Tag: E-Commerce

  • Faster way to shop online with Visa

    Faster way to shop online with Visa

    According to Visa Consumer Payment Attitudes Study 2015, 67% of Malaysians shop online at least once a month, an increase from 53% in 2014.

    However, 81% of online shoppers in the country have abandoned a purchase because it took too much time to complete the payment process, revealed a study conducted by eCommerce Monitor in 2015.

    Now, online and mobile shoppers can purchase their desired items without much fuss because there is a better way to do so.

    Visa has just officially launched its Visa Checkout in Malaysia, a fast, easy and secure payment service that allows Malaysian consumers to pay for goods online, on any device, in just a few clicks.

    All users need to do is enter their username and password rather than a 16-digit credit card number, and select their required Visa credit, debit or prepaid card to complete the transaction.

    Visa country manager for Malaysia Ng Kong Boon noted the increasing significance of technology becoming part of Malaysians’ everyday lifestyle, including shopping online and on mobile devices.

    “Visa Checkout is designed to improve the digital shopping experience by making the payment process fast and secure, reducing the number of steps required to complete an online purchase.

    “We have partnered with several key merchants in the country to be part of our launch and we are confident consumers will embrace Visa Checkout across all their devices,” said Ng, adding that at least 100 merchants are expected to engage in Visa Checkout by year end.

    Visa Checkout is now accepted at a wide variety of online merchants in Malaysia including Golden Screen Cinemas (GSC), Superbuy.com, SweetSpot Digital, Little Whiz, Twenty3, Avenue 86, CUTI, Malindo Air and Lelong.my.

    There are also 13 banks in Malaysia on board for this service, with Maybank being the first bank to enrol Visa cardholders for the service and offer Visa Checkout acceptance to merchants across the country.

    With the roll-out of Visa Checkout, Visa aims to concentrate on its existing cardholders for this service.

    “Today, we have more than 20 million debit and credit cards issued in the market, and all these cards will be targeted for the Visa Checkout enrolment. Of course, new customers are welcome to enrol too,” shared Ng.

    In conjunction with the Visa Checkout launch, both GSC and Malindo Air are giving special offers to Visa Checkout users.

    Customers can enjoy normal movie tickets at a flat fee of RM8 until June 3, with a maximum of six tickets per Visa card per transaction.

    Those purchasing Malindo Air flight tickets or holiday packages with minimum transaction of RM250 will get a RM50 discount code for subsequent purchases from the airline.

    Both offers are subjected to terms and conditions.

  • Lazada Philippines Celebrates 4th Anniversary

    Lazada Philippines Celebrates 4th Anniversary

    Lazada, the leading online shopping and selling destination in Southeast Asia is celebrating its 4th anniversary with a 4-day Birthday Sale from March 15-18.

    The Birthday Sale will treat shoppers to a range of deals of up to 90% across a wide selection of categories featuring Home and Living, Travel and Luggage, and Consumer Electronics.  Well-known brand partners including Samsung, Microsoft, Tosot, Unilever, Nestle, and Belo will also participate in the sale offering special promotions throughout the celebration.

     image002 

    Birthday blowout highlights include:

    ·         Hourly Flash Deals

    ·         Php 4 Sale

    ·         Jackpot games for additional discounts

    ·         Facebook & Instagram games where customers have a chance to win a TV and smart phones

    ·         A chance to win a trip to Dubai for two with every Cherry Mobile purchase  

    Brand ambassadors LA Aguinaldo and Kelsey Merritt, who personify Lazada’s fun and effortless vibe, will join the country’s largest online party.  

    Birthday Milestones  

    Where Customers go, Lazada goes

    Since its launch in 2012, Lazada PH has experienced rapid growth. “We delight in witnessing how Filipinos’ shopping habits have evolved, as we commit to give customers more options to make the most out of their busy lifestyles. 60% of Lazada customers already shop via mobile – a clear indication of how Lazada has successfully adapted to modern Filipino digital habits. We collaborate closely with the biggest brands to offer the best assortment and prices, which has made Lazada a primary destination for every shopper,” said Lazada PH CEO Inanc Balci.  

    Empowering a growing SME segment

    Balci stressed Lazada’s commitment to helping SMEs tap wider markets. “In our four years of operations in the Philippines we have seen tremendous opportunity for SME’s in the e-commerce industry. We currently have 7,000 merchants onboard, and continue to make enhancements in our sellers’ platform to encourage more entrepreneurs to sell online. We commit to provide logistics capabilities to make selling more effortless for our merchants.”  

    More products, more places, more birthdays to come

    “Looking ahead, Lazada Philippines will continue to focus on increasing our product assortment, expand our logistics infrastructure and introduce payment solutions to further enhance the effortless shopping experience for our customers,” Inanc added.

    Future Plans

    Lazada PH has recently unveiled the new site 30-sqm Fulfillment Center in Cabuyao, Laguna which will for be completed by end-year.  The center, which is double the capacity of the current warehouse, will have automated features for inventory, selection, parcel movement and dimensional weight measurement.

    Lazada Express, the in-house delivery arm is and modernizing the Sortation Center and opening 20 hubs throughout the country to increase delivery footprint and reach.

    And as part of Lazada’s commitment to make shopping more effortless for everyone, an express delivery option will be launched in Metro areas for rush deliveries.

