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Tag: ecommerce

  • Alibaba’s 618 Mid-year Shopping Festival targets Specific China Regions

    Alibaba’s 618 Mid-year Shopping Festival targets Specific China Regions

    Alibaba Group has launched this year’s 618 Mid-year Shopping Festival from Taobao and Tmall, allowing brands and merchants to tap into China’s less-developed regions with 1.5 million new products and multiple promotions.

    This year’s festival aims to engage customers in emerging cities, counties and villages across China. To do so, Taobao and Tmall are boosting promotional resources to elevate excitement and help brands reach this rapidly growing market. Altogether, more than 200,000 brands and retailers will participate in the shopping event.

    The shopping event officially started on June 1 and will continue though June 18. Within the first hour, from midnight to 1am, gross merchandise volume (GMV) exceeded that of the first 10 hours last year. And at 11.23am, less than 12 hours after the start, total GMV surpassed last year’s full-day figure.

    Branded products are so far proving extremely popular. Top brands like Apple, Xiaomi, Haier, Aux, Midea, L ‘Oreal, Lancome, Nike and Adidas each notched more than RMB100 million in sales in the first hour. Among them, Apple sold over RMB100 million worth of products in two minutes and 45 seconds, while Midea and Nike both hit that mark in four minutes.

    “In addition to rising discretionary spending, consumers in China’s less-developed regions are becoming more-sophisticated shoppers who are looking for lifestyle upgrades,” said president of Taobao and Tmall Jiang Fan. “This increased consumption potential could mean bright prospects for our merchants. People in these areas might have less access to physical shopping facilities than those in big cities, and this year we are working closely with our partners to address their needs and offer them the same good quality products on our platforms with innovative and fun programs.”

    The number of people living in smaller cities and rural areas accounts for nearly 70 per cent of China’s total population, according to Chinese market-research firm Analysys. These consumers are catching up with first- and second-tier markets in valuing quality over price. Tmall’s figures also show that more than half of the sales generated on its Luxury Pavilion comes from customers outside China’s first- and second-tier cities.

    In view of this trend, Taobao and Tmall are leveraging Alibaba Group’s ecosystem and technology and an array of marketing channels and tools to build momentum from early June. Key initiatives to offer opportunities in fast-growing markets and enhance customer engagement include:

    Tmall product debuts – About 1.5 million products will debut on Tmall during the festival with customers enjoying heavyweight promotional offers on these items. Many were developed by brands on an accelerated cycle, thanks to consumer insights provided by Tmall. In addition to deals on the 1.5 million new products, brands are offering millions of other products at a discount. All products are available to consumers nationwide, but brands are paying special attention to the needs and desires of customers in lower-tier Chinese cities.

    Flash Sales – Alibaba’s flash sales channel, Juhuasuan, allows brands to offer deep discounts to reach new customers in fast-growing markets. Juhuasuan will organise dozens of 618-themed group-selling campaigns featuring must-buy items recommended by brands. Statistics show that Juhuasuan is a tried-and-true channel for brands to attract first-time buyers. Since last year, 80 per cent of the transactions for branded goods through Juhuasuan were from new customers, and nearly half were from lower-tier cities.

    Taobao Livestreaming – Few marketing tools have proved more effective than livestreaming for brands to introduce and recommend 618 products to potential consumers in less-developed regions. Last year, sales generated by Taobao Livestreaming exceeded RMB100 billion. This year, US brands, including Stadium Goods, the streetwear and sneaker resale store backed by LVMH Luxury Ventures; Korean beauty brands, like Laneige and Innisfree; and Japanese cosmetics brands Shiseido will host livestreams for 618.

    Daily Deals – This channel on the Taobao app provides special offerings directly from manufacturers and is highly popular among consumers from less-developed areas in China. Equipped with insights from consumer preferences and behaviors, manufacturers are able to adjust their production processes on a real time basis to meet consumer demands. These manufacturers will introduce 100,000 promotional items for the 618 celebration.

    With a reach of 654 million annual active consumers in China, strong technical support and in-depth market knowledge, Alibaba’s ecosystem is offering a strong growth potential for brands.

    Alibaba Group’s annual results this year reflect that growth potential, with more than 70 per cent of the more than 100 million new active users added during the year ended March 31, 2019 coming from less-developed cities.

