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Lazada growth fuelled by m-commerce

E-commerce platform Lazada has seen a surge in mobile app downloads across the region, which have grown 75 per cent since December 2014, its latest stats highlighted.

The company has now reached 11 million mobile app downloads across the region, experiencing more than three million app downloads in Q1 of 2015, following the launch of the Android app in June 2013 and the iOS app in January 2014.

With nearly seven million LINE followers, Lazada is also actively engaging with consumers via mobile messaging applications.

According to Google’s Consumer Barometer 2014 report, smartphones (85 per cent) are the most commonly used mobile devices in Singapore, as compared to computers (74 per cent). This mobile-first consumption changes the way consumers now browse and shop online.

Key markets such as Indonesia are predicted to surpass 100 million smartphone users and become the fourth largest smartphone population worldwide by 2018, according to e-marketer figures.

Lazada has experienced strong revenue growth in the past year, which has in part been driven by the growth in mobile traffic to the site. Rocket Internet’s 2014 Annual results showed that for Lazada the gross merchandise volume had increased 305 per cent over the past year from 94.8 million in 2013 to 383.8 million in 2014 whilst net revenues increased 104 per cent from 75.5 million in 2013 to 154.3 million in 2014.

The surge in mobile traffic to Lazada’s website is due to an increase in Lazada’s assortment expansion – active SKU’s increased more than 50 per cent since December – and the wider trend of mobile usage in the region.

Speaking about the findings, Martell Hardenberg, CEO, Lazada Singapore said, “Certainly mobile shopping is more convenient and hassle-free, and that is why we think it’s bucking traditional shopping trends when it comes to gender. With an average time spent per session by mobile app shoppers being under seven minutes, it clearly beats travelling out and navigating the crowd in physical malls.”

The most popular product categories shopped on the Lazada mobile apps in April 2015 across Southeast Asia were mobile & tablets, health & beauty and home & living.

Across all six countries Southeast Asian counties where Lazada operates, the biggest group of mobile shoppers are within the 25-34 age group (average 45 per cent on Android; 51 per cent on iOS). This is followed by the 18-24 age group (average 22 per cent on Android; 24 per cent on iOS) for all countries except Singapore (16 per cent on Android; 17 per cent on iOS). The number of shoppers age 45 and above are comparable among all countries (average 10 per cent on Android; 7 per cent on iOS) with Singapore having a higher variation (14 per cent on Android; 10 per cent on iOS).

Men are trumping women in mobile shopping in Indonesia, Vietnam and, to some extent, Singapore. There are more male than female shoppers in:

  • Indonesia (58 per cent male versus 42 per cent female on Android; 56 per cent male versus 29 per cent female on iOS).
  • Vietnam (59 per cent male versus 40 per cent female on Android; 55 per cent male versus 44 per cent female on iOS).
  • Singapore (52 per cent male versus 47 per cent female on Android; 49 per cent male versus 48 per cent female on iOS).

According to the figures, iOS shoppers spend the most time at 7.2 minutes on average versus 6.5 minutes on Android. Philippines shoppers spend the most time on the site at 8.5 minutes on iOS and 7.3 minutes on Android, while Singapore shoppers spend the least, at 5.4 minutes on iOS and 5.1 minutes on Android.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.