  • Zalora Turns 4 this March

    Zalora Turns 4 this March

    ZALORA, Asia’s online fashion destination, is celebrating its fourth anniversary this year. To commemorate the milestone, ZALORA will host a series of events and activities for customers, media and partners in Singapore, Malaysia, Indonesia, Hong Kong, Taiwan, Philippines, Vietnam and Thailand throughout the next two months.

    “Over the past four years, ZALORA has consistently strive to improve its product offering, brand proposition and customer experience to change the online fashion retail scene in Asia. According to a research, only 40% of the Southeast Asia population have access to the internet1, this is still below the global average. As an online retailer in an emerging markets, it’s important for ZALORA to contribute to the growth of e-commerce in the region and offer a platform where brands can reach more consumers and for fashion consumers to have access to the best fashion brands anytime, anywhere,” said Michele Ferrario, CEO, ZALORA Group.

    ZALORA celebrates by giving back to fashion

    As part of the fourth year anniversary celebration, ZALORA is introducing two exciting initiatives: ZALORA Style Awards and Make Me a ZALORA Model. In its effort to encourage and support the region’s fashion community, ZALORA will honour talented individuals who made the fashion scene in Southeast Asia a hotbed for creativity and expression through the ZALORA Style Awards, which is set to debut in late March 2016. ZALORA strongly believes that fashion is a great enabler and by giving recognition to individuals in the industry who have been contributing to their respective local fashion communities, ZALORA hopes to inspire future fashion players to pursue a career in the industry.

    In April, ZALORA will launch the first ever regional model scouting competition, using Instagram and the infamous “selfies” as a platform for its search. From a modelling contract with ZALORA to fantastic gift prizes, Make Me a ZALORA Model is an opportunity for aspiring models to fast track their career and become the newest face in modelling scene. More information will be available soon.

    How ZALORA is changing the way people shop fashion in Asia

    Access

    From the start, ZALORA saw navigating the complex and fragmented Southeast Asian infrastructure – achieved with heavy investments in operations and logistics resources and strong local teams – as essential to the company’s success. This focused vision and execution have directly resulted in access to otherwise inaccessible global and local fashion and beauty brands for fans in second and third cities or remote places in Southeast Asia – many hours away from the closest offline store.

    Bridging offline and online

    To introduce ZALORA to consumers in the region and build trust with first-time online shoppers, ZALORA launched the first click-and-mortar shop in Asia that gives consumers a physical ZALORA experience where shoppers can try on products and get familiarised with shopping ZALORA’s e- commerce site. The success of the first digital pop-up store in Singapore led to the opening of more pop-up stores in the region – Penang, Malaysia, Jakarta, Indonesia, Hong Kong, Ho Chi Minh, Vietnam and Manila, Philippines. Designed to increase awareness, this omni-channel approach has proven to be a success as up to 90% of consumers who bought from the pop-up store are new customers.

    Platforms

    The number of smartphone users in Asia Pacific – more than 1 billion in 2015 – is projected to increase by almost 50% by 20192. Keeping pace with the regional growing popularity of m-commerce, ZALORA is focusing on providing a World-Class experience through its apps which are available on all Android and iOS platforms, ensuring that mobile consumers are empowered with the convenience of shopping

    anytime and anywhere they go even in areas where connectivity is not yet very fast. This results in more than 10 million downloads of the award-winning ZALORA app.

    Growth

    In developing countries/cities where hard assets infrastructure is not as developed and distribution of goods are weaker, mobile phone becomes more than a communication tool; it is a platform to procure goods. Based on MasterCard’s Mobile Shopping Survey, half of smartphone users in Asia Pacific are shopping on their device – a clear indicator of a shifting consumer habit as more people are venturing into mobile commerce. Nearly half of the respondents across Asia Pacific (49.5%) cited convenience as the most compelling reason for shopping on their smartphone. Other motivating factors include the ability to shop on the go (43.9%). Driven by this shift, ZALORA is constantly improving its apps, enhancing efficiency and ease of use for the customers. The effort has paid off: more than 50% of site visits in 2015 were from the ZALORA App or mobile site, with more than half of the orders coming from mobile devices.

    During the annual cyber event 12.12 Online Fever in December 2015, fashion thumb shoppers also gained grounds on desktop shoppers: 78.5% compared to 21.5%. Additionally, the number of customers who shopped on ZALORA through mobile had a 250% increase from 2014. This is in line with the changing consumer behaviour and the growing trend of consumers in the region shopping heavily through their mobile devices.

    ZALORA’s 12.12 Online Fever – Asia’s version of Cyber Monday – played a pivotal role in the boost of the regional confidence in online purchase, subsequently converting traditional consumers into e- consumers. This initiative was met with strong support from fashion consumers across the eight markets – Singapore, Malaysia, Indonesia, Philippines, Thailand, Vietnam, Hong Kong and Taiwan – with over six times the volume of any previous day, and an acquisition of 32% first time ZALORA customers in 2015.

    According to PayPal Cross-Border Consumer Research 2015, fashion emerged as the top category for both online cross-border shopping (53%) and mobile shopping (27.9%). To keep pace with the demand, ZALORA carries over 6,000 global and local fashion brands on one single site, carefully curated to provide the best fashion offering for its customers.

    In recognition of the growth in online fashion shopping, ZALORA will sustain its dedication to an ever- improving and meaningful online shopping experience: the access to favourite brands and same-day delivery, all achieved with a few clicks. Every day, ZALORA is one step closer to revolutionising the way people shop and redefining the high-street fashion accessibility in this part of the world. To date, ZALORA has served close to four million customers in just a few years.