  • Reebonz launches buy-back guarantee Program in Thailand

    Reebonz launches buy-back guarantee Program in Thailand

    Online luxury marketplace Reebonz has launched a guaranteed buy-back program in Thailand.

    The service, which applies to leather goods and jewellery, gives customers a guaranteed price that the company will pay to buy back products initially sold on its platform.

    Customers will be offered currency, called Reebonz Credits, that can be used for future purchases on the platform.

    Pre-owned jewellery from selected brands such as Chanel, Harry Winston, Hermes, and Christian Dior, among others, will be eligible.

    Daniel Lim, Reebonz co-founder and CPO, said the company hopes to further expand its services across new geographies and categories, giving customers even more ways to engage with the brand. “We truly believe we can be a one-stop ecosystem for everyone’s luxury needs.”

    The guarantee is now available in Singapore, Hong Kong, Taiwan, Malaysia, Australia, Indonesia, and the US.

    Headquartered in Singapore, Reebonz is a C2C platform that allows customers to buy and sell their pre-owned items to a community of more than 5.5 million members.

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  • RedBalloon parent’s newest brand targets purpose-driven customers

    RedBalloon parent’s newest brand targets purpose-driven customers

    Naomi Simson’s Big Red Group has partnered with US experience retailer IfOnly to launch the brand of the same name in Australia.

    Like RedBalloon, Big Red Group’s flagship website, IfOnly offers a range of experiences that customers can buy online, from cooking classes to archery lessons to chopper tours of the Yarra Valley.

    The difference is that every listing on IfOnly benefits a cause, with up to 80 per cent of the proceeds going to an associated charity.

    The decision to launch IfOnly in Australia reflects consumers’ rising interest in supporting businesses that do good, according to Big Red Group co-founder Naomi Simson.

    “People in Australia are choosing [based on] what an organisation stands for, not just what it sells. They want to believe that they’re using their consumer dollar for good,” Simson said.

    This trend, sometimes referred to as conscious consumption, is part of the experience economy, which is defined by consumers’ interest in having experiences over buying things.

    “We know there’s a trend of access over ownership, there’s a trend of sustainability. There’s a slight melding, an overlap, between this and the experience economy, but they’re not yet one and the same thing,” Simson said.

    IfOnly taps into several of these trends by combining unique experiences with charitable causes. The site offers a range of experiences with local and world-class experts, celebrities and other noteworthy personalities, from ultra-luxury, bucket list-type offerings to more accessible special outings, with a portion of the proceeds from every experience going to a charity of the luminary’s choosing.

    Some of the listings include a 5-day stay and rhino conservation experience with Kevin Pietersen at the Umganu Lodge in South Africa, which costs $190,000 for eight people and benefits Care for Wild Africa, a meet-and-greet with popstar Ariana Grande and VIP tickets to her Sweetener tour, which costs $5,223 and benefits the GoodCoin Foundation, a $150 donut decorating class with Morgan Hipworth, which benefits the Australian Red Cross, and a $250 private archery lesson from Australian Olympian Alec Potts, which benefits the Movember Foundation.

    “Yes, there are celebrities and thought leaders, but really it’s a groundswell of incredible artisans that are using their skills for good,” Simson said.

    “The experiences don’t all have to be expensive…it’s not about being elitist, or unattainable,” she said.

    More than 20 local charities are set to benefit from the purchase of experiences on IfOnly, including Cancer Council, R U OK?, Starlight Children’s Foundation, OzHarvest and The Sony Foundation.

    Simson herself is offering a $1975 private whisky lesson on a vintage cruiser in Sydney Harbour to support the Cerebral Palsy Alliance, which she is a governor of.

    “My role is to be an ambassador and to raise funds, but there are limited ways to do that. [IfOnly] provides a way for luminaries to support chosen charities,” she said.

    According to IfOnly CEO John Boris, the website has raised millions of dollars for charities in the US and is looking forward to doing the same in Australia through its partnership with the Big Red Group.

    “By combining the Australian experiences market leader with the leader of premium experiences in the US, we are able to bring our unique offering to new audiences and support more causes,” Boris said in a statement about the launch.

    Big Red Group plans to build awareness about the new brand by unlocking access for Australian residents to enter a global sweepstakes to win an experience with The Who and Pearl Jam’s Eddie Vedder at Wembley Stadium in London this July.

    Simson said the company does not plan to promote IfOnly to RedBalloon’s customer database.

