E-COMMERCE platform Lazada Philippines said it is expecting to sustain double-digit sales growth this year as it pursues a strategy of tailored deals for a growing customer base.
“We continue to enjoy double-digit growth, and the aim is (to sustain that). Our proposition: we say to the buyers, we are trying to deliver always better, but even internally that is what we are pushing for,” according to Alvin Michael L. Ching, head of seller operations at Lazada.
“While I can’t detail exactly what we are doing in terms of the operation, there is a lot of work that will probably be very invisible, but it is meant really to be able to push better deals and better assortment to the buyers,” he added.
He said that the goal is to push the right deals and make smarter recommendations.
“We expect those to help us sustain the growth because it is hard to sustain growth if it is just about discounts and promotions,” he said.
“At some point it is going to be a price war, which at some point is not going to be sustainable. So we are going towards a different path of improving how we respond to the needs of customers,” he added.
He said that Lazada’s strategy involves influencing the algorithm to respond better to users, which the company expects to translate into more sales and buyers.
According to Mr. Ching, the platform posted growth in electronics, especially for high average selling price items.
“We also have beauty, fashion, groceries, and the mother and baby categories. And if you think about those, these are women’s categories,” he said.
“There is a big push towards categories because we are betting on that part of our demographic to be able to drive the sales, not just now but in the future,” he added.
This year, he said the growth drivers will also include product assortment and artificial intelligence (AI).
“We are very deliberate in terms of bringing in quality assortment. We want to be able to have everything under the sun in Lazada while being very specific in terms of the quality of this assortment,” he said.
“What we want to be able to do is actually have sellers who bring in things that we don’t have in the platform,” he added.
He said that Lazada has also invested in AI to recommend items to the buyers via search or via LazzieChat.
“There are a lot of resources that are going into it (AI). And I am not just talking about Lazada Philippines but, in general, the Lazada group. This involves, I guess, millions of dollars of investment in trying to make this happen,” he added.
He said that there is a push to focus on LazMall.
“LazMall has always been a strength of Lazada, and it is very driven by two main things: electronics and branded fashion. These ones do drive the sales,” he said.
This month, Lazada will offer up to 90% off branded deals, up to P2,000 off campaign vouchers, and 100% free shipping with no minimum spend as part of its Birthday Blowout Sale.
The sale will run between March 24 and 29 to celebrate Lazada’s 13th year in the Philippines.
“We are extremely grateful for the continued trust and support of our community. Lazada’s journey has been fueled by a commitment to helping entrepreneurs, brands, and partners thrive in the online marketplace,” according to Carlos Barrera, chief executive officer of Lazada Philippines.
“As we celebrate this year’s Birthday Blowout Sale to thank shoppers nationwide for making Lazada their go-to online shopping destination, we’re even more determined to continue providing everyone with exceptional experiences,” he added. — Justine Irish D. Tabile