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Lazada Case Study

Lazada is an e-commerce company founded in 2011 that operates marketplaces in Southeast Asia. It launched websites in Indonesia, Malaysia, the Philippines, Thailand and Vietnam in 2012. In 2013, it raised $100 million and launched mobile apps. By 2014, it had launched in Singapore and raised a total of $647 million. While its losses were $152.5 million in 2014, its losses as a percentage of gross merchandise volume decreased as sales grew from $95 million in 2013 to $384 million in 2014. Key factors in Lazada's success include advanced online marketing, offering quality products at best prices, fast and free delivery, and strong customer relationship management. Lessons from Lazada include utilizing various online marketing channels

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11K views

Lazada Case Study

Lazada is an e-commerce company founded in 2011 that operates marketplaces in Southeast Asia. It launched websites in Indonesia, Malaysia, the Philippines, Thailand and Vietnam in 2012. In 2013, it raised $100 million and launched mobile apps. By 2014, it had launched in Singapore and raised a total of $647 million. While its losses were $152.5 million in 2014, its losses as a percentage of gross merchandise volume decreased as sales grew from $95 million in 2013 to $384 million in 2014. Key factors in Lazada's success include advanced online marketing, offering quality products at best prices, fast and free delivery, and strong customer relationship management. Lessons from Lazada include utilizing various online marketing channels

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Student: c Vi t

ID: 1311250024
Class: TMAE306.3

LAZADA CASE STUDY


1. History and development
Lazada Group was founded in 2011 by Rocket Internet in Singapore with the intention of
establishing "the Amazon.com of Southeast Asia" to take advantage of the nascent online
consumer market and Amazon's weak presence there. Rocket is a German incubator that builds
companies that copy the business models of successful US tech companies.
Lazada's
e-commerce
websites soft
the Philippines, Thailand and Vietnam.

launched in

2012

in Indonesia, Malaysia,

In June 2013, Lazada announced it had raised an additional $100 million, and it launched mobile
applications for Android and iOS devices. In December 2013 it raised an additional $250 million
from Tesco PLC, Access Industries, and other existing investors.
In May 2014, Lazada launched in Singapore, its sixth country
In 2014, the total Lazada had raised to approximately $647 million. For 2014, Lazada's net
operating losses were $152.5 million on net revenues of $154.3 million. However its percentage
of losses relative to its Gross Merchandise Volume - the value of all the products sold through the
site - was smaller in 2014 than in 2013 due to growth in its GMV from $95 million in 2013 to
$384 million in 2014, driven by marketplace sales.

2. Key success factors of Lazada


Advance Online Marketing Strategy: Lazada heavily invests in Search Engine Optimization
(SEO), Search Engine Marketing (SEM), Social Media and Affiliate Program. Moreover, Lazada
Indonesia well adapted to the local marketing language for every promotion and campaign.
Those activities boost impression and attract people to visit Lazada. In addition, Lazada also has
mobile apps that aim to grab mobile consumer.
Finest Product with Best Price: In Lazada, they ensure all products carefully selected for the
quality, originality and no compromise to offer the best price. Even, there is a low price

guarantee that promise every product labeled best price is the cheapest in Indonesian market both
offline and online stores.
First Class Logistics, Free Shipping and Complete Payment Method: Lazada sets priority for
delivery of product to consumer should be on time provide hassle free shopping experience and
complete payment method. Lazada has its own courier and large partnership courier network that
able to cover many places and deliver on time. Its supported by excellent order fulfillment since
Lazada build a bigger warehouse to accommodate more inventory and accelerate order
processing.

Perfect Customer Relationship Management: In order to create sustainable competitive


advantage, Lazada retain their consumer in many ways like providing shopping voucher, email
newsletter, affiliate program and offline activity such as blogger gathering. They also actively
post article and information in their blo

3. Lessons from the success of Lazada


- Take advantages of advance online marketing: Google Search, Google Display Network,
Facebook, Criteo, MicroAd and any popular online marketing platform has Lazada a client. Once
the company has targeted potential customers, the extensive partner network will help them
reach potential customers quickly and easily.
- Focus properly on the image: Creating an attractive webpage with impressive image,
scientifically design, compelling editorial content and design various versions suitable for every
device.
- Offer attractive policy for customer: Good customer service, purchases with cash on delivery,
14 days free return and free shipping policy.

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