    “Just because one person buys something on RedBalloon doesn’t mean they will be an IfOnly customer. We can’t presume they want to hear about it,” she said.

    “Nobody wants to be bombarded with something they didn’t ask for. It’s about respect.”

    The launch of IfOnly follows Big Red Group’s acquisition of the adventure-focused experience marketplace, Adrenaline, in November 2018.

    The company’s brand portfolio now includes RedBalloon, Adrenaline, IfOnly, Marketics, the exclusive distributor of ‘Albert’ AI in Australia, and Redii, a platform to reward employees.

    As a $100 million company, Big Red Group is the largest online aggregator of experiences in Australia and the third largest globally, according to HitWise’s 2018 research.

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  • Swee!’s celebration of Singaporean culture through creative branding lands RedMart global brand award recognition

    Swee!’s celebration of Singaporean culture through creative branding lands RedMart global brand award recognition

    Swee!, a hyper-local brand under the Private Label umbrella of RedMart, Singapore’s leading online grocery retailer, has been awarded Gold in the New Brand category at the 2019 Vertex Awards. The annual Vertex Awards celebrates and recognises the best in private brand packaging design across the globe.

    Other Gold Award winners this year include renowned overseas retailers such as Woolworths Supermarkets in Australia, 7-Eleven in the US, Sobeys in Canada, Albert Heijn and SPAR in the Netherlands, El Corte Inglés in Spain, and German supermarket chain Aldi.

    Launched in February 2018, the Swee! brand is a celebration of Singaporean tastes and preferences, offering entry-level, everyday groceries and household items ranging from oyster sauce and sesame oil to sausages and scourers for Singapore shoppers. It is one of three brands under RedMart’s Private Label range, along with RedMart Label and World’s Cellar. Launched in May 2015, the three brands together house more than 320 products across 13 categories, all sold exclusively on RedMart.

    Richard Ruddy, Chief Retail Officer and Head of Grocery for Lazada Singapore, said, “We launched our RedMart Private Label range in May 2015 with the aim of delivering value for money to customers with no compromise on quality or innovation. Since then, the range has grown by leaps and bounds – we have experienced 80 percent year-on-year growth and more than tripled our Private Label revenue since June 2017, and almost 50 percent of RedMart shoppers now buy RedMart Private Label products.”

    Nupur Agrawal, Private Label Lead at RedMart, said, “We are thrilled to receive this award with Anthem Singapore for RedMart’s Swee! Label, which is under our Private Label umbrella. We will continue to expand our offerings to provide Singapore grocery shoppers with the best product range and quality regardless of price point, as well as look for ways to enhance the online-to-offline experience, such as through innovative and iconic packaging designs.”

    Anthem, the global creative agency responsible for Swee!’s packaging design, was challenged by RedMart to deliver a brand story with local relevance and ultimately attract more traditional shoppers who are more comfortable buying from their regular brick-and-mortar supermarket. RedMart and Anthem’s goal was to create a brand proposition that connects with the local consumer and answers their need for a range of simple, fit-for-purpose items.

    Spencer Ball, Creative Director of Anthem Singapore, said, “It is a proud moment seeing Swee!, a brand born out of Singapore’s heartland, being honoured on the world stage. This is a perfect example of the shared belief in a simple, strong idea, from a talented creative team and a bold client.”

    As a strictly online brand, packaging presentation and branding is paramount. RedMart and Anthem collaborated to create a brand with a ‘chirpy’ personality, but with a familiar simplicity. Drawing on inspiration from Singapore’s heartland, with a nod to the utilitarian aesthetics of high-rise public housing estates and the unpretentious language of the neighborhood wet market, Anthem landed with the brand name ‘Swee!’ – a Hokkien expression that roughly translates to ‘works perfectly’. Since its debut on RedMart, the line has continued to grow with a diverse range of products.

    Anthem is known for choosing to collaborate exclusively with retailers and brand owners who share their company values in ensuring the highest quality products. The brand development partnership with RedMart was a great fit, as RedMart’s Private Label is built on stringent quality guidelines with a deep commitment to supporting sustainably and responsibly sourced products.

    Anthem, part of SGK group, had previously won Vertex awards for other projects. This year, the group has also won Gold Vertex Awards for the work developed for Woolworths Supermarkets.

