Selling Crossborder on Lazada Overview

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Selling Crossborder on Lazada Overview
Selling Crossborder on Lazada Overview
Selling Crossborder on Lazada Overview
South East Asia’s Digital Economy is Growing Rapidly
                                      SEA in 2018                                                                             A Bright Future

    Combined GDP                                              Population                                             GDP Growth                      Consumption
           $ 2.7T                                                 650M                                                  5.2%                            $ 2,875
    4th largest region by                                 3rd largest region by                                                                    Annual consumption
                                                                                                                   Real GDP growth
   GDP; after US, EU and                                 population; after China                                                                 expenditure per capita in
                                                                                                                 forecast (2018-2022)
            China                                               and India                                                                                 2020

  Youth Population                                     Internet Penetration                                          Infrastructure                  E-commerce

           45.3%                                                  55.0%                                                 $ 75B                            $ 88B
 Between 20 to 49 years of                                 Potential to increase                               Infrastructure investments       Market size est. for 2025; 8x
          age                                            significantly with mobile                                in SEA under OBOR              higher than $11B in 2017

Sources: OECD, Wearesocial and Hootsuite, Euromonitor International, DBS,
Google - Temasek                                                                   Strictly Private & Confidential                                                           2
Diverse Countries With Unique Characteristics
•     SEA comprises many diverse countries, with varying purchasing power, internet penetration, and pathways to
      success

                                                                                                                              Internet   Mobile    GDP Per
                                                                                                                 Population
                                                                                                                               Users     Users      Capita

                                                                                                     Vietnam     96.02m       66.7%      72.9%    US$2,482

                                                                                                     Thailand    69.11m       82.5%      80.4%    US$6,745

                                                                                                     Philippines 195.70m      63.4%      57.7%    US$3,301

                                                                                                     Malaysia    31.83m       78.8%      67.9%    US$10,490

                                                                                                     Singapore    5.75m       84.0%      81.9%    US$55,231

                                                                                                     Indonesia   265.40m      50.0%      67.0%    US$4,116

Sources: Wearesocial and Hootsuite (January 2018), iPrice Insights (2017),
Statistics Times (2018 )                                                     Strictly Private & Confidential                                                 3
Lazada: SEA’s Premier E-Commerce Destination
                  Company Overview                                                     Lazada In Numbers

    The online destination site of choice in Southeast               260M SKUs                          145K Sellers
    Asia                                                          Available on the Lazada                  Both local and
                                                                   universe, bringing the               international sellers
•    HQ in Singapore with local operations in 6 countries               world to SEA                  present on our platform

•    Launched 5 markets in March 2012: Indonesia,
     Malaysia, Vietnam, Philippines, Thailand
•    Launched Singapore in May 2014
    Created an end-to-end ecosystem enabled by best-
    in-class logistics and payments capabilities to
    address key challenges in Southeast Asia
                                                                    3,000 Brands                       23 Categories
    The Alibaba Group became our majority shareholder
                                                                   Actively working with                   To meet every
    since 2016                                                       Lazada including                  customer’s needs; key
                                                                   industry leaders like                 categories include
                                                                  Apple, P&G, Puma etc.                 electronics, fashion,
                                                                                                           mother & baby

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Lazada: Servicing SEA Since 2012
                         July:                                             November:                                             FY:
                         • Roll out marketplace                            • Open first data center                              • Introduction of Taobao
                             model                                                                                                  Collection to SG, MY,
                                                                                                                                    ID, PH and TH
                                                                                                                                 April:
                                                                                                                                 • Introduction LiveUp, a
         2012                                              2014                                                2016                 lifestyle membership               2018
                                                                                                                                    program in SG
                                                                                                                                 • helloPay rebrands to
                                                                                                                                    Alipay SG / MY / ID /
                                                                                                                                    PH
                                                                                                                                 June:
                                                                                                                                 • Alibaba Group ups
                                                                                                                                    stake in Lazada Group

March:                                            May:                                                April:                                                March:
• Set up Lazada Group                             • Set up Singapore                                  • Alibaba Group acquires                              • Alibaba Group invests
   HQ in Singapore                                  operations                                           controlling stake in                                  an additional $2 billion
• Launch in 5 markets:                                                                                   Lazada Group
   ID, MY, VN, PH and                                                                                 November:
   TH                                                                                                 • Acquires RedMart in
                                                                                                         Singapore
                                  2013                                              2015                                                  2017

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Three Pillars Support Lazada’s Success
•       Lazada’s core proposition is to add-value to sellers and buyers through three areas of expertise

              Customer Focus                               Logistical Excellence                     Innovative Technology
          Only platform supporting payment            Logistics network built from the ground       Marketing solutions informed by
                                                  1                                             1
    1     options like COD reaching the largest       up to service SEA at scale                    enhanced data & reporting
          addressable market

          Mobile-led Consumer-centric                 Differentiated logistics solutions to         Customer engagement through
          localisation (eg, translation, mobile   2   provide sellers with flexibility in       2   innovation social commerce and
    2
          optimisation) to maximise product           operating models                              education content
          accessibility

          Servicing the broadest range of             Cutting edge services including the           Personalised homepage using our
    3     consumers with an assortment            3   DFTZ, ASEAN’s first regional fulfilment   3   state of the art algorithm to
          spanning brands to OEM                      hub                                           engagement

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Crossborder: Your Key To Unlocking SEA
•     The Crossborder (“CB”) team is committed to helping brands develop and expand across SEA
•     Our business core competencies allow us to provide best in class services

                             CB At A Glance                                                            Core Offering

                                              Average Spending:           1 contract to access 6     1 time content upload:    1 simple shipping rate
        51.8% Male             48.2% Female
                                                   US$ 20                        markets             Lazada replicates your   card to all markets with
                                                                                                          items for you            Lazada Global
                                                                                                                                     Shipping

                                                                                          1 remittance solution   1 single support center
                                                                                           via your preferred      and training platform
                                                                                            payment provider           for all markets

Note: (1) As of March 2018
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DFTZ: Our Cutting Edge Logistics Solution
•   Lazada offers an easy access to SEA markets from a centralised bonded hub with minimal barriers to entry

                                                                                        Benefits For Brands

                                                                     Simple Access to       Centralize Stock Into    ASEAN’s Regional
                                                                     Growing Market         Bonded Warehouse          Fulfilment Hub

                                                                                                                    • Leverage on
                                                                                           • Light touch point        existing B2C
                                                                                             of entry to SEA          logistics network
                                                                   • Fast and simplified
                                                                                             that enables the       • Opportunity to
                                                                     e-ecommerce
                                                                                             servicing of the         evaluate the
                                                                     platform
                                                                                             region through a         business case for
                                                                   • Direct access to
                                                                                             common inventory         regional
                                                                     550 million people
                                                                                           • Simplified set up        expansion into
                                                                                             to test the markets      local inventory
                                                                                                                      holding

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Thank You
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