Lazada leads As Top E-Commerce Player

(Marketingmagazine.com.my) – Lazada Group has reported a total of US$1.3 billion (RM5.34 billion) of annualised Gross Merchandise Value (GMV) in 2015 across its six markets in Southeast Asia, making it the region’s largest e-commerce player.

GMV is the total dollar value of merchandise sold on an online platform, which may indicate but does not necessarily directly relate to revenue.

The Rocket Internet company runs a network of e-commerce portals in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Lazada Malaysia CEO Hans-Peter Ressel (picture) told a media briefing recently, “Mobile contribution to GMV in Malaysia hit 55 per cent at the end of 2015 as more customers embraced shopping on their mobile devices. Lazada’s app on the Android and iOS platforms has garnered 30 million downloads across the region; in Malaysia alone, the app has over 4 million downloads.”

Lazada Malaysia itself now has over 800 employees, over 10,000 sellers on its marketplace, five million SKUs (stock keeping units), and two warehouses — one in Subang Jaya, Selangor and the other in Kuching, Sarawak.

“2015 was a year for us to increase the gap between us and other e-commerce players in Malaysia,” Ressel added. Malaysian buying habits, GST hits In 2015, the top five products that Malaysians bought from Lazada were diapers, power banks, blenders, food containers, and USB drives. Our lifestyle category is becoming more predominant among our customers,” said Ressel, adding that the home and living category, together with the home appliances category, contributed to at least 40 per cent of the business.

He however admitted that the implementation of the Goods and Services Tax (GST) in Malaysia last April did have an impact on Lazada’s sales.

“If we compare orders placed before and after GST was implemented, the difference in amount spent is actually 50 per cent — which means people are spending 50 per cent less on an order,” he said. “But the good news is that they come back more often.

Lazada Malaysia CMO Andrew Gnananantham said that the company will continue to push its value propositions: Accessibility, affordability and convenience.

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