Online beauty and fashion products and online grocery shopping are recording growth, while awareness of artificial intelligence (AI) and AI adoption among consumers have been increasing, according to insights presented by Lazada.
According to the annual data released by Lazada, as consumers have become increasingly comfortable with online shopping, there has been a seismic shift in terms of consumer behaviour, particularly in the beauty industry.
By this year, a significant 56.7% of total beauty and personal care revenue in Thailand is projected to be generated via online channels, signalling explosive growth in e-commerce within this sector.
According to Kantar's "Beauty Pulse: Channel Trends in Thailand", nearly half (47.1%) of beauty shoppers now opt for online purchases. This trend is further solidified by the fact that 70% of these shoppers are repeat customers.
This mirrors data from Lazada with beauty emerging as a dominant force in 2024.
This trend is exemplified by the outstanding performance of specific campaigns and products, fuelled by innovative technologies such as virtual try-on and skin tests.
On the fashion scene, items such as women's clothing, handbags and hair accessories recently enjoyed significant sales volume. Thai social media-darling fashion brands are thriving on e-commerce platforms, with a nearly 50% surge in fourth quarter sales on Lazada.
Consumer behaviour has shifted significantly towards online grocery shopping, accelerated by the Covid-19 pandemic. Lazada's recent launch of LazMart in Thailand represents an example of this trend.
By positioning itself as an online supermarket, LazMart is capitalising on the burgeoning e-grocery market.
According to Lazada, the rapid growth of online grocery shopping, driven by consumer demand for convenience and flexibility, is clear as 44% of consumers now order groceries online every week, while Lazada has seen double-digit growth in grocery orders throughout 2024, with a significant uptick during festive seasons.
The integration of AI is reshaping the e-commerce landscape. A recent white paper by Lazada in collaboration with Kantar titled "Artificial Intelligence Adoption in ECommerce in Southeast Asia" highlights the growing awareness and adoption of AI among consumers.
A significant majority of respondents (88%) make purchasing decisions using AI-powered product recommendations.
Moreover, consumers are increasingly confident in AI-driven e-commerce. A remarkable 92% trust AI-powered platforms to deliver tailored recommendations and 90% rely on AI-generated product summaries for accurate information.
Lazada recently launched AI Lazzie, a virtual personal shopping assistant, in the region. The company says it empowers consumers with personalised recommendations, bundled deals and AI-powered smart reviews, driving informed purchasing decisions and boosting sales for businesses.
AI Lazzie is currently live in English in Singapore, Malaysia, the Philippines and Indonesia.
