seen a remarkable seven-fold GMV uplift during the mega campaign, while LazBEAUTY membership has surpassed 1 million.

In the final quarter of 2024, Lazada will strengthen LazMall by expanding exclusive brand partnerships and targeting the luxury segment through LazMall Premium Brand. Additionally, LazLOOK will be emphasized as a shopping destination for trendy fashion items through weekly campaigns designed to excite and engage shoppers.

Investing in innovation and technology

Committed to making shopping more convenient and enjoyable, Lazada will leverage AI technology to drive innovation and new features. Gamification will remain a key strategy for shopper engagement. LazGame has been well-received in Thailand, with over 1 million daily users. LazGame users also spent three times longer on the application compared to platform average, and 82% has revisited the application daily.

Supporting Thai SMEs

With the goal to empower local sellers, Lazada has focused on developing eCommerce marketing solutions to uplift their operations, such as AI tools for image enhancement, product descriptions, and customer service, which have been shown to increase conversion rates by over 30%.

To support continuous growth for Thai sellers, Lazada will offer benefit programs tailored to various seller segments across their eCommerce journey.

Additionally, Lazada has continued to develop services beyond transactions to help sellers offer seamless offline integration, such as appliance installation, add-on protection service, and mobile trade-in.

Lazada Thailand has also established long-term collaborations with government agencies to enhance capabilities of Thai sellers and drive the country’s digital economy. On-going partnerships with government agencies include the Ministry of Commerce, the Ministry of Digital Economy and Society, the Ministry of Social Development and Human Security, the Tourism Authority of Thailand, and the Bangkok Metropolitan Administration.