    Driven by a team of young experts in fashion, logistics, data analytics, marketing, and design, paired with guidance from business consultants and tech geniuses, ZALORA’s vision is set on growth, making ZALORA the online fashion authority in Asia. ZALORA will continue to strive for excellence, enhance the customer experience by improving interface and customer engagement, particularly through mobile applications, boost confidence in online shopping and transform the way fashion is purchased in Asia to help build an e-commerce friendly environment.

    Follow ZALORA’s fourth anniversary celebrations at #ZALORA4You.

  • Indonesia’s Emtek, Murdoch invest in Malaysia’s

    Indonesia’s Emtek, Murdoch invest in Malaysia’s

    iFlix CEO Mark Britt shows his company’s streaming TV series and video service on a gadget. The Malaysia-based company has just received a capital injection from Indonesia’s Emtek and Rupert Murdoch’s Sky plc., the owner of national TV stations SCTV and Indosiar, has spread its wings by investing in Malaysia’s streaming movies and TV series provider iFlix.

    Along with European investor Sky plc, owned by mogul Rupert Murdoch, Emtek through PT Surya Citra Media has become a new investor in iFlix. Sky said it has injected $45 million into the company.

    “The investment will support our continuing commitment to providing our members with the best in entertainment,” said iFlix CEO and co-founder Mark Britt in Kuala Lumpur on Thursday.

    Providing a service similar to Netflix’s, iFlix is available in Malaysia, Thailand and the Philippines. Indonesia is likely to be the company’s next market for expansion.

    In April 2015, iFlix got a $30 million injection from Malaysia’s Catcha Group and Philippine Long Distance Telephone Company (PLDT). PLDT is owned by Indonesian tycoon Anthony Salim and his family through Hong Kong-based First Pacific Finance.

    Sariaatmadja family, who owns Emtek, is known to have tight business relations with the Salim family. It can be seen from the share ownership-swap deal between Sariaatmaja’s London Sumatera Plantations (Lonsum) and Salim’s Indosiar Visual Mandiri (Indosiar TV).

    Salim bought Lonsum from Sariaatmadja in 2007 through plantation company PT Salim Ivomas Pratama In 2011, Sariaatmadja bought Indosiar through PT Surya Citra Media.

    It strengthened both families in their core business. Salim is prominent in the consumer goods business, mainly with Indofood, while Sariaatmadja is strong in the media business.

  • Behind the glitz and glamour is where Indonesia can shine, says Anchanto CEO

    Behind the glitz and glamour is where Indonesia can shine, says Anchanto CEO

    As the startup industry in Southeast Asia develops, we become increasingly familiar with fast changes and daily happenings that continually make the news. It seems that every new day brings with it a flashy new tech startup, else a venture investment that makes your salary seem like nothing at all.

    However, we often forget that these companies and investor monies are highly dependent on the other not-so-flashy modes of business, such as those that Anchanto’s CEO Vaibhav Dabhade, fully embrace. Set to share his views on Echelon Indonesia 2016’s Steer stage panel this April, Dabhade wants to empower Indonesia’s E-commerce roadmap, bringing the logistics lowdown back into the tech space.

    Logistics and entrepreneurship are deeply embedded into Dabhade’s life and family history. He regards his grandfather, who started a logistics business for trucks in central India in 1945, as a huge influence. Today, Dabhade has taken two generations of logistics experience and learning and brought this into a new, digital era.

    He co-founded Anchanto in 2011 out of a belief that e-commerce logistics and fulfilment can be made seamless through technology and the right platform. In his role as Chief Executive Officer, Dabhade oversees Anchanto’s regional business and heads company strategy. This includes management of marketing, sales, product, talent acquisition and regional market expansion.

    Dabhade holds an executive education from Harvard Business School and IIM as well as qualifications in Electronics & Telecommunication Engineering. He also spends his spare time dreaming about being a painter and excels at graphic design and arts.

  • Lazada to intensify promotion, presence in major Indonesian

    Lazada to intensify promotion, presence in major Indonesian

    Entering its fourth year of operations, regional e-commerce giant Lazada Group is seeking to expand its customer base in more major Indonesian cities in a bid to win the online store competition in Southeast Asia’s biggest economy.

    Lazada Indonesia CEO Magnus Ekbom said Monday that the company would focus on intensifying its presence in major cities outside the Indonesian capital of Jakarta, including Yogyakarta, Medan in North Sumatra, Bandung in West Java and Surabaya in East Java, through road shows and other promotional efforts.

    “The road shows in these cities will connect us with our customers and understand unique regional factors,” Ekbom said.

    “We have also studied what products seem to be the most popular [in the cities] and the results have often been interesting.”

    Lazada Group is a privately owned e-commerce company founded in 2011 by Rocket Internet with the goal of building Southeast Asia’s version of Amazon.com.

    Lazada, which began operations in the Philippines in 2012, led Internet retailing in the country last year with a 20 percent market share as it met rising demand for gadgets and electronic appliances, from smartphones, tablets to home theater systems, at prices that were a “huge” discount, according to a Euromonitor International January 2016 report.

    Aside from the Philippines, it operates sites in Indonesia, Malaysia, Singapore, Thailand and Vietnam. Singapore’s Temasek Holdings Pte is one of its large shareholders.

    On March 12, on its anniversary date, the Singapore-based Lazada Group announced that its gross merchandise value (GMV) last year stood at US$1.3 billion across its six Southeast Asian countries of
    operation.