    The 2019 Vertex Awards received a record number of entries from 33 countries representing the absolute best in packaging design from across the globe.

    RedMart is fully owned by Lazada Group, Southeast Asia’s leading eCommerce and shoppertainment platform.

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  • Online fashion retailer Mogu reports Steep Growth Numbers

    Online fashion retailer Mogu reports Steep Growth Numbers

    Chinese online fashion and lifestyle retailer Mogu has reported an 18.7 per cent increase in gross merchandise value (GMV) for the year to March 31, to RMB17.408 billion (US$2.594 billion).

    The company’s revenue for the year reached RMB1.074 billion (US$160.1 million), an increase of 10.4 per cent year on year.

    However the number of active buyers in the year to March remained the same as the previous year, at 32.8 million.

    The company said it live-video broadcast business continued to grow strongly with associated GMV increasing 138.1 per cent year on year.

    “We delivered another quarter of solid growth,” said Qi Chen, Mogu’s chairman and CEO. “During the past quarter, we continued to expand, optimise and elevate the supply chain for our fashion ecosystem by enriching content, increasing user engagement on our live-video broadcasts, and facilitating more repeat repurchases,” he said.

    “Looking ahead, we will continue to strengthen our unique three-way fashion ecosystem by further growing our content creation community of fashion key opinion leaders and live-video broadcast hosts, elevating the fashion-product supply chain and supporting deeper collaboration between merchants and KOLs, and ultimately facilitating greater user and community engagement through rich and high-quality interactive fashion content and products.”

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  • Amazon cutting prices on thousands of online items

    Amazon cutting prices on thousands of online items

    Amazon Australia is holding its second mid-year sale, slashing prices on tens of thousands of products from Friday, May 31, through the month of June. The deals include up to 50 percent off select clothing, shoes and accessories from brands such as Calvin Klein, Berlei and Bonds; discounts on select TVs, video games and books; and 15 percent off household and pantry essentials when you spend $50 or more.

    Savings are advertised across all of Amazon’s 29 product categories, including kitchen, baby and pets.

    “With tens of thousands of products available at discounted prices and new deals going live every day throughout June, we hope our Mid-Year Sale provides something for everyone,” Rocco Braeuniger, country manager of Amazon Australia, said in a statement about the sale.

    Since launching in December 2017, Amazon Australia now claims to offer over 125 million products.

    This is the second time Amazon Australia has held a mid-year sale, joining many retailers in marking down stock for End of Financial Year (EOFY) sales during the month of June.

    Recent research from PayPal shows that EOFY sales are the most popular times for Aussies to pick up a bargain online, alongside Boxing Day.

    That same report also revealed that while some retailers are starting to move away from markdowns, most shoppers are still driven to purchase by discounts.

    PayPal found that 68 percent of Australian consumers are always on the lookout for an online sale or discount, and half of the consumers have waited for an item to go on sale before buying it online. Among Gen Z and Gen Y shoppers, that figure increases to 73 percent and 65 percent, respectively.

    But this doesn’t have to be bad news for retailers. According to PayPal, online sales present an opportunity for brands to build awareness and reach new customers: 39 percent of consumers have bought a brand online they wouldn’t usually buy because it was on sale, and 39 percent of retailers said online sales increase revenue.

    But it’s necessary to take a strategic approach. For instance, Amazon’s biggest sales – including its Mid-Year Sale, Prime Day sale, and Black Friday and Cyber Monday sales – are all about driving app downloads and Prime subscriptions. In turn, this drives more frequent purchasing on the platform.

    According to Retail Dive, Amazon saw more than 1 million consumers use its app for the first time on Prime Day 2018.

  • Online Spending on local sites strengthens

    Online Spending on local sites strengthens

    Spending on local online sites has strengthened, helping boost the country’s total online retail sales over the three months to April by 7 percent over the previous corresponding period.

    Spending on New Zealand sites is continuing a recent strong run, seeing an 11 percent increase over the three months to April 30 compared to the previous corresponding period.

    Continued strong growth in the food, clothing, electronics and department store categories was seen as the driving force.

    “Growth in online spending on food is particularly strong and is emerging as a key reason for stronger growth rates at domestic sites versus international,” said Gary Baker, director of institutional research at Bank of New Zealand.

    Baker said the country is continuing to see softer growth rates for purchases from offshore sites, which over the last three months were only 2 percent higher than in the same period the previous year.

