Monday, July 29, 2013

Lazada: Helping the local Ecommerce grow

It was exactly last April of 2012 when Lazada mall came to the country. It is under Rocket Internet, which is owned by the Samwer brothers in Germany. Besides Philippines, it is also a venture available in other South East Asia countries. Since Ecommerce has a low competition and that we are on the phase of rising in economy. They known for launching a lot of ventures to different regions and have successfully established their other ventures. Shopping online in other countries is already pretty common and is already part of the lifestyle. The industry of Ecommerce in the Philippines before they arrived is growing slowly. Not having enough population who can purchase online definitely affects Ecommerce. Not all of us have decent Internet connection. As for the slow Internet connection users, it’s not entirely convenient on their end to shop online on Ecommerce websites. It’s one reason why Ecommerce had hard time on establishing their industry in the country.

Credit card owners are quite few in the country. Credit card payments are the usual accepted online payment by online stores. Unconventionally, Cash on Delivery or C.O.D. was introduced to the customers, allowing them to pay in cash instead of the conventional online payments. It actually changed the Ecommerce game in the country by allowing anyone to become customers. As of now, offline businesses are now transitioning to online as well. Online business suddenly had relevance to local businessmen after the Philippines’ Online Shopping Mall showed it to them. Ecommerce was never highly regarded initially as most of them failed to penetrate the local market. Even if we still had decent numbers of capable online shoppers, it still won't matter since they are not willing to. Online shoppers who can online the conventional way were actually afraid to expose their credit card details. Their situation didn't allow Ecommerce to grow as expected. Their growth rate was so low that other online businesses that launched initially in the country pulled the plug on their businesses here in the Philippines.

Online classifieds were the usual websites that commanded its presence to local online users. On the other hand, online shopping malls were deeply challenged in the online scene. It’s only normal for it to be that since not online business was never highly though off. What the Philippines’ Online Shopping Mall did to over come that was to allow full blown online market campaigns. It was very unlikely that you missed out all of their online marketing campaigns. Local online browsers quickly caught up their brand. What made them above their competition is that their customers were served with the full online shopping service. Free Delivery Availability accompanies their Cash on Delivery or C.O.D. payment method as well. It comes with manufacturer's warranty that traditional malls similarly offers. Recently, they made their payment method even more flexible by offering credit card installment thru BDO and re-opened PayPal payments on the online mall. It’s pretty surprising that they still manage to pull of surprises to us even if most of us are already sold on their online shopping setup with us.


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