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Lazada’s first regional consumer study, conducted with Milieu Insight, for Lazada’s 10th anniversary, identifies the current online shopping behavior of 6,000 consumers
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73% identify shopping online as an integral part of everyday life, with almost half (46%) shopping online at least once a week
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A large assortment, low prices and the convenience of delivery are a major attraction of digital commerce
SINGAPORE, March 22, 2022 /PRNewswire/ — South East Asia Leading e-commerce platform, Lazada, today announced the results of a region-wide consumer study in conjunction with Milieu Insight which found that a large number of shoppers (73%) now consider online shopping as an integral part of everyday life, with 67% identifying eCommerce Mega Campaigns* as a key factor in shaping consumer buying behavior. Nearly 60% of consumers also welcomed online shopping into their daily lives less than two years ago.
As a digital commerce industry pioneer celebrating 10 years in the region this month, Lazada has shaped and driven shopping behavior, with over 130 million annual active consumers in the region, driving 86% of digital consumers who shopped online at least once a month.
Low prices, affordable shipping, ease of finding and convenience are the main reasons Southeast Asians shop online, with Singapore showing the strongest preference for home delivery. The availability of different e-commerce payment options was also highlighted across all markets, with more than half of online shoppers preferring to pay cash on delivery.
“Digital commerce has changed the way people shop over the past decade, especially over the past two years as the pandemic has accelerated the shift to online retail. These changes are having a lasting effect, especially in emerging markets. A study shows that the mega-campaigns, launched by Lazada in South East Asia a few years ago, still matter to the consumer. They look forward to the offers and shoppertainment features that come with every campaign,” says James ChangEntrepreneur, Lazada Group.
“We have partnered with Milieu Insight to better understand the key drivers of e-commerce in South East Asia and the results have helped solidify our trajectory, while providing businesses and sellers with valuable market insights to guide critical business decisions, which helps them determine their growth and direction in this digital economy. »
Evolution of the buying journey driven by digital commerce
“The digitization of shopping has changed consumer behaviors at different touch points, such as the shorter journey from awareness to purchase and the limited senses that are engaged via online shopping. It is therefore important that brands and sellers understand their target consumers, and the new online shopping journey, to give their consumers a compelling reason to buy and stay competitive. The Lazada consumer research marks the first regional study to understand the current shopping behavior and is a good way to understand the change in shopping habits“, said Dr. Li Xiuping, Deputy Academic Director of NUS EMBA-C, Associate Professor of Marketing, national university of singapore. She did not participate in the investigation.
“The online shopping landscape has evolved significantly over the past two years with South East Asia lead this change on a global scale. That’s why we wanted to identify the new behaviors and current feelings of online shoppers in South East Asia. Through this partnership with Lazada, we have gathered fundamental data on their 6 regional markets, helping them understand the intricacies of each. As Lazada continues to shape the thriving economy of modern e-commerce, this insight is intended to equip them to formulate the most effective consumer outreach strategies in today’s environment,” says Gerald AngPresident and CEO, Milieu Insight.
Regional Consumer Research Highlights
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Consumers continue to actively participate in mega campaigns such as 11.11 and 12.12 sales, with 67% of digital consumers making a purchase during a mega campaign.
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Low prices (45%) and affordable delivery costs (45%) top the list of reasons people buy online, followed closely by ease of finding (43%) and convenience (43%). ). Singapore (55%), Thailand (48%) and The Philippines (49%) show a strong preference for items to be delivered directly to them.
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Reviews and ratings are essential for a positive shopping experience, especially for online shoppers of Singapore (61%) and Thailand (66%). Buying genuine products is one of the top reasons to shop online in Singapore (54%) and Vietnam (53%) while the variety of payment options available is the main reason for Indonesia (54%). In markets like Singapore (53%) and Malaysia (45%), secure payment options are also a key criterion.
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Consumers are actively choosing to purchase their items through digital channels, with 65% saying that when they shop online they already know what they are going to buy. To further enhance the experience, 29% of respondents report increased engagement with the platform through additional browsing for the best deals and exploring the platform for additional items before closing the sale.
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As we enter the recovery phase, the lasting influences of the pandemic on wellbeing appear to persist with 58% of respondents investing in themselves by spending in the Health and Beauty categories. Reinforce that personal wellness is here to stay as consumers rethink the approach to wellness and self-care.
As a leader and pioneer in Shoppertainment, Lazada’s efforts have proven instrumental in establishing new consumer shopping habits, as three in five shoppers (63%) agree that Lazada makes shopping fun.
Wide product availability and an emphasis on genuine product reviews on the platform have also conditioned shoppers to rely on peer reviews. One in two shoppers (54%) said reviews make the shopping experience positive. Additionally, half (50%) of respondents said they leave product reviews after purchase, and one in three (32%) said reviews are one of the top 3 reasons they prefer buy online. The culture of engaging buyers by leaving authentic reviews helps build trust and has a significant influence on the final purchase decision.
Singapore-specific results
Digital commerce has become an everyday convenience in Singapore. 70% of respondents consider online shopping essential to their routines, and 96% indicate that it is now important that they can buy what they need through digital channels.
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46% said online shopping has become important to them over the past 2 years (probably due to Covid-19). 85% said they now spend more online than in-store.
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Buyers are looking for a market driven by a trusted experience and products that offer a worry-free transaction. This is illustrated by the strong preference for reviews (61%), genuine products (54%), secure payment options (53%).
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Singapore Buyers increasingly value peer ratings and reviews (61%) and secure payment options (53%) when it comes to platform features. This suggests that trust remains one of the most important considerations when choosing a platform to make a purchase.
Highlights from other countries
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Markets with more mobile-first approaches lead the region with payments via e-wallets, with Malaysia leading at 63%, followed by Indonesia (55%) and Philippines (54%).
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The majority of markets have fully embraced cross-border shopping with 79% of respondents in Singapore having no preference for local or global brands, followed by 58% in Thailand and 56% in Malaysia. Buyers in Vietnam, Indonesia and The Philippines have a preference for local brands, with one in two (52%) Vietnamese respondents showing a strong preference for buying local brands, followed by Philippines (41%) and Indonesia (36%).
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Over 90% of Thai women aged 16-24 surveyed say they have been spending more online since the pandemic, and more than half are willing to expect a reduction.
Methodology
Milieu Insight surveyed 6,000 online shoppers (N=1,000 from each country) about their current and future shopping behaviors and attitudes. It was conducted in January 2022 in 6 markets including Singapore, Malaysia, Thailand, Indonesia, Vietnam and The Philippines.
To view an infographic of the results, please click here.
About Lazada Group
Founded in 2012, Lazada Group is the leading e-commerce platform in South East Asia. We are accelerating progress in Indonesia, Malaysia, The Philippines, Singapore, Thailand and Vietnam through trade and technology. With the largest logistics and payment networks in the region, Lazada is part of the daily lives of our consumers in the region and we aim to serve 300 million customers by 2030. As of 2016, Lazada is the South East Asia Alibaba Group’s flagship platform powered by its world-class technology infrastructure.
SOURCE Lazada Group