    “One influence is the NZ dollar, which is tracking around 7 percent lower versus the USD than it was a year ago, making offshore purchases more expensive for Kiwis,” Baker said.

    “This will reduce spending if a fall in purchase volumes more than offsets the effect of paying higher prices.”

    According to Baker, another influence on the softening growth rates from spending in offshore sites is the ongoing maturation of the online channel.

    “In recent years we have seen online growth rates ease from double-digit levels and slowly trend down,” he said. “Online growth rates still exceed those of physical stores, but the gap is reducing.”

    In some categories, however, purchases from offshore sites are continuing to grow very strongly, such as in computers and entertainment media.

    Total online retail spending over the three months to April 30 was 7 percent higher than the previous corresponding period.

    Annual online spending across the retail categories covered is running close to $4.6 billion, excluding GST.

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  • HKairportshop.com offers ‘world’s fastest airport pickup’ for Ecommerce Shoppers

    HKairportshop.com offers ‘world’s fastest airport pickup’ for Ecommerce Shoppers

    Hong Kong International Airport’s one-stop online-shopping platform HKairportshop.com is making orders purchased via the platform ready for pickup at the airport 90 minutes after the purchase is made – including duty-free hard liquor.

    The e-commerce platform brings together more than 3000 products including popular makeup and fragrances, travel exclusive collections, wines, electronic goods, souvenirs and HKIA’s exclusive smart luggage tag MyTag – which alerts passengers of their arriving bags when paired with the HKG My Flight app.

    The site is now offering travellers who spend more than HKD1000 (US$127.40) on the platform a saving of HKD200 ($25.48) when they use the promo code “UP200” from now till June 30.

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  • Global food e-commerce sales forecasted to Triple

    Global food e-commerce sales forecasted to Triple

    A new report has forecasted global food e-commerce sales to nearly triple through 2023, rising to US$321 billion and accounting for nearly 5 percent of total e-commerce revenues.

    The Global Food E-Commerce report, released by market research firm Packaged Facts, projects the Asia Pacific region will account for the majority of absolute growth, primarily due to the rapidly expanding Chinese market.

    China dominates regional e-grocery activity in part because of the country’s large urban population and rapidly expanding the middle class. In addition, much of China’s large population has access to high-tech devices and the ability to shop online, due to the country’s position at the forefront of technological development and electronics.

    Last year, more than 75 percent of global food e-commerce sales were concentrated in the top five markets: China, the US, Japan, the UK, and South Korea. In each of these countries, e-grocery spending is highest in large urban centers, where many retailers have focused their marketing efforts for home delivery or click-and-collect services.

    The report states that through 2023, demand growth in these countries will be driven by five key factors: increasing comfort among existing online shoppers in making routine grocery purchases online; growing use of subscriptions and memberships with online retailers; greater penetration of broadband internet in rural and remote areas; greater acceptance of (and investment in) home delivery, click-and-collect, and drive order fulfillment formats in an increasingly omnichannel retail environment; and improvements to data security that ease consumer fears about having their personal information stolen while shopping online.

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  • BukaGlobal boosts its regional expansion Growth

    BukaGlobal boosts its regional expansion Growth

    Indonesian e-commerce platform BukaGlobal has launched in Singapore, Malaysia, Brunei, Hong Kong and Taiwan.

    Developed by Bukalapak, the platform will connect 4 million Indonesian sellers to the global market. At the moment, products sold on the site include health and beauty items, pantry lines and handicrafts from only qualified sellers in Jakarta and Tangerang. More sellers are set to join progressively.

    Customers in five countries can order products starting from 500gm with delivery time usually six to 11 days, depending on the destination.

    “We want to break down barriers that hinder young and small entrepreneurs from competing on a global playing field, primarily on access, infrastructure, and connectivity,” said Fajrin Rasyid, Bukalapak’s co-founder and president.

    “With BukaGlobal, Indonesian products are readily accessible by consumers anywhere in the world through a fast and reliable platform.”

    Fajrin said Bukalapak chose Singapore and the other four markets as there are many Indonesians there and the people in these countries understand Indonesian culture.

    The firm is working with Singapore startup Janio for end-to-end cross-border logistics.

