Southeast Asia’s largest ecommerce site Lazada is rolling out a series of initiatives to expand its capacity in the region, with help from online grocer RedMart that it recently acquired.
Successful 12.12 sales event
Lazada Group’s Online Revolution, also known as 12.12, has again proven to be the biggest online shopping event in Southeast Asia, ringing up US$40.5 million in sales.
With the theme “Brands for All”, the 12.12 event featured more than 500,000 offers and flash sales from more than 1,000 brands and 55,000 sellers. About 60% of the gross merchandise value (GMV) of the December 12 event came from mobile.
Regional and logistics network expansion
Lazada covers six countries - Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. It also runs 12 warehouses and 92 distribution centres from which it conveys goods directly to buyers.
It’s expanding its delivery network within the region and beyond, via partners in China and Korea. It’s on the prowl for investments and acquisitions to shore up its supply chain. It counts Kerry Logistics Network Ltd. and DHL in Thailand and JNE Express in Indonesia among its more than 100 logistics partners. In recent months, it’s also teamed up with China’s state postal service and CJ Korea Express Corp. In September, Lazada’s volume in Indonesia grew 2.5 times from a year ago.
RedMart boosts Lazada’s online grocery capacity
Lazada intends to delve deeper into online groceries in 2017, a notoriously difficult market it has entered via buying RedMart last month. Now that RedMart has given it a foothold in Singapore, Lazada also plans to begin selling groceries online in the capital cities of Malaysia, Indonesia or Thailand, as early as the second half of 2017.
RedMart has more than 150 trucks ferrying an average of 22 food items from chocolate to frozen dumplings per order. It plans to cut delivery times to four to six hours (from mostly next-day) by the end of the first half of 2017. By the second half, the company will offer an express service, shipping groceries within an hour or two of ordering online.
Want to know more about the latest strategy updates from Lazada and RedMart? Attend the IGD RedMart Trade Briefing in Singapore...