With the popularity of the Southeast Asian market and the blessing of Ali, Lazada Undoubtedly, it is a big "pet" of Chinese sellers going to sea today.
According to Ali's 2020 Q1 financial report, April June Lazada Orders grew by more than 100% year on year. After strengthening the third-party platform business, management team and technical infrastructure, Lazada achieved a year-on-year order growth of more than 100% for the third consecutive quarter.
Recently, Xi Yu, senior vice president of cross-border investment promotion and ecology of Lazada, comprehensively interpreted six new upgrading policies of Lazada in terms of platform policies, logistics and warehousing at the first cross-border e-commerce platform summit forum in 2019 of "Easy Cross border Access to the World".
following For Arrangement of speech transcripts:
Lazada To Zanda , founded in 2012, headquartered in Singapore. In 2016, Alibaba It started to invest in Lazada, increased its capital and took full control in 2017, and upgraded and empowered Lazada in platform, products, logistics and other aspects.
Before Lazada entered the e-commerce market, or before the establishment of Lazada, the e-commerce environment in the whole Southeast Asian market was in its infancy, and there were many objective realities and challenges: For example, the logistics infrastructure is underdeveloped, the credit payment system is imperfect, the commodity category is available, and the Internet access rate is low. In that environment, Lazada took the lead in introducing logistics guarantee Cash on Delivery , and introduce international brands and promote mobile APP.
Lazada's mission is to promote the growth of Southeast Asia and create a dynamic market through the development of business and technology. Through seven years of efforts, our price and volume soared at the same time on Lazada's birthday promotion this year. The sales volume on that day was 15 times that on weekdays, and GMV was twice that of last year's "Double Twelfth Promotion".
At present, Lazada Global, the cross-border business of Lazada, is the fastest growing segment among the three businesses of Lazada, with a growth rate of more than 100% for five consecutive years. It now covers 15 categories, including footwear, outdoor and 3C accessories, which are more popular in Southeast Asia.
At the beginning of Lazada's cross-border business, in order to facilitate domestic merchants to go to sea, Lazada provided a series of comprehensive services and support for sellers: Including a contract that can access the markets of six countries, and a upload that can reach the websites of six countries. In terms of logistics, as long as the seller delivers the goods to the warehouse in Yiwu or Shenzhen, Lazada can solve all the back-end problems and deliver the goods to consumers in six countries. In addition, Lazada University also provides a complete training system and courses for businesses at different stages.
Many businesses ask whether it is too late to join Lazada now. I think it's never too late. Whether big sellers or small and medium-sized merchants, as long as your products are competitive and your operations can keep up with the pace of the platform, I believe there are opportunities in Lazada platform.
Borrow to Taobao? Six major policy upgrades
In 2019, in view of the many pain points encountered by cross-border businesses in cross-border business, Lazada made a business strategy and upgrading strategy in six dimensions for the overall development future of the platform.
The first upgrade is global selection, Global Collection， We hope to make good products, good business and good operation stand out on the platform. Through more reasonable platform support and brand promotion, consumers can finally get a faster, cheaper and more secure online shopping experience.
The second upgrade is to enable businesses to operate in depth. For a long time, raising and cultivating businesses has been the top priority of Lazada's cross-border businesses. Focusing on the pain points of cross-border businesses in incubation and growth, Lazada has provided complete services and support for different businesses in four aspects: incubation and growth, platform tools, training guidance and service support. It hopes that businesses can quickly grow and incubate after entering Lazada and become big sellers.
The third upgrade is to build a cross-border service ecosystem. Cross border business is a very complex link. Lazada has helped businesses solve some problems such as Cross border payment Difficulties in foreign exchange settlement and logistics business. However, six countries in Southeast Asia all have their own local languages, cultures, policies and regulations, and their own Internet environment. In response to these challenges, Lazada also launched a cross-border ecosystem service system, which received applications from nearly 100 service providers less than a month after its launch last September. This year, in addition to continuing to cultivate and incubate service providers, we will focus on vertical service providers, such as language translation, traffic operation and KOL, to provide full link support for cross-border businesses.
The fourth upgrading method is the branding of cross-border merchants. I believe that all cross-border businesses have a brand dream. In the past decade, with the rapid development of domestic Tmall and Taobao, a large number of Taobao brands have emerged. We also hope to replicate this miracle in Southeast Asia. From the end of last year to the beginning of this year, we launched Club300+, and each of the six countries in Southeast Asia invited 300 brands to join LazMall , to enjoy the same traffic and opportunities as international brands. I hope that more businesses will join Club300+activities, and then we can make 300 to 500 and 1000 to 1000.