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  • Amazon Helps Deliveroo with $835m in funding round

    Amazon Helps Deliveroo with $835m in funding round

    Deliveroo on Friday announced it is looking to raise US$575 million ($835 million) in a Series G funding round, bringing its total investment to date to US$1.53 billion ($2.22 billion).

    Amazon is set to be the largest investor in the round, alongside existing investors T. Rowe Price, Fidelity Management and Research Company and Greenoaks.

    The food delivery company said it will use the capital to grow the tech team at its UK headquarters, expand its delivery reach to add new customers and continue to innovate its delivery-only kitchen concept, Deliveroo Editions.

    The company also plans to develop new products to give customers a more personalized experience, increase support for its restaurant partners and provide riders with new tools for flexible and well-paid work.

    “This new investment will help Deliveroo to grow and to offer customers even more choice, tailored to their personal tastes, offer restaurants greater opportunities to grow and expand their businesses, and to create more flexible, well-paid work for riders,” Will Shu, founder, and CEO of Deliveroo, said in a statement about the funding round.

    Shu said he was looking forward to working with Amazon.

    “Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organization.

    The company said the investment will benefit restaurants, by helping them grow their business, and riders, by giving them more work. Deliveroo has been a leader in offering perks and protections in the emerging gig economy.

    Deliveroo in Australia last year partnered with Whitelion to help long-term unemployed young people to work and collaborated with Open Classrooms to give riders free access to hundreds of online courses for professional development.

    “We’re impressed with Deliveroo’s approach, and their dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options,” said Doug Gurr, Amazon UK country manager.

    “Will and his team have built an innovative technology and service, and we’re excited to see what they do next.”

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  • Zara’s local profit after E-commerce Launch

    Zara’s local profit after E-commerce Launch

    Inditex Group’s Australian business, Group Zara Australia, posted a 35 percent increase in net profit for the year ending January 31, 2019, lifting the figure from $8.9 million to $12 million, according to documents lodged with the Australian Securities & Investments Commission.

    This came off the back of strong sales growth, with Zara’s full-year revenue in Australia grew 10.5 percent to $311.7 million, up from $282 million in the previous corresponding period.

    This is due in part to the launch of Zara’s local e-commerce site in Australia and New Zealand in 2018, which opened up a new sales channel for the business and gave more customers the ability to shop with the fashion brand.

    Zara’s parent company Inditex launched online stores in a further 106 markets in November last year, which led to a group-wide online sales increase of 27 percent to $5.19 billion (€3.2 billion) – contributing 12 percent of group net sales for the year.

    Zara had 21 stores in Australia on January 31, 2019, including 19 Zara and two Zara Home stores.

    In a statement about its full-year earnings, Inditex highlighted the growing risk fast fashion brands face of being perceived by stakeholders, including customers, employees, shareholders, suppliers and society in general, as unsustainable.

    The retail giant noted that it was ranked as the ‘most sustainable company in the global retailing industry’ by the Dow Jones Sustainability Index for the third straight year based on the progress it has made in its environmental strategic plan and laid out various initiatives it is undertaking to lessen its impact on the planet.

    These include gaining greater control over the materials used in the creation of its products, reducing the amount of water used in its supply chain and using energy efficiently.

    Additionally, in September of last year, Inditex piloted an at-home pick-up service for recycled garments in China, an initiative that is already operating in Spain, though has yet to make it to Australian shores.

    Inditex is far from the only fashion retailer tackling the issue of sustainability. The Iconic recently launching Considered, an initiative that allows customers to more easily filter products based on their own personal values, such as sustainable materials, eco-production, fair production, animal-friendly, and community engagement.

    Swedish fashion retailer H&M has also committed to add more information to its website to allow customers to understand where its products come from – a move to create greater product transparency.

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  • Alibaba buys into furniture chain Macalline

    Alibaba buys into furniture chain Macalline

    Alibaba has invested US$640 million in Red Star Macalline Group, the largest furniture retail chain in China. Signalling a renewed interest in the home improvement business, Alibaba made the investment in the form of convertible bonds issued by Macalline’s controlling shareholder. The transaction will see Alibaba taking a 10 per cent shareholding of Macalline’s Shanghai listing if fully converted. Alibaba has also taken 3.7 per cent of Macalline’s Hong Kong-traded shares.

    The investment will see emerging cooperation in the furnishings business between the two parties, a move that follows several other plays into the lucrative sector by the e-commerce giant.

    Macalline currently has 364 stores in almost 200 cities.

