Lazada’s Digital Commerce Confidence Index reveals that seller confidence has remained elevated throughout 2021, signaling a strong year ahead for the digital commerce industry
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SINGAPORE, January 27, 2022 /PRNewswire/ — Southeast Asian sellers are adapting to a new era of omnichannel retail, according to results from Lazada’s 2021 fourth quarter Digital Commerce Confidence Index (DCCI). Although the last quarter of the year saw greater mobility and the return of foot traffic to brick-and-mortar stores as COVID-19 restrictions ease, nearly half (47%) of online sellers said they experienced a more than 10% increase in sales over the past of the same period.
“We found that in the last quarter of 2021, people were spending less time at home and increasingly visiting physical and leisure outlets. This trend, compared to the success of the online shopping festival season year-end shows that today’s consumers are taking a more mixed approach to retail than ever before, shopping online and offline in a way that meets their needs, adds value and provides convenience,” noted Magnus EkbomLazada Group Strategy Director.
The study, now in its third installment, also showed that amid the pandemic and ongoing uncertainties, sellers remained confident throughout 2021, with an optimistic outlook on their sales performance. 70% of respondents in the first half of 2021 expected at least a 10% increase in sales in the following quarter, followed by 76% in the third quarter of 2021 and 74% in the latest report for the fourth quarter of 2021. This clearly indicates that even in the absence of major shopping festivals, online sellers remain resilient.
Conducted in Q4 2021 with 1,126 online sellers from across South East Asia participants, the latest report also revealed that 76% of sellers said they would further increase their inventory by at least 10% in the first three months of 2022.
Additionally, as consumers gradually adapt their shopping habits to include a mix of visits to physical outlets, as well as shopping online for convenience and value, sellers of different product categories are optimistic about how this will translate into a to augment in sales. Notably, with the majority of the region’s workforce adopting a hybrid work setup, combining both work-from-home arrangements and office travel, it’s no surprise that fashion sellers (75%) and electronics (73%) categories were the most optimistic about their expected increase in sales over the next three months.
Businesses are aware of the need to strive to entice more customers to buy online, while ensuring that their products remain competitively priced, and many recognize the benefits of online platforms when It’s about attracting, retaining and engaging consumers through initiatives such as shoppertainment. Consistent with their sentiments earlier in 2021, in the Q4 2021 study, 59% of sellers surveyed cited attracting more online traffic from buyers and 54% said increased price competition was one of the two main growth opportunities in the first quarter of 2022.
Chong Hin Ng, co-founder and CEO of Asia Insight, said: “Today, the customer buying journey is much more complex: customers are increasingly switching between physical and online channels. This same trend applies to all product categories, including purchases of cosmetics, fashion, even food and groceries. While this behavior isn’t exactly ‘new-new’, it has been elevated by the stay-at-home economy during the pandemic. Therefore, to be more likely to win customers, brands need to integrate online and offline experiences across a range of touchpoints and leverage technology to recreate a ‘human touch’ in the digital space. “
DCCI is the first study of its kind that seeks to map trends in digital commerce by indexing the sentiments and trust levels of Southeast Asian online sellers. It measures business confidence based on surveys comparing the opinions of online sellers in South East Asia (Indonesia, Philippines, Thailand, Vietnam, Malaysia and Singapore). In Q4 2021, Lazada surveyed 1,126 sellers about their current online sales performance and their expectations for their digital commerce business in the future. The index ranges from 0 to 100, with 0 being “very pessimistic” and 100 being “very optimistic” on the spectrum.
About Lazada Group
Founded in 2012, Lazada Group is the leading e-commerce platform in South East Asia. We are accelerating progress in Indonesia, Malaysia, The Philippines, Singapore, Thailand and Vietnam through trade and technology. With the largest logistics and payment networks in the region, Lazada is part of the daily lives of our consumers in the region and we aim to serve 300 million customers by 2030. As of 2016, Lazada is the South East Asia Alibaba Group’s flagship platform powered by its world-class technology infrastructure.
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SOURCE Lazada Group