Page 70 - The EDIT | Q3 2017

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Thoughtleader
Now that Lazada is facing this type of international competition from the likes of Amazon, who are offering shorter delivery times among other benefits, Lazada will be forced to follow suit and find logistical solutions to maintain a stronghold in the SEA markets. As with any market competition, this will undoubtedly result in a better user experience with better service and more options for consumers. eRetailers will undoubtedly scramble to expand their product selections and ensure ultimate convenience for shoppers adding more promotions and offers for good measure.
This type of competition will also usher in a much stronger relationship between retailers and brands. eRetailers will now be forced to work even closer with brands to optimize their presence both on and off the retailer site. Brands should take advantage of the shift in dynamics and fully cultivate relationships with all the major retailers in the region to ensure
all eCommerce opportunities on the eRetailer are fully realized and utilized. This includes attention to categorization and taxonomy as well as branding opportunities such as “Shop-in-Shops”. Brands should also continue to optimize their omni-channel assets to ensure organic visibility and stronger conversion. Co-op partnerships are also a great way to direct shoppers to their products on the eRetailer and drive increased sales.
My 3 points of advice
• Ensurethatallassetsusedonretailers,such as images, description and reviews are fully optimized to ensure organic visibility and higher conversions.
• Exploreallpaid“onsite”opportunitiessuch as on-site search (when available), sponsored products and display banners.
• ExploreCo-opopportunitiesinpartnership with the retailer. This will allow you to run o site campaigns with the retailer, directing tra c to your pages on the eRetailer sites.
Logistics Challenge
The big question remains, can international companies like Amazon find real success in countries like Singapore? Although Amazon has adapted its strategy in different markets to tackle different challenges, Singapore and Southeast Asia could present a whole set of new challenges. With the Singapore Land Transport Authority making
it clear that taxis and private-hire cars cannot be used solely for the delivery of goods, Amazon will need to find other ways to tackle the high demand it will, no doubt, experience in the next coming months. If they are not able to resolve these issues and create a smoother user experience, customers may lose faith in the global giant, and Amazon may never take off in the region.
This regional eCommerce boom will also push entrepreneurs to look beyond physical retail for new opportunities. Following a similar pattern to the
US and China, startups in Southeast Asia will start moving into insurance, finance and healthcare. The drive is to use the internet and technology to create marketplaces or sell non-physical commodities such as loans, life insurance and data directly to consumers.
So what’s next?
In conclusion, it is an exciting time for eCommerce in APAC and specifically in the SEA region for both retailers, consumers and brands. Southeast Asia will be the next major boom market for eCommerce in Asia-Pacific (APAC), Marc Woo, Google’s head of eCommerce, travel, and financial services, told the Bangkok Post recently.
APAC accounted for 40% of global eCommerce sales in Q1 2017, but most of the eCommerce
sales went to larger or more mature markets in
the region, particularly China, but also Japan, Australia, South Korea, and India. This means that SEA is undoubtedly the next region to boom in the eCommerce arena, with exciting prospects and opportunities. If eRetailers can get the right logistics in place and create a seamless shopper experience, eCommerce will see an even bigger growth over the next few years.
THE EDIT ISSUE 7 | Q3 2017