The boom in eCommerce arena has gradually engulfed most of the retail sectors in the world. It has not only created millions of jobs, but has also eased the consumer shopping experience all in all. Besides putting several startups on the global platform, it has contributed largely in escalating the economic growth of various countries.
World Trade Organization (WTO) had said that eCcommerce can play a pivotal role in fostering growth and escalating living standards, particularly for developing countries, which this seems apt as per the current growth scenario of eCommerce.
Founded four years ago, Lazada Vietnam has gradually soared to become one of the biggest online shopping sites in Vietnam, and today, it stands amidst the top few eCommerce giants in the Southeast Asia.
Lazada recently partnered with 40 Vietnamese retailers to further augment its reach and expand the business.
In an exclusive interaction with Retail360Asia Bureau, Alexandre Dardy, CEO, Lazada Vietnam, speaks at large about of the partnership and growing prospects of eCommerce in Vietnam. Below are the excerpts of the interview…
Going by the current scenario, how do see the future of eCommerce?
Vietnam is one of the top three countries with the highest rate of growth of internet and mobile phone in the region. With more than four million people using internet daily, this number offers great potential for online shopping development. Vietnamese are getting digitally sound, even in the rural parts of the country. Constant innovation, proliferation of affordable smartphones, coupled with increased internet speed, has largely propelled the market growth. As the eCommerce landscape has taken shape over the past couple of years, the ecosystem for supporting services have developed and are getting more matured as well.
What are you looking at through this partnership?
As the pioneer and the biggest player in the market, we take the responsibility to build up the whole industry. It is a gigantic task and Lazada does not try to do it alone. E-Commerce will work if and only if the retail actors, i.e Retailers and Brands aim as high and push as hard as eCommerce Players do. And we are to enable this through this initiative
Can you tell us some of the famous names in the partners?
The list of famous names include Dien May Cho Lon, one of the top 3 Electronic Retailers in the South. Their counterparts in the North — Tran Anh and Home Center, are also in the list. So Kim, the sole distributor of underwear brands like Vera, Jockey, J.Buss and Wow. Two popular names in Moms & Kids sector – Kid Plaza and Tuticare are also there in the list.
How do you think this partnership will enable Lazada to expand its reach?
The main hurdle of eCommerce in Vietnam is Product Quality. A market survey conducted by Lazada in March 2016 with 486 online shoppers revealed that up to 82% having this concern. This partnership is one strategic movement of Lazada in order to build trust and gain confidence of Vietnamese shoppers in E-commerce. What shoppers could buy offline, now they can buy it online. They trust Vietnam leading retailers’ “brick” stores, now they would trust their “click” ones. They do not shop from us, they shop from their favorite retailers through our platform
What enticed you to initiate this pact?
To date, no one has decoded exactly how, when and why the modern shoppers makes a purchase. What we do know though is that a lot of shoppers do not want to shop exclusively through a single medium. Shoppers buy in store, online and on marketplaces. It is important for retailers to list their product whenever consumers are actually spending their time. Lazada is a marketplace platform. We intend to give retailers quicker, easier access to online market. We customize our condition for them to embrace eCommerce. We want them to understand we are their partner, not a competitor. Lazada is an optimal option to help Retailers executing their omni-channel retail initiatives.
What is Lazada’s market share in Vietnam at the moment?
Lazada Vietnam maintains its market leader position. It is dominantly popular shopping site in Vietnam with over 24million access per month
How much growth percentage are you expecting through this partnership?
It is too soon to give a number at this stage. To give you a perspective, after 3 months listed on our platform, Kids Plaza – one of our key strategic partner has shared that their revenue is tripled month on month. We think this growth rate is a very positive sign.
Lazada’s plan seems achievable when almost 50 per cent of Vietnam’s 93 million population are using the internet. Research predicts that by 2020, 30 per cent of the population will regularly buy goods and services online, with an average spend of US$350 per year. This will take online retail sales to $10 billion.