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  • E-commerce Boom in Vietnam: The Rising Tiger

    E-commerce Boom in Vietnam: The Rising Tiger

    Vietnam can be truly called a land of opportunity for domestic and foreign e-commerce companies. Its young population, high Internet penetration rate and rising smartphone penetration rates play the key role here, making the country one of the most promising for e-commerce activities in the region.

    South-East Asia’s Surge in E-commerce

    According to the report Asia-Pacific B2C E-Commerce Market, over one half of total global online retail sales happens in the Asia-Pacific region. Based on the analyses it is concluded that over 50% of all the online shopping for retail goods and services takes place in the Asia Pacific region, and South-East Asia accounts for about 40% of the e-commerce market of the region.

    Southeast Asia is definitely a new big e-commerce hit, and the region is currently a very attractive market for big players involved globally in the e-commerce sector and smaller local companies. At a reflection point of Internet penetration and mobile devices rapid spread, the population of Southeast Asia is quickly adapting its behaviors to take advantage of new purchasing products and services online opportunities.

    According to the latest e-Conomy Southeast Asia 2018 report from Google and Singapore-based Temasek, the digital economy in Southeast Asia is on track to hit $240 billion by 2025, which is $40 billion more than previous estimates. The key factors are the most engaged mobile internet users in the world, as well as industries like ecommerce, online media, online travel and ride-sharing, which grew at never-before-seen rates.

    Flourishing Market

    There are currently 35.4 million e-commerce users in Vietnam, with an additional 6.6 million users to be shopping online by 2021. These 42 million e-commerce users will represent 58% of the total population. That’s why there is no wonder that throughout the last 5 years Vietnam is showing a constant rise in percentage of online shopping transactions.

    E-commerce market value in Vietnam from 2014 to 2020 (in billion U.S. dollars)

    Vietnam e-commerce Association (VECOM) reported that Vietnam’s e-commerce

    growth rate of some specific areas is explosive. For the online retail area, information from thousands of e-commerce websites showed that revenue growth rate in 2017 increased by 35%. For the payment area, the national Payment Corporation of Vietnam (NAPAS), in 2017, the volume of online domestic card transactions increased about 50% compared to 2016, while transaction value increased to 75%. For the online marketing area, the growth rate of some affiliate marketing companies in 2017 reached from 100% -200%.

    Vietnam’s e-commerce market has witnessed high growth rate since 2013, with online sales increasing from US$2.2 billion in 2013 to US$6.2 billion in 2017, averaging an annual growth rate of 20%. Little surprise there, as affiliate marketing sales constituted about 15% of the total sales, which sounds quite intriguing. About 80% of local brands rely on affiliate programs.

    The most popular products sold online included clothing, footwear and domestic (59%), electronic devices (47%), and household appliances (47%), among others, while payment and delivery methods have been used flexibly by enterprises.

    Moreover, the government has stepped in to try and usher in a new era of commerce. Vietnam’s legal framework and policies, especially Decree No.52 on e-commerce, have played a key role in creating favorable conditions for high growth rate of the retail e-commerce market.

    The decree aims to ensure fairness between e-commerce and traditional commerce, of which enterprises operating in e-commerce must comply with laws and regulations in equal to that of traditional one.

    Local Players Hit It Big

    Vietnamese e-commerce platforms Tiki, Thegioididong and Sendo entered the list of ten most visited sites in Southeast Asia by iPrice Group. Tiki, Thegioididong and Sendo ranked sixth, seventh and eighth, respectively, by average monthly web traffic. The top two leading positions took international corporations Lazada and Shopee, respectively.

    According to iPrice’s data on the Vietnamese market, Tiki, Thegioididong and Sendo made huge improvements in 2018 leading to attracting both user traffic and investment.

    Tiki is the fastest-growing retail company in Vietnam and has all the chances to be an industry winner. Their monthly website traffic increased by 80% within only six months, which took them from the fourth highest position among e-commerce websites in Vietnam to second place by December and the first place by monthly visits in April 2019, leaving international corporation Lazada on the second place.

    Similarly, Sendo.vn also grew by 55% in monthly website traffic within a period of six months and maintained a healthy fifth place in Vietnam, one rank behind Thegioididong. No wonder, it’s affiliate program is also one of the most rewarding in terms of revenue for the publishers.