The fifth upgrade is to deepen the logistics experience. The specific work should be done in four aspects: Speed up reconciliation and claim settlement, and improve the timeliness and tracking of reverse logistics; The status is visible, and the processing time of abnormal orders is accelerated, reaching 72 hours in six countries; At the same time, Brasilia Overseas warehouse Set up in Thailand, and launched a 2.0 packet free service in Singapore; Finally, it will continue to polish ocean shipping Related services.
The last upgrade is the incremental product system upgrade. After Lazada's merchants enter the platform, the most commonly used platform is the merchant platform. We have also been trying to optimize and improve some basic experiences of the platform. For example, we have foreign exchange locking tools and dollar wallets, which can help merchants lock the exchange in advance when the exchange rate fluctuates and avoid exchange rate losses. In addition, on the platform, the account number of six countries is unified, the store decoration is unified, and the operation interface is in Chinese.
In terms of traffic, around the global selection project, more businesses can get some incremental traffic channels in Taobao Selection. For example, store recommendation flow, home page recommendation flow, and special session promotion flow support. In terms of marketing and promotion, in addition to discounts, there is also packaging. On the basis of discounts, stepped prices and cross category packaging are introduced Promotion And store operation. Finally, in terms of shipping, two important modes will be unlocked, one is overseas warehouse, and the other is direct shipping mode.
The above is Lazada's overall strategy presentation in six dimensions and some of our upgrading methods in cross-border area.
Southeast Asia market under the "spotlight"
When talking about the new economy in Asia in the past, you may think of China and India. At present, Southeast Asia under the spotlight is ushering in an era of rapid development of the Internet and blowout of new opportunities. According to Google's latest data, Southeast Asia's Internet population is the third largest region in the world, and its online users have exceeded the population of the United States.
At present, Southeast Asia has a population of 650 million, ranking the third in the world. The GDP of the whole Southeast Asia region is 2.7 trillion, ranking the fourth in the world. The average GDP growth rate is 5.2%, and the per capita GDP is within the range of 2800-3000 dollars. The population is very young. About 45% of the people are between the ages of 20 and 50.
In addition, driven by the "Belt and Road" initiative, the cumulative infrastructure investment in Southeast Asia has exceeded US $25 billion. In 2015, the online retail scale of Southeast Asian countries was US $5.5 billion, reaching US $23.3 billion in 2018, which has roughly quadrupled in four years. It is estimated that this figure will exceed US $100 billion by 2025.
The Internet has developed very fast in Southeast Asia. At present, the penetration rate of the Internet has reached 55%. In the 10 years from 2005 to 2015, the Internet has developed very fast in Southeast Asia. For example, in 2005, the Internet population in Southeast Asia was about 60 million, and by 2015, it would have grown to nearly 250 million, an increase of nearly 4.2 times. In China in the same period, the number of users was close to 300 million in 2005 and 800 million in 2015, about 2.7 times the growth rate. The development of Southeast Asia is very similar to that of China in the past 10 years. Its development theme is vigorous and rapid blowout development.
From the data point of view, the per capita online time in Southeast Asia is 5.5 hours ahead of that in China. Taking Indonesia, Thailand and Malaysia as examples, the per capita online time is 8 or 9 hours, and the Philippines is more than 10 hours, which can rank among the top ten in the world. Therefore, it can be said that Southeast Asian people spend half of their time on the Internet every day.
So, what do Southeast Asian users usually do online? The answer is social networking and shopping. Southeast Asia is the most popular region of mobile Internet or social media in the world. with Facebook For example, among the top 10 Facebook users in the world, Southeast Asia accounts for three, of which Indonesia has 130 million Facebook users, ranking third in the world.
In addition, Southeast Asian people also like taking selfies, socializing, and online shopping. 60% of users have online shopping experience, and 30% of users complete it through social media. It can be seen that the Southeast Asian market has a good accumulation of e-commerce atmosphere and user base under the cultivation of social media.
At present, the per capita income of six countries in Southeast Asia is also very high. Take Singapore as an example. Its per capita GDP is 57000 US dollars, which is a standard developed country; Malaysia and Thailand, with per capita GDP of US $6000-9000, are the standard middle-income countries; Indonesia, the Philippines, and Vietnam are 3300-3700, low - and middle-income countries. Therefore, Xinmatai also has a good foundation and preparation for e-commerce shopping. India, Africa and Vietnam will enter a period of rapid development in the next five years depending on a strong population base and Internet user base.
