eCommerce businesses leveraging technology to win customers

James Dong, CEO of Lazada Group, stated at the LazMall 2023 Brand Future Forum held last month in Singapore that the LazMall, Lazada’s flagship virtual mall, has enabled businesses to deliver an increasingly better experience to customers, as reflected by the number of customers who use it.

From 2019 to 2022, monthly purchases on this platform climbed more than 3.5 times. He said an increasing number of respected partner businesses have shown high confidence in LazMall and participating in it.

James Dong, CEO of Lazada Group, speaks at the LazMall Brand Future Forum 2023 on August 31, 2023. Photo courtesy of Lazada Group

James said Lazada can support brands in digital transformation effectively and in the long term, after a decade investing in technology infrastructure.

He said Lazada has always considered e-commerce a marathon with a long-term perspective.

"The time has come for Southeast Asian e-commerce. And Lazada's objective in the future is to empower partner brands."

According to Google, Temasek, and Bain & Company's Southeast Asia Digital Economy Report 2022, the digital economy industry is expected to grow to US$330 billion by 2025 and is the primary driver of the region's economic growth.

The proportion of e-commerce in total retail sales in Southeast Asia has increased to 20% from 5% from 2016 to 2021.

According to experts, if businesses do not take advantage of the market's advantages and potential, they might find themselves as outsiders in the near future.

Many e-commerce platforms have released new applications and resources that help businesses and sellers effectively utilize technology, consequently enhancing their competitiveness.

Skin Test, for example, is a new tool recently released by Lazada on its eCommerce platform to assist customers in understanding their skin problems while offering appropriate purchasing suggestions to help solve those problems.

According to a Lazada representative, the application of Skin Test can be considered a "flyover" to help businesses increase competitiveness, bring their products to the right customer group, and from there, maximize the order conversion rate.

Lazada also promotes the application of AI and VR technology in the operating features of the platform, from the search stage to the delivery stage, to add more value to businesses.

Lazada's Skin Test tool has been launched in six Southeast Asian countries. Photo courtesy of Lazada Group

According to Howard Wang, Chief Technology Officer of Lazada Group, AI-powered search suggestions account for half of user transactions on the platform.

Lazada's advantage is that it possesses a rich data platform that can help brands target customers throughout their shopping journey.

Wang also said that quickly exploiting large data sources as well as applying modern technologies to e-commerce platforms is the key for businesses and sellers to break through in the business race.

Howard Wang (R), Chief Technology Officer of of Lazada Group, shared at the LazMall Brand Future Forum 2023. Photo courtesy of Lazada