Southeast Asia’s leading e-commerce platform, Lazada, on March 25 announced the results of a regional consumer study in collaboration with Milieu Insight.
The study shows that a large number of shoppers (73 per cent) now consider shopping online to be integral to everyday life, with 67 per cent of them identifying e-commerce campaigns as a key factor in shaping their behaviour.
As a pioneer in the digital commerce industry celebrating its 10th year in the region this month, Lazada has been shaping and driving shopping behaviour with over 130 million annual active consumers in the region.
"Digital commerce has changed the way people shop in the past decade, especially in the last two years. Such changes are showing a lasting effect, especially in emerging markets. This first region-wide consumer study shows that large-scale campaigns, pioneered by Lazada in Southeast Asia a few years ago, still matter to the consumer. They look forward to the deals and shoppertainment features that come with each campaign,” said James Chang, chief business officer at Lazada Group.
“We partnered with Milieu Insight to better understand the key drivers behind e-commerce in Southeast Asia, and the results have helped reinforce our trajectory, while also providing businesses and sellers valuable market insights to guide critical business decisions, which helps them to determine their growth and focus in this digital economy,” he said.
The online shopping landscape has evolved massively in the last two years, with Southeast Asia leading this change globally, according to Gerald Ang, CEO at Milieu Insight.
"That is why we wanted to identify the new behaviours and current sentiments of online shoppers in Southeast Asia. On the back of this partnership with Lazada, we’ve gathered fundamental data across their six regional markets, helping them understand the intricacies of each," said Ang. "As Lazada continues to shape the thriving modern-day e-commerce economy, these insights are meant to equip them in formulating the most effective consumer outreach strategies in the current environment.”
The study also highlights that consumers continue to participate in mega campaigns, with 67 per cent of the digital consumers completing a purchase during one of these schemes. Low prices (45 per cent) and affordable shipping (45 per cent) top the list of reasons people are buying online, followed closely by ease of search (43 per cent) and convenience (43 per cent).
Reviews and ratings are key to a positive shopping experience, especially for online shoppers in Singapore (61 per cent) and Thailand (66 per cent). Buying authentic products is amongst the top reasons for online shopping in Singapore (54 per cent) and Vietnam (53 per cent) while the variety of payment options available is the top reason for Indonesia (54 per cent). In markets like Singapore (53 per cent) and Malaysia (45 per cent), secure payment options are also key criteria.
Consumers are choosing to purchase their items through digital channels, with 65 per cent reporting that when they shop online, they already know what they’re going to buy. To further augment the experience, 29 per cent of respondents report enhanced engagement with the platform through additional browsing for the best deals and exploring the platform for additional items ahead of completing the sale.
In addition, the study shows that digital commerce has taken hold as an everyday convenience in Vietnam. Vietnam has the highest percentage of respondents considering online shopping as indispensable from their daily routines (81 per cent) across the region, as well as the percentage of respondents indicating that they shop online at least once a week or more often (59 per cent).
Shoppers are looking for value-for-money deals to optimise household expenses. This is exemplified by the 66 per cent of respondents that always seek the best deal, while the other 34 per cent said that they bought items regardless of whether there was a discount.
Shoppers in Vietnam, Indonesia, and the Philippines have a preference for local brands, with one in two (52 per cent) Vietnamese respondents showing a strong preference for shopping from local brands. In such context, 71 per cent of people also agree that Lazada is an e-commerce platform that provides good support for local sellers.