    Lazada runs its business as both an online retailer and marketplace for other online merchants.

    There are currently 11,000 merchants utilizing Lazada Indonesia.

    Since the platform’s Indonesian beginnings, it has grown from employing 200 workers in 2012 to more than 750 in 2016. Currently, 60 percent of transactions on Lazada are made through mobile phones, indicating the mobile-savvy nature of Indonesian customers.

    “Lazada sees up to a quarter of a billion activities daily, which involve customers browsing for items, customers buying items, or even just adding things to their wish list,” Lazada’s SVP head of data science John Berns said.

    “It’s a remarkable scene, because Indonesia currently has about 70 million internet users, and will probably reach 100 million by the end of the year,” he added.

    To celebrate its fourth anniversary, Lazada Indonesia will have a sale from March 15 to March 18, which is expected to attract around 15 million visitors.

    Ekbom said that the e-commerce platform would offer up to 540,000 special deals for all customers during the sale, at discount rates of up to 90 percent, around three times more than what Lazada offered during its birthday sale in 2015.

    Brands that will participate in the sale include those in the IT, sports, automotive ad beauty product segments, including L’Oréal, Infinix, Panasonic, Lenovo, Samsung, Nike, Sharp and many more.

    Indonesia’s e-commerce market is forecast to grow to $25 billion this year from only $8 billion in 2013, according to e-commerce provider Vela Asia.

    A number of e-commerce players, both online retailers and marketplaces, plan to develop their businesses. Lippo Group has launched shopping website mataharimall.com and plans to invest $500 million. Existing marketplaces such as Bukalapak and Tokopedia have also secured some new funding.

  • Apple Pay gets off to a fast start in China

    Apple Pay gets off to a fast start in China

    China this month became the fifth country where consumers can use smartphones to pay with Apple Pay, and Chinese shoppers quickly embraced the Apple Inc. payment system.

    In the first two days after the Feb. 18 launch, 3 million consumers linked their bank cards to Apple Pay according to China Merchants Bank, one of 19 Chinese banks involved in the rollout. The payment method can be used to pay in stores with compatible terminals and in mobile apps that link to Apple Pay.

    Every Chinese consumer with a debit card and many with credit cards are eligible to use Apple Pay because Apple is collaborating with the country’s sole debit card network, China UnionPay. Banks have issued 5 billion cards that are accepted on the China UnionPay network, including 500 million credit cards, UnionPay says.

    China Merchants Bank says its customers connected 1 million bank cards with Apple Pay in the first two days of the launch, representing 35% of cards connected with Apple Pay in China. Apple and China UnionPay both declined to confirm this data from China Merchants Bank.

    Apple did say it is quite happy with the launch. “I would rate our first-day performance as 1,000, if the full score is 100,” Jennifer Bailey, vice president of Apple Pay, said at a mid-February press conference in China. Apple also has rolled out Apple Pay in the United States, the United Kingdom, Canada and Australia.

    Apple says the 19 Chinese banks offering Apple Pay, including such major institutions as Bank of China and the Agricultural bank of China, represent about 80% of bank cardholders in China.

    In addition, 16 retail chains, restaurants and online retailers in China have begun accepting Apple Pay. They include Starbucks, McDonald’s, Kentucky Fried Chicken, Circle K and the French department store chain Carrefour. Almost all of those merchants have launched promotions for Apple Pay users. For example, Starbucks offered a 15 yuan ($2.30) discount to Apple Pay users who spend 65 yuan ($10) or more.

    But consumers used Apple Pay the most on the first day of its introduction to pay on the mobile app of Meituan.com, a Groupon-like Chinese service in China, according to China UnionPay. Apple says the new payment method may double the conversion rate for e-commerce apps.

    Starbucks came in second in terms of Apple Pay payments on the launch day, followed by convenience store chain FamilyMart, McDonald’s and another daily-deal site, Dianping.com.

    China UnionPay reported that Apple Pay users’ spent 101 yuan ($15.5) on average on the first day of the service and about 47% of purchases were above 10 yuan ($1.5).

    Web-only e-retailer Vipshop, No. 4 in the Internet Retailer 2015 China 500, is among of retailers accepting Apple Pay in its mobile app, and says it received 10,000 Apple Pay orders on the first day. The company says Apple Pay could help Vipshop offer faster services to online shoppers.

    Apple Pay is hardly the first payment method in China based on mobile phones and wallets. Alibaba Group Holding Ltd.’s payment affiliate Alipay says there are about 300 million bankcards linked to its mobile wallet app, and Chinese online game and social media powerhouse Tencent Holdings Ltd. says the number of banking cards connected with its mobile apps has topped 200 million.

    However, Apple Pay requires fewer steps when paying in a store. An Alipay user must open the app on her phone and then click several times to generate a bar code that the cashier scans. With Apple Pay the consumer need only place her iPhone near a terminal and verify the payment by touching a finger on a button on the phone or by inputting her password. Apple Pay users don’t need to open an app or access the Internet to make a payment, Apple says.

    In stores, Apple Pay runs on China UnionPay’s Quick Pass service network, launched in 2013, which uses wireless Near Field Communication technology to establish a connection between a mobile phone and a terminal. There are 4 million NFC-compatible terminals in the Quick Pass network that can accept Apple Pay, of the 20 million payment terminals that accept UnionPay cards, according to China UnionPay.

    Besides Apple’s iPhone, other smartphones that consumers can use on the Quick Pass network include NFC-enabled phones from manufacturers like Samsung Group and Huawei Technologies Co. Ltd.

    Apple Pay works on the iPhone 6 or 6S, the Apple watch and some versions of the iPad. Consumers can use Apple Pay with an iPhone 5 and 5S if they pair the phone with an Apple Watch.

  • Ecommerce is so huge in China that even the 2nd biggest store saw $71b in purchases

    Ecommerce is so huge in China that even the 2nd biggest store saw $71b in purchases

    You know ecommerce is insanely huge and fully ingrained in daily life in China when the country’s second largest online store booked US$71.6 billion in purchases in the past year. That’s the figure revealed today by JD, the closest competitor to Alibaba, in its newest earnings report.

    Alibaba, which posted financials a few weeks earlier, is well ahead with a total of about US$460 billion worth of purchases on its Chinese shopping marketplaces in 2015. JD now has 155 million active shoppers who collectively placed 1.26 billion fulfilled orders in 2015.

    JD, which differs from Alibaba in that it mostly ships items to shoppers from its own inventory rather than relying on a huge network of merchants, says that its 2015 expenditure tally was up 78 percent on 2014’s. The ecommerce firm, in which WeChat maker Tencent has a 20 percent stake, now has 155 million annual active customers, up from just over 90 million back in 2014.

    They collectively placed 1.26 billion orders that were fulfilled in 2015, which nearly doubled from the prior 12-month period.

    Trillion-dollar baby

    Ecommerce spending in China this year is expected to inch past US$900 billion, says Emarketer. The data revealed by Alibaba and JD, which together account for a very sizeable chunk of online shopping in China, seems to support that projection. By 2017, China’s appetite for buying stuff online will sail past a trillion, and it’ll be worth about US$1.57 trillion by 2018.

    Amazon does not reveal consumer expenditure figures – known in the industry as gross merchandise volume, or GMV – which makes it hard to see how Alibaba and JD stack up against the US-based ecommerce giant. Amazon operates in China, but it’s a minor player there.

  • E-commerce ‘unstoppable’ as 4G rollout goes rural in Thailand

    E-commerce ‘unstoppable’ as 4G rollout goes rural in Thailand

    On The Ground: Mobile will be the catalyst for digital-focused communications and online retail—aided by a data sector in its infancy. Apart from King Bhumibol Adulyadej, there is another unifying force in Thailand: mobile.

    Thailand is the world’s leader in mobile internet usage, ahead of Saudi Arabia and Malaysia, with four hours of web time per day, about 44 percent of a Thai’s total internet time. “Thailand is a mobile-led society, as is most of Southeast Asia except Singapore,” said Grant Bertoli, CEO of Marketbuzzz.

    Thailand did not see internet adoption kick in until the end of the Web 2.0 wave in 2007, and most of the access to the internet was through mobile. “Thailand leapfrogged straight to mobile as the primary device, and as people dwell longer on it, the mobile is increasingly becoming the device,” indicated Pathamawan Sathaporn, managing director of Mindshare Thailand.

    Smartphone ownership, largely driven by lower costs, has accelerated to a point where current We Are Social numbers show that 69 percent of Thais own at least one smartphone. Mobile connections, thanks to budget packages in the competitive telco market, stand at 122 percent as a percentage of the total population.

    With the realisation of 4G service in Thailand (more of which in tomorrow’s On The Ground feature), mobile will be the catalyst for digital-focused communications and rich-media content in 2016, said Rattakorn Potharam, general manager and executive creative director of MRM Thailand.

    “This is noteworthy as rural areas are now given a better chance at mobile ubiquity.” Potharam already observes content in three prominent categories: tear-jerking dramas, Thai-humour comedies and gossipy ‘insights’ transcending above-the-line formats to digital.

    Above average social use

    As the pool of mobile internet users in Thai provinces expands, social-media users will follow suit accordingly. Thai urbanites already spend more time on social networking than the global average, with Facebook being the most popular platform. In fact, Bangkok is the number one city of Facebook users in the world with over 104 percent penetration, according to Social Bakers. And 65 percent of all locals use Facebook to search for brand information according to eMarketer—the fourth highest in APAC.

    According to TNS, 74 percent of Thais also use instant messaging daily, well above the 55 percent worldwide figure. Line is the leading app in Thailand with more than 33 million users—that is half the Thai population using Line.

    These social platforms are playgrounds of expression for Thai consumers, but they are open only in their digital lives while more conservative in person. “Whatever we are expressing on Facebook, when it comes to reality we may not do so, as rooted in the Thai culture of being accommodating,” said Yupin Muntzing, chief executive officer of McCann Thailand. This dynamic can be inspiring for future developments in brand communications.

    E-commerce opportunities abound

    Coupled with that, there are numerous implications for marketing without the burden of a PC-internet legacy. Thailand being a mobile-first market allows businesses a unique position to capitalise.

    On the commerce side, Lazada began operations only a few years ago and made a bold statement to become the Amazon of Southeast Asia. And they were one of the first e-commerce players in the region to launch both iOS and Android apps. Now, the brand claims that more than half of its traffic comes from mobile.

    New faces in the e-commerce sector include Shopee, a mobile-only discounted marketplace, Eatigo offering daily lifestyle deals, and GrabBike (rebranded to Grab) delivering urban commuting services.

    In 2015, overall internet retail recorded healthy value growth of 30 percent to stand at THB47 billion (US$1.33 billion), according to Euromonitor, with fashion and consumer electronics significant contributors.

    The Thai e-commerce market is expected to more than triple in size to THB138.86 billion (US$3.94 billion) between now and 2020, according to DHL that introduced a next-day logistics addition to its delivery infrastructure in January for this reason. At present, Thailand’s share of the market is still relatively low compared to other high-growth economies, according to DHL E-commerce Asia Pacific CEO Malcolm Monteiro. Only 1.7 percent of DHL’s total sales in Thailand are from e-commerce, compared to more than 10 percent in China.

    Anisa Ngandee, research analyst at Euromonitor, is of the view that pure internet retailers such as Lazada, WeLoveShopping and iTrueMart perform much better than multi-channel players due to the shift in buying behaviour. The provision of mobile payments, especially when facilitated offline, will be a differentiator, Marketbuzzz’s Bertoli advised.

    “Although Thai people like shopping online, they find it more convenient to pay upon delivery, especially consumers within provincial areas. Sales are still limited to younger generations,” added Ngandee.

    In the meantime, MRM’s Potharam feels e-commerce will be “unstoppable and borderless”, at least among younger buyers on social media. “Thai consumers are born social. They are yearning for relationships, rapport and chemistry. In this sense, social commerce is undergoing a makeover to match this demand for socialising, while Line, Instagram and Facebook are becoming storefronts for interaction and conversation.”

    Social and content collide

    As a result, smaller Thai brands have embraced their entrepreneurial spirit in these mobile times, selling their products and services in as many ways as possible, whether Luuk Thep dolls or clothes. Preetanjali Kukreja, strategy director at Brand New Day, has noticed local businesses “getting a lot more aggressive” on Instagram, prioritising these accounts over official websites or Facebook pages. “Somehow it feels less intrusive on Instagram compared to Facebook,” she said. “It’s simple, quick, visual, and cheap as a sales tool. People just scroll through pictures of products, click to see the price, then ‘line’ the vendor and you’re done.”

    It is of little wonder that Line is one of the go-to channels for SMEs to reach consumers, not simply for shopping, but for lifestyle solutions as well, like content. The Feb 2015 launch of Line TV, competing with digital television, provided exclusive content to customers via mobile.

    Thailand now has a “huge appetite” for content across all forms—a push factor for advertising, media and even telecoms operators, said Sunee Paripunna, CEO of Omnicom Media Group Thailand. True Digital Plus, a Thai telco, has increased its budget from US$1 million to US$3 million to buy digital content in 2016, for example.

    In the past, Thai advertisers have focused their attention on content creation in the pursuit of digital marketing, but have missed opportune moments of context now made possible by mobile technology, said MRM’s Potharam. To reap the benefits of mobile, the key is gearing towards “contextual content” that is targeted and personalised. “The context will matter a lot and unveil new spot-on insights into creativity,” he said.

    Data driving integrated marketing

    Also, mobile development will open more doors for brands to collect real-time data generated by consumers who are connected online. Big data, though in its infancy stage, will transform communications, particularly for retail, telecoms, finance and lifestyle services, said Potharam.

    For starters, Julien Chalté, co-founder and co-CEO of WearYouWant, has gathered data to identify the bulk of the online retailer’s classic customers. “In December 2015, the profile that emerged was a 36 year old woman, living in Bangkok who likes to shop on Wednesdays between 11 am and 2 pm,” he said. Half of WearYouWant purchases were made during this shopping peak of the year. Outside of Bangkok, 20 percent of customers filled shopping carts from Chiang Mai, with white shoes being the favourite purchase during December. In Nonthaburi, home to a fifth (19 percent) of shoppers, skincare and makeup products were the top category. A tenth of customers placed orders in Chonburi and was mainly looking for black outfits (79 percent of all orders).

    With more data like the above, real integrated communication—“something marketers have dreamed of”, said Potharam—has potential to blossom in 2016. In the past, marketers have “tried to be visible everywhere in the digital world but were seldom standouts”. To steal a march on their rivals, brands need a “unified ecosystem of experiences under one enriching brand story”, he said.

    That represents a new canvas for shoppable content, stated Mindshare’s Sathaporn. “People will move more quickly from seeing to shopping”.

    As Thai advertisers compete to reach multi-tasking, ad-avoidant consumers, the type of content that will stick are reality shows, singing contests and other international content formats adapted for Thailand, said Sathaporn, who expects the domestic advertising industry to grow by only three to six percent in 2016—a lower growth forecast than 2015 amid economic uncertainties.

    So, even as Thailand’s king ails and its economy slithers, advertisers may be able to rely on mobile and content for continued joy.

  • Lotte in joint e-commerce venture in Indonesia

    Lotte in joint e-commerce venture in Indonesia

    Lotte Group is planning a joint effort to enter the e-commerce market in Indonesia, which has a population of almost 250 million people.

    The company plans to start building up the e-commerce venture with Indonesia’s biggest conglomerate, the Salim Group, during the first half of this year and expects to be in full operation by early next year.

    According to the Korean retail giant on Sunday, the deal was agreed when Lotte Group Chairman Shin Dong-bin met with Anthony Salim, the chairman of Salim Group in Singapore on Friday, during the Asia Business Council meeting.

