Lazada's New AI Strategy

In an exciting new strategy, Lazada Thailand is ramping up its investment in artificial intelligence (AI) to tailor shopping experiences specifically for female Gen Z consumers. The company aims to not only enhance personalisation but also revamp its Live selling feature, ensuring it stays at the cutting edge of Thailand’s booming e-commerce market.

Empowering Young Female Shoppers

Varitha Kiatpinyochai, the new CEO of Lazada Thailand, revealed that the initiative is designed to entice more young female shoppers and empower local small and medium-sized enterprises (SMEs) to engage in cross-border trading while providing access to premium brands. With Thailand's e-commerce sector estimated to be worth a staggering 980 billion baht, competition is fierce, and Lazada is determined to capture a larger market share.

Competitive Landscape

After finally achieving profitability this past July, Lazada Group, including its Thai operations, has found success, with Lazada Thailand boasting three consecutive years of profitability since 2021. However, the competitive landscape is shifting, especially with platforms like YouTube and Shopee launching their online shopping services in Indonesia and planning to expand throughout Southeast Asia, fueled by the rise of TikTok as a retail competitor.

E-Commerce Growth Projections

Ms. Kiatpinyochai noted that despite current economic challenges, Thailand's e-commerce sector is projected to experience double-digit growth in the next two to three years, benefitting from strong mobile internet connectivity and advanced payment and logistics systems. This growth is further supported by a significant increase in purchase basket sizes, particularly in the realms of fashion and beauty.

Market Surge

In 2023 alone, Thailand's e-commerce market surged by 20%, solidifying its position as the second-largest in Southeast Asia, trailing only behind Indonesia. Notably, female Gen Z shoppers represent an expanding demographic, with around 35% reportedly shopping online for family needs. This trend underscores the importance of personalised shopping experiences in an increasingly saturated market.

Key Strategies for Personalisation

To capitalise on these insights, Lazada plans to implement three key strategies. First, the company will focus on enhancing customer personalisation through AI, aiming specifically to attract female and younger shoppers. They are looking to distinguish premium and exclusive brands further within their offerings to meet the elevated tastes and preferences of their customers.

Secondly, Lazada intends to invest in gamification applications, which have already attracted over a million users who spend three times more on the platform. An impressive 82% of these users visit the app daily, showcasing the potential for engaging shopping experiences. Recently introduced features like "Ask the Buyer" will leverage AI to encourage product reviews and enhance consumer interaction.

Lastly, taking empowerment further, Lazada is committed to providing local SMEs with AI tools that facilitate their ability to market and sell products in Malaysia, Singapore, and the Philippines, widening their reach in Southeast Asia.

Conclusion

With its focus on innovation and customer-centric approaches, Lazada is paving the way for a retail revolution in Thailand, and the eyes of the e-commerce world are watching closely! Will Lazada’s bold strategies change the shopping landscape forever? Stay tuned!