WECOMMERCE 2019: Lazada matches locals to overseas traders and manufacturers
By Kiran Kaur Sidhu October 10, 2019
- Opportunities for Malaysian entrepreneurs to sell or design unique product brand
- 97% growth in sellers on platform mostly from non-metropolitan states of Malaysia
“Good partnerships and technological innovations are often the catalysts of successful businesses and retail trends, which is why we are introducing business matching to boost resources available to Malaysian digital entrepreneurs, as well as showcasing Lazada’s capabilities in tech for a glimpse into the future of eCommerce selling and buying,” said the chief executive officer of Lazada Malaysia, Leo Chow at Lazada’s annual seller summit, WECOMMERCE 2019.
With its extensive global crossborder network, Lazada Malaysia’s business matching aims to connect Malaysian entrepreneurs with traders and manufacturers. Business matching allows Malaysian sellers to build their own brands by getting unique products of their own design made by manufacturers. Direct access to traders creates more diversity in price points as cost is reduced by removing intermediaries.
The summit brought together retail and eCommerce experts, global traders, sellers and entrepreneurs around the region to share best practices, upskill themselves through analytic tools and training, network for business matching opportunities and discover new retail concepts to stay ahead of the ever-evolving consumer demands.
Among talks delivered were by trainers from Taobao University, while training sessions were held by Lazada’s Lazstar Academy trainers. Participants also had the opportunity to network with traders and suppliers from ASEAN, China, Japan, Australia and New Zealand to discuss their business needs.
Referring to the traders and suppliers from outside Malaysia, Kevin Lee (pic), the chief business officer of Lazada Malaysia, said: “These are people we approached through the trade agencies in their respective countries. They want to connect to local distributors to manage business in Malaysia. Some opportunities exist for those with ideas for a design or product to connect with manufacturers and create new Malaysian brands.”
The e-commerce platform also reported a staggering 97% growth in new sellers on the platform since September 2018, with the highest growth seen from non-metropolitan states of Kelantan (137%), Labuan (121%) and Kedah (116%).
Although Lee, declined to share actual numbers, the spike in sellers onboarded aligns with the latest Google, Temasek and Bain & Co e-Conomy SEA 2019 report, which predicts the internet economy growth outside of metros double that as inside them from now to 2025.
On Lazada’s part in supporting these sellers, Lee points to Lazada’s logistics network: “We have eight warehouses throughout Malaysia - six in Peninsula Malaysia, two in East Malaysia. We have over a 1,000 drop-off points in Malaysia, 450 of which are in the Klang Valley itself.”
Lazada’s drop off points allow sellers to send their goods to be then handled and delivered to consumers by the logistics team. Additionally, Lazada’s partnerships with Collectco and PopBox give consumers the option to pick up their items from a location nearby from over 250 available collection points.
The recent 2Q19 study by iPrice also revealed Lazada Malaysia’s slip to second position, after being overtaken by Shopee in terms of the number of mobile and desktop visits. Nonetheless, Lazada’s mobile app still ranks top in the region with the highest number of active users in Malaysia, Singapore, Philippines and Thailand.
Lee was tight-lipped on competition with other market players but strongly believes Lazada’s upper hand lies in its tech and logistics. The summit also showcased new retail augmented reality tech which includes the Fashion Mirror for customers to virtually try on clothing and cosmetics, as well as purchasing snacks using the Lazada Wallet to do away with conventional lining up to pay for items.