    Lotte hopes to secure a strong foothold in the e-commerce market in one of Southeast Asia’s biggest markets by employing an omnichannel retailing strategy and establishing a stable delivery service by utilizing the existing networks Lotte’s and Salim’s offline stores. Lotte has one department store in Indonesia but has 41 retail stores. Salim Group has 11,000 Indomaret convenience stores.

    The Korean retailer said it also plans to introduce selected products that are popular in Korea to the Indonesian market.

    Under Chairman Shin, Lotte Group has been aggressively expanding its overseas businesses and Indonesia has been considered one of its key strategic markets.

    The Korean retail giant first got involved in the Indonesian market in 2008 when it acquired 10 chain stores of the Dutch discount store Makro.

    The advance into e-commerce comes as Indonesia’s online market has been growing rapidly. The country’s online market, which is estimated to have been about 3.2 trillion won ($2.5 billion) in 2014 is expected to expand to about 25 trillion won by 2020. This is largely due to the growing internet distribution, which already has exceeded 30 percent of its population.

    Smartphone distribution, which speeds up the growth of e-commerce, was 21.3 percent in Indonesia as of 2014.

    This figure is expected to reach 40 percent by the end of this year as faster LTE service was adopted last year.

    The Salim Group is Indonesia’s biggest conglomerate that is involved in wide range of businesses from food, distribution, telecommunication, media, automobile manufacturing and property development. It is most famous for its instant noodles Indomie. Additionally Salim Group’s logistic company Indomarco ranks No.1 in Indonesia.

  • Apple Pay’s China Launch: Who Will Win Over Chinese Luxury Consumers’ E-Wallets?

    Apple Pay’s China Launch: Who Will Win Over Chinese Luxury Consumers’ E-Wallets?

    With an optimistic plan to take on entrenched Chinese mobile payment rivals, Apple Pay made its move into mainland China on Thursday this week in hopes of making the country its biggest market.

    While some experts doubt the prospects of Apple’s high-tech payment system to compete with local giants including Alipay and WeChat, luxury retail is taking notice of the method. On the date of Apple Pay’s launch, Lane Crawford announced that all of its mainland China locations will offer Apple Pay, making it one of the first retail locations in the country to offer the service. “Offering Apple Pay as a payment option to our customers is another important step towards an even stronger connected commerce strategy, constantly evolving and leveraging on the digital and mobile world which is vitally important in Asia,” said Lane Crawford President Andrew Keith in a press release.

    The launch allows China’s only credit card company UnionPay, which has teamed up with Apple Pay, to take on Alipay and Tencent’s TenPay as they compete to win over Chinese consumers’ e-wallets.

    Limited to the iPhone, some experts are saying Apple Pay faces an uphill battle in China as local mobile options have already become incredibly popular. In addition to the fact that Apple will have to take on local giants, experts have found that many Chinese netizens are wary of Apple Pay for a variety of additional reasons. Online comments suggests that many are suspicious of giving their bank card number to a U.S. company and show a preference to earn interest from Alipay. Meanwhile, Apple Pay doesn’t have built in “shopping app” features and discounts found on Alipay and WeChat Wallet, including WeChat’s direct link to dining app Dianping.

    But as the iPhone remains a luxury status symbol for Chinese consumers, Apple Pay could possibly find a niche among affluent urbanites, depending on whether or not more retailers like Lane Crawford choose to make it available.

    The development of this competitive landscape is of equal importance to luxury retailers not only in China, but also abroad, which are scrambling to keep up with payment methods most popular with Chinese tourists. Many international luxury retailers now offer UnionPay, but a growing number of them are allowing Chinese customers topay with Alipay or with WeChat, giving them an advantage over those who haven’t moved past UnionPay. Regardless of whether or not Apple Pay manages to catch on with China’s jet-setting iPhone owners, retailers across the world will need to up their payment technology to keep up with their Chinese VIPs’ preferences.

  • China e-commerce huge opportunity for British merchants

    China e-commerce huge opportunity for British merchants

    New research says almost half of the UK’s top online retailers are failing to capitalize on China’s burgeoning e-commerce market. E-commerce service provider Global-e reports that British companies are significantly missing out on a marketplace that’ll be worth $1.5 trillion within four years.

    Chinese shoppers love doing it online. Buying big brands from around the world, It’s global, China’s Centre for Economic Exchange anticipates online retail will account for 30 to 40 per cent of world trade in less than a decade. E-commerce entrepreneur Amir Schlachet says most firms see that as a huge opportunity.

    “Most of them actually do realize that China is an important market. It’s close to a trillion shoppers online. Very open to the world. It’s already around half of the online population actually buying cross border.” said  Schlachet.

    Recent research by market research company Emarketer backs him up, claiming nearly 45% of people in China shop on overseas websites. And the internet shopping giant Alibaba offered further evidence with figures for 2015 indicating a revenue rise of more than 30 percent. However, while many UK retailers have seen the online potential, to others claims Schlachet are failing to take advantage.

    But global’s also local and the trick to getting into the Chinese online market baffles some. Shoppers in China want websites in Mandarin; prices in Renminbi the local currency and payment using local systems such as Tenpay.Union Pay and Alipay. So, while shops in Britain go out of their way to welcome Chinese shoppers, researchers at Global-e found traders needed help online.

    It’s all a barometer of how globalization is changing the way we go shopping, but at the same time it’s a real indicator of how new businesses can start up to take advantage of that.

