E-commerce behemoth Lazada looks back onto a successful 2021

February 08, 2022 | 09:35
Considering its proud achievements in 2021, Lazada Vietnam expects more breakthroughs in 2022 to bring more value to their customers and partners.

Lazada hit impressive milestones in 2021, with remarkable profits, site traffic, and a record number of orders and new sellers on the platform.

Looking back on the breakthrough year, Lazada Vietnam’s leaders shared their experiences in surviving the pandemic, thereby continuously creating more value for customers, users, and business partners.

The pandemic posed many challenges, but it has also pushed businesses to adapt to the digital transformation. Lazada Vietnam's CEO described this amazing digital migration of Vietnamese businesses as an astonishing wave.

Since October, the number of new sellers joining the platform has increased by about 30 per cent per month. According to the report “E-commerce in 2021: Adapting and quickly overcoming obstacles from COVID-19”, in the first 11 months of the year, sellers from non-urban areas accounted for 40 per cent of all new merchants on Lazada.

The percentage of new sellers from Hanoi and Ho Chi Minh City also increased by 29 and 31 per cent, respectively. Fast-moving consumer goods recorded the highest increase, followed by fashion, home furniture, and electronics.

James Dong, CEO of Lazada Vietnam and Thailand, believes this is a good sign for Vietnam's growing momentum.

James Dong, CEO of Lazada Vietnam and Thailand. Photo by Lazada Vietnam
James Dong, CEO of Lazada Vietnam and Thailand. Photo by Lazada Vietnam

To support sellers, Lazada has shortened the listing process and integrated business management solutions with real-time charts. The platform has also implemented marketing and promoted transportation processes, ensuring on-time, non-contact, non-cash deliveries for buyers and sellers.

During the peak of the pandemic in Ho Chi Minh City, Lazada shortened the sales registration process to three hours for fresh food suppliers and reduced the delivery time. These solutions helped reduce the risk of spreading infections, stabilise food prices, and meet urgent consumption needs.

Moreover, Lazada's “three Easy”, covering easy to buy, easy to sell, and easy to deliver, has yielded achievements. “The benefit and safety of customers and business partners are always the top priority of the platform,” said Dong.

The practical test for the supply chain

Vu Duc Thinh, CLO at Lazada Vietnam, described the supply chain situation during the pandemic as terrible. For more than four months, transportation, sales, and trading activities were almost frozen. The flow of raw materials, goods production, distribution, and transportation were all interrupted.

“Without goods, sellers fail to conduct business. Without duct tape, sellers can’t pack their goods. Even after tackling those difficulties, if shipping units shut down, buyers won’t receive the goods,” Thinh explained.

Overcoming obstacles, Thinh and the Lazada Vietnam logistics team made several efforts to adapt in to maintain operations and item flow. Pandemic-prevention solutions at working sites were quickly deployed to ensure the safety of employees and customers.

Vu Duc Thinh, chief logistics officer of Lazada Vietnam. Photo by Lazada Vietnam
Vu Duc Thinh, chief logistics officer of Lazada Vietnam. Photo by Lazada Vietnam

“We all work from 5am to 11pm every day. At the end of the day, we usually evaluated the effectiveness of our work and adjusted for the next day,” said Thinh.

Looking back at 2021, Thinh is proud that Lazada has been one of the few e-commerce platforms in Vietnam to maintain its supply chain during the pandemic. The logistics system completed the target from the beginning of the year. Some indicators exceeded expectations. Efforts to ensure smooth operations not only helped business remain stable, but also met the increasing demand of consumers. That contributed to maintaining growth for Lazada, ensuring jobs and stable income for all staff.

“The ability to adapt with a long-term vision for sustainable development is Lazada's strength. Lazada has focused on technology and logistics since the early days of development and the importance of this strategy is proven,” Thinh stated.

Understanding and accompanying

Besides logistics, Lazada has carried out many marketing activities to help the community overcome the challenges in the past year.

Nguyen Thi Thuy Hang, chief marketing officer of Lazada Vietnam, said the marketing team always concentrated on optimism and comfort of users and the community. Lazada has flexibly approached and interacted with customers via many activities.

By offering discount vouchers, Lazada has encouraged shopping. For loyal customers, the platform has provided the Voucher Club package with many benefits.

Nguyen Thi Thuy Hang, CMO at Lazada Vietnam. Photo by Lazada Vietnam
Nguyen Thi Thuy Hang, CMO at Lazada Vietnam. Photo by Lazada Vietnam

“Incentives can solve cost-related problems, but it needs more factors to really share with the community,” said Hang. That is why in 2021, Lazada's shoppertainment (shopping and entertainment) activities were heavily invested in. Hundreds of livestream episodes were performed every day with diverse content, meeting entertainment needs via LazCook, LazMusic, LazGetfit, LazLearn, LazHome, and LazPlay.

According to statistics from Lazada Vietnam, during the peak days of its Shopping Festivals, the platform created more than 400 livestream episodes per day, attracting a 5-6 times increase in viewership compared to weekdays. SuperShow, a music festival, also reached tens of millions of views on its platforms.

“Technology is expected to be the key to enhancing user experience. This year, we will apply more modern technologies, accompanying users in the shopping experience on the Lazada platform,” Hang shared.

In terms of recruitment and training human resources, Van Thi Hong Hanh, chief people officer at Lazada Vietnam, said the success of Lazada last year came thanks to its young, adaptive, proactive, and creative staff.

The platform set out a competency framework consisting of seven criteria as the foundation for personnel, recruitment, training and career development decisions and plans.

The criteria include problem-solving, creativity and improvisation, communication, and other crucial factors.

Van Thi Hong Hanh, CPO at Lazada Vietnam
Van Thi Hong Hanh, CPO at Lazada Vietnam

During the pandemic, Lazada has ensured the health of both employees and the community. Many programmes were also implemented to motivate, connect, and honour outstanding individuals and groups.

In 2021, Lazada's workforce rose by 20 per cent in comparison to 2020. According to HR Asia Magazine, Lazada was named “Asia's Best Place to Work” for three years in a row due to a range of policies and initiatives with a people-centric strategy.

“What makes Lazada so outstanding is that we don’t get distracted by short-term financial goals or transient statistics. Instead, we always strive for long-term, more sustainable growth by constantly improving the customer experience and extending our brand partners and sellers,” Dong emphasises.

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional