We want to be "customer obsessed" rather than "competition obsessed", according to the priority outlined by Lazada Thailand chief executive Werapong Goo.
"Lazada has been around for an amazing 11 years and we look forward to the next decade. We have always pursued growth at our own pace, which has enabled us to weather industry headwinds and continue to steadily accelerate the advancement of e-commerce in Thailand," he said.
The Bangkok Post sat down with Mr Werapong ahead of the company's 11th anniversary, who shared his strategies for Lazada Thailand and his outlook on the e-commerce sector.
Thailand's e-commerce sector is expected to tally $32 billion in 2025, with a compound annual growth rate of 13% from 2022 to 2025.
"We've entered a new era where shopping journeys will become more elevated, and are no longer just about offering better deals. Lazada is working to drive deeper engagements with our existing customers and acquire new users," he said.
SUSTAINABLE E-COMMERCE
Mr Werapong, who assumed leadership of Lazada Thailand in July 2022, said the key to the company's continued leadership is in building a sustainable e-commerce ecosystem of buyers, brands and sellers.
"We are committed to building a high-quality ecosystem," he said.
"What this means is we want to provide differentiated experiences and value-added services to all customer segments, no matter where they are."
Amid fast-changing market conditions, Lazada is focused on maintaining its leadership, achieving 300 million shoppers across the region by 2030.
Meeting this goal requires offering more dynamic user experiences, improving customer care, and ensuring a safe and secure shopping platform for shoppers, brands and sellers alike, said Mr Werapong.
Lazada is also emphasising enhanced support for its brands and sellers, empowering them with technology and solutions to improve performance and accelerate business growth.
In the last year, the number of sellers on Lazada Thailand grew by 30%, of which more than 100,000 are active sellers making consistent sales.
INCREASED CONFIDENCE
"We're focused on enhancing shopping and selling experiences so buyers, brands and sellers feel confident transacting on our platform and engaging with Lazada in a meaningful way. This reflects our brand proposition of 'Add to Cart, Add to Life'," he said.
Lazada's recent e-commerce shopper report, which highlights insights from product discovery to delivery, sheds light on Thai consumer trends. Some 74% of Thais shop online once a month, and 25% do it several times a week, while 92% of shoppers purchased products they found using the search function.
The company's recent "3.3 mega sale" led to rising numbers of Thais purchasing higher-priced products such as smartphones, washing machines, refrigerators, air conditioners and smart TVs.
There was pent-up demand on Lazada Thailand's LazBeauty channel during the sale as consumers spent more time outside, with skincare orders accounting for 20% of beauty products sold. Health and beauty products emerged as the best-selling categories, with growth of 30% compared to normal days, followed by fashion items.
GROWING WITH THE CUSTOMER
"Our customers are at the core of everything we do, so we pay attention to the latest trends and ever-evolving needs of our buyers, brands and sellers. We continue to invest in technology and logistics, collaborating with strategic partners to address market conditions," said Mr Werapong.
"This allows us to create impactful, localised services and solutions to meet their daily lifestyle and business needs."
Although consumers have resumed their post-pandemic lifestyles, Lazada remains confident because buyers continue to purchase online, he said.
"Online retail business accounts for only 16% of Thailand's total retail business, with this figure projected to reach 45% in the future. There is still a large slice of the pie to be captured," said Mr Werapong.
Lazada is focused on creating innovative and engaging shopping journeys for buyers to close the gap between online and offline shopping for greater convenience and more seamless experiences, he said.
This includes enhanced services and features such as LazLive, an interactive live-streamed content series that generated nearly 300 million views from Thai shoppers last year.
Lazada also utilises artificial intelligence and augmented reality to offer "Virtual Try-On", which enables users to sample beauty products such as eye shadow, eyeliner, foundation and blush in real-time with true-to-life results, providing a customised and realistic virtual shopping experience.
The company also rolled out the LazMall Brand Membership programme, which allows shoppers to become exclusive members of their favorite LazMall shop, much like an offline store.
In addition, the LazMall Try & Buy option allows shoppers to try sample-sized products for free or at lower prices before committing to a purchase.
To cater to growing interest in fashion and beauty products on Lazada, the platform introduced its LazLook and LazBeauty channels for a more curated shopping experience.
For added value, Lazada now offers a gift-wrapping service with the option to include a special message at no additional cost, as well as installation services for electrical appliances at selected LazMall stores.
In an effort to reduce delivery times, Lazada Thailand successfully piloted next-day deliveries in Bangkok and the surrounding metropolitan area.
DIGITALISING SMALL ENTERPRISES
For brands and sellers, the digitalisation of businesses has become key to staying relevant as new consumption habits that emerged throughout the pandemic persist.
Brick-and-mortar sellers that expanded online reached new audiences across Thailand and gained new customers. One of the benefits of online expansion with Lazada is the opportunity to participate in the platform's mega-sale events.
Mega-sales generate a lot of hype among consumers, which benefits sellers, said Mr Werapong. Sellers are exposed to new customers through improved visibility of their stores and products, browsing the wide assortment available on Lazada.
"Our mission is to accelerate progress in Thailand through technology and commerce, removing barriers to doing business for micro, small and medium-sized enterprises [MSMEs]. We believe with the right technology and tools, anyone can sell online," he said.
Lazada is committed to helping sellers scale up their businesses by providing them financial services that are inclusive and accessible, such as its seller loans, with application available on Lazada's Seller Centre.
The company's preferred seller programme, LazPick, recognises trusted sellers with excellent reviews and rewards them with benefits such as a distinct badge on their storefronts that enables buyers to shop with greater confidence.
NURTURING NEXT-GENERATION TALENT
"Our people are the foundation of Lazada, and we believe in nurturing talents in a safe and engaging work environment that allows them to learn, grow and thrive," said Mr Werapong. "Amazing talent like our Lazadians create a positive impact in our community, and their efforts are a key driving force behind the long-term growth of the Thai e-commerce industry."
Diversity and inclusivity are important values at Lazada, with a regional workforce represented by more than 35 nationalities. Women make up 43% of its employee base, which grew by 18% the last two years.
"I am passionate about coaching and mentoring talents, and I do my best to empower Lazadians to find balance through a meaningful life and a purposeful career. When we uplift our employees and MSMEs in our local communities, we can bolster the country's economy, improve livelihoods and enable dreams," he said.