  • Apple Pay to go live in China on February 18

    Apple Pay to go live in China on February 18

    Apple Inc’s Apple Pay mobile payment system will be available in China from February 18 for Industrial and Commercial Bank of China Ltd (ICBC) customers, bank representatives said in social media posts on Tuesday.

    The technology giant had previously said the system would launch in China in early 2016, making it Apple Pay’s fifth country as it accelerates development of a planned new revenue stream. ICBC is China’s biggest lender by assets.

    An Apple spokeswoman declined to comment on ICBC’s posts on the projected launch. The lender is set to be joined by a raft of peers: Apple’s China website lists 19 Chinese lenders as official Apple Pay partners, and state media reported two other lenders will also go live with the service from February 18.

    Greater China is Apple’s second-largest market by revenue, but the company faces an uphill battle to match that prowess quickly in mobile payments.

    Apple Pay’s beginnings have been less than auspicious in other markets, including scepticism from retailers in its home market. But in China, Apple Pay’s issue will be how to compete with dominant and entrenched players, serving shoppers well used to paying for goods and services with their handsets.

    China is the world’s biggest smartphone market. By the end of 2015, 358 million people, more than the population of the United States, had already taken to paying by mobile phone, according to the China Internet Network Information Center.

    Dominating those payments are China’s two biggest Internet companies: social networking and gaming firm Tencent Holdings Ltd and e-commerce company Alibaba Group Holding Ltd , through its Internet finance affiliate Ant Financial Services Group.

    Tencent operates WeChat Payment, while Ant Financial runs Alipay.

    Apple Pay has also struggled to gain traction with banks in some countries. In Australia, the four main banks are holding out against the new entrant. The company in Britain faced resistance from big banks over fees before relenting.

    Earlier on Tuesday, China’s state radio reported on its website that China Guangfa Bank Co Ltd and China Construction Bank Corp said on social media they would also launch Apple Pay on Feb. 18.

    A China Construction Bank spokesman declined to comment, while Guangfa could not be reached for comment.

  • e-money transactions reach Rp5.2 trillion

    e-money transactions reach Rp5.2 trillion

    Electronic money (e-money) transactions conducted in the country in 2015 reached Rp5.2 trillion in value, up from Rp4.3 trillion in 2014, Governor of Bank Indonesia(BI) Agus Martowardojo said.

    “In 2009, electronic money transactions were valued at about Rp520 billion only, and now they have reached Rp5.2 trillion,” the central bank governor said while opening the National Non-Cash Movement (GNNT) in Kupang, the provincial capital of East Nusa Tanggara (NTT) here on Saturday.

    Agus said the non-cash transaction system, either using prepaid cards, credit cards or electronic money, is very useful because it makes the financial system more efficient.

    With non-cash transactions, the state could reduce the use of banknotes and coins, making transactions more efficient and saving money on printing currency.

    “We are convinced that the non-cash system would be safer, more practical and more efficient,” Agus said.

    After all, the non-cash payment system can be used widely, such as while purchasing cellular phone minutes, shopping at malls or paying electricity and tap water bills.

    He said the e-commerce and non-cash transactions are predicted to continue to increase.

    “Non-cash payments could also be for online-transactions, resulting in efficient usage of time and economizing,” he added.

  • Thai fashion e-commerce goes from rags to riches

    Thai fashion e-commerce goes from rags to riches

    WearYouWant’s site has 500 fashion merchants offering some 14,000 products. The company plans to release a native mobile app next month as 50% of its website traffic comes from mobile phones.

    The online fashion sector in Thailand is drawing massive interest from global players eager to cash in on one of the fastest-growing markets.

    Competition in the interactive fashion stores is expected to be more intense this year, says Thai fashion marketplace WearYouWant.

    But it will be increasingly difficult for newcomers to find a place in the Thai market because existing players have established a strong foothold here, said Julien Chalte, co-founder and co-chief executive of WearYouWant, a four-year-old website.

    E-commerce accounts for about 1% of retail sales in Thailand but the market is expected to see steeper growth this year.

    Mr Chalte said e-commerce was an immensely motivating sector because of its versatility.

    Thai consumers are very conscious of shopping behaviour both offline and online, so it is essential to provide the best and widest selection of products, good prices and efficient delivery, he said.

    WearYouWant’s site has 500 fashion merchants including boutiques, distributors and brands that offer 14,000 products.

    Online merchants can sell directly to consumers but delivery is handled by the site, which earns revenue through commission on purchased products.

    WearYouWant secured Series B investment funding of US$3.5 billion last September, led by the leading fashion e-commerce player in Japan, Start Today, which operates Japan’s largest fashion e-commerce portal Zozotown.

    Mr Chalte said Bangkokians were no longer driving the growth of online fashion shopping.

    “The fastest-growing provinces are Nonthaburi and Chon Buri, and the trend seems to be continuing into 2016,” he said.

    WearYouWant plans to release a native mobile app by March because 50% of its website traffic comes from mobile phones.

    The company will also introduce new feature apps including an image recognition engine that allows user to take a photograph of an item in a store and instantly be presented with a good offer on the same or similar product.

    The trend this year will move towards more mobile payment options, but cash on delivery will remain the preference.

    Mr Chalte said the average age of the company’s customers was 32. They mainly live in Bangkok, with 65% of customers female.

    Customers spend an average of 3,000 baht on the website. Beauty products remain the best-selling product, with clothing, shoes and accessories experiencing significant growth.

    In 2015, WearYouWant’s annual revenue rose 200% from 2014, with a 150% hike in turnover generated by mobile devices.