Effectiveness of Lazadas marketing

strategy in Southeast Asia

Although Lazada is widely criticized by some entrepreneurs because of uncreative

strategies implement viable business model in unreclaimed regions, it is
undeniable that the milestones it made are really surprising and exciting.
Moreover, despite the fact that Lazada is dubbed as a notorious company, numerous
venture capitalists continue investing rounds of funding for regional expansion,
setting up more and more subsidiaries in Southeast Asia. With the total amount of
funding it raised, US$ 647 million, needless to say, Lazada is one of the iconic
unicorn in Southeast Asian startup community.

Hence, I believe it would be helpful to write an analysis report about Lazada based on
the preliminary data which is available on the internet.

Source: SimilarWEb ; sorted by RTB-SEA

First of all, lets get started with the performance of website across six countries --
Thailand, Vietnam, Malaysia, Philippine, Singapore and Indonesia, respectively.

Bounce rate, referring to user behavior that click the leave button without taking a
close look, in these countries is not as good as an E-Commerce leader shall be. The
numbers in Vietnam, Philippine and Indonesia, most notably, exceed 50%.

In addition, Lazadas performance, whichever the variable is, in Vietnam is relatively

awful as compared to other five. Lazada should put more effort in Vietnam and
considered performance in Vietnam as its corporate priority in terms of website
optimization. Next, the rising concern would point to Philippine when combining the
Total Visit, pi-chart , together with other three bar-chart variables. Even though
Lazadas website in Philippine takes roughly 36% of Total Visit, it does not generate
anticipated results with respect to website acceptance.

Based on the aforementioned primary analyses , the poor and undesirable numbers
manifest the huge improvement in Lazadas website in Vietnam and Philippine. The
loss in revenue is expected to be higher in these two countries if Lazada can not fix
this urgent issue.

The best performance (see the bar-chart only) among all, on the other hand,
happened in Malaysia with higher website acceptance. Malaysian, unlike other
Southeast Asian, are more willing to spend time browsing and shopping, meaning
Lazadas localization strategies in Malaysia is doing relatively well.

Source: SimilarWeb; sorted by RTB-SEA

When we move on to the Traffic Source chart, paid Ads (see Display) is one of the
main marketing channels in all Southeast Asia, except for Singapore, which shows
amazing result in Organic Search.

In addition, based on the previous performance in each individual country, one can
claim that Lazada performs the best in Malaysia and Thailand. The budget allocated
for digital marketing campaigns turned out very outstanding, receiving effective
impression with fairly good result in Time On Site and Page Views. Indisputably, the
spending went effectively to the right visitors through accurate channels, generating
amazing outcomes.

At the same time, the data in Traffic Source also manifest that Lazadas strategies for
Philippine is the worst -- the paid Ads didnt receive expected result
proportionally. Even though Direct traffic doesnt look terrible, it could be attributed
to the lower language barrier and familiarity with the searching box.

The data in Singapore section, to ones surprise, looks subtly strange because of the
unusually outstanding Organic Search. The consequence, perhaps, is related to the
timing Lazada entered Singapore -- Lazada started operation since 2014.
Singaporean gets acquainted well with Lazada earlier and, therefore, it is
unnecessary to spend much on paid Ads, which is the reason why the ratio is
significantly lower than rest of other five.

Source : RTB-SEA

Finally, from the statistics above, one can understand Lazadas penetration in
Southeast Asia. Insignificant as the figures like Google and Facebook are, Lazada has
garnered a striking position in the competitive online community with nearly 1.7 out
of 100 people reaching Lazada daily. With logistic and mobile infrastructures
gradually being set up, these figures are thought higher and could even become the
landing page of every internet user in the coming future.