    The most surprising entry to this list was Thegioididong. With focus on only one product category – electronic devices, the retail company still managed to gain an average of 29 million visits per month, according to the report.

    Although the leaders of the market are still Lazada and Shopee, which operate successfully in multiple markets, the three Vietnamese e-commerce companies’ inclusion is very remarkable, and is definitely a strong evidence of the size and potential of e-commerce in Vietnam.

    Affiliate Marketing Opportunities

    E-commerce success brings also a bunch of great affiliate-marketing offers. Sendo is definitely one of the most attractive ones. Up to now, more than 80,000 shops have been operating on Sendo.vn, offering a diverse range of products with over 5 million products from clothes to tech accessories. In 2018, Sendo.vn, the e-commerce subsidiary of FPT Corporation, also received $51 million from the Japanese SBI Holdings and other investors. After several effective improvements backed by investments, it is not hard to assume the retail will keep growing for sure.

    Besides from solely local market players, big international companies such as Lazada or Shopee are definitely still in the top in terms of revenue.

    Lazada is the pioneer e-commerce store in Southeast Asia. Present in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam it brings over 135,000 local and international sellers and more than 3000 brands online to serve more than 560 million customers which are increasing by the day. To counter Shopee’s expansion in Southeast Asia, Alibaba decided to invest another US$2 billion in Lazada to improve the company’s competitiveness, which actually gained the goal.

    Anyone who wants to eat a piece of pie and promote the Vientamese e-commerce giants like Lazada, Shopee, and Sendo, can join their official affiliate programs at Indoleads.com, one of the leading affiliate networks in Asia-Pacific.

    Investing paradise

    Vietnam is a true hotspot for investors from around the world. The burgeoning eCommerce market in Vietnam has attracted major investors from Japan, Germany, the United States, Korea, China, and Singapore. With six companies invested in Vietnam’s eCommerce market (BEENOS, CyberAgent Ventures, econtext Asia, SBI Holdings, Sumitomo Corporation, Trancosmos), Japan tops the list of foreign countries with the highest number of investors in Vietnam. In 2017, Japan invested a total of $9.1 billion in Vietnam, taking over Korea ($8.5 billion) and ranked as the largest foreign direct investment (FDI) country in Vietnam. The largest investors in Vietnam’s eCommerce market also include tech giants, venture capital firms and investment companies such as Alibaba, Tencent, Temasek Holdings, Dragon Capital and IDG Ventures Vietnam. Besides, Germany and the US are two countries outside of Asia that are actively invested in Vietnam’s eCommerce market.

    Forecasts

    With an explosive 33% compounded annual growth rate over the past two years, Vietnam ranks high among the fastest-growing e-commerce markets in the region. Its market has a great potential and it has already proved it within the last couple of years, so there is definitely no point in being skeptical. Based in the US Frost & Sullivan consulting firm forecasted that the E-Commerce market in Vietnam will reach a value of $3.7 billion by 2030. According to the Department of E-Commerce and Digital Economy, by 2020 an average online spending per person will reach US$350 annually.

    This e-commerce surge might be a great opportunity for many international and local players, as well as affiliate marketers. Indoleads.com, one of the leading affiliate platforms in South-East Asia, has an access to 500+ direct affiliate programs from over 60 countries around the globe that opens up a geography for local players to Asian, Brazil, US, UK markets.

    The key point of success of such worldwide e-commerce leaders like Zalora, Americanas, Amazon, Shein, Ssence, AliExpress, Lazada, Shein, Tokopedia, is affiliate sales. Register at Indoleads.com as a publisher to be a part of these top affiliate programs.

     

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  • Suning invests in Jack Ma-backed retail Fund

    Suning invests in Jack Ma-backed retail Fund

    Chinese retailer Suning has invested US$129 million into Jack Ma-backed Yunfeng Capital’s third fund.

    The funding represents 61.41 per cent of a committed $210 million to the private equity firm, which is set to raise $2.5 billion and has so far received commitments from 51 limited partners (LPs).

    The company stated that the funding will give it the opportunity to “deepen its smart retail strategy, further enrich the Suning ecosystem as well as achieve financial returns”.

    The firm is a current shareholder in Jack Ma’s e-commerce giant Alibaba, and vice versa.

    The Yunfeng Capital equity firm makes calculated investments in technology, media and communications, as well as a range of other consumer sectors.