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FMCG, fashion spur Lazada Indonesia growth

eCommerce group Lazada Indonesia says its current volume growth has accelerated to more than 150 per cent than at the same time last year.

Key contributing categories are FMCG and fashion, which are both growing more than three times as much as last year. Also, about 80 per cent of the orders are via mobile devices.

“Our rapidly growing orders in categories such as FMCG and fashion, being shipped all across the country, further demonstrates that Lazada has truly become the one-stop shopping destination of choice,” says Lazada Indonesia co-CEO Florian Holm.

This success is also helping SMEs, which can now sell on Lazada free of commission – an initiative that will ultimately also benefit consumers through more competitive pricing, says Lazada. The initiative has helped SMEs achieve up to 10 times growth in sales since the beginning of the year.

Brands are also benefiting from the growth through partnerships with Lazada Indonesia to offer exclusive products.

In a recent Lazada collaboration with L’Oreal Paris, the My Superstar Look campaign – endorsed by celebrities Maudy Ayunda and Dian Sastrowardoyo – resulted in a 10-times increase in sales as well as engaging thousands of new customers for the cosmetics giant.

Levi’s is now working with Lazada to create an onsite experience including product story videos, and fit and size guides to help consumers find the right jeans. This season the companies will run joint marketing campaigns for the Levi’s 511 Slim Fit Jean for men and Levi’s 711 Asia Skinny Jean for women.  

Free shipping

Meanwhile, Lazada Indonesia has launched a free shipping service, enabled by its last-mile logistics arm and network of reliable delivery partners. The company has also extended its cash-on-delivery option to more products.

Lazada Indonesia’s strong growth comes on the back of Alibaba Group’s investment, announced in April. To reduce lead-time to the consumer, Lazada has started using Cainiao, a logistics network 47 per cent owned by Alibaba which allows parcels to be picked up from Lazada merchants in China. Lazada has also entered into a partnership with Alibaba subsidiary UCWeb to drive more traffic to the platform.

For the fourth quarter, Lazada Indonesia is planning more initiatives and preparing for the Online Revolution, an online event involving sellers and consumers. From November 11 to December 12, Indonesian consumers will be offered flash sales, special promotions, attractive deals and engaging activities.

“Since we created the Online Revolution in 2012 to introduce consumers to online shopping, it has sparked a shopping frenzy that breaks records year after year. No other eCommerce player in Southeast Asia can claim a similar achievement,” says Holm.

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