Lazada Thailand is seeking to increase revenue from LazMall, a premium-brand-focused feature of the e-marketplace, as brands rush to online platforms in the wake of the coronavirus pandemic.
The number of brands on LazMall has jumped threefold since the outbreak, said Lazada, in which Chinese e-commerce giant Alibaba owns a controlling stake.
Lazada also set up a LazMall pop-up store at Siam Center to provide an offline and online experience for customers.
"After almost two years of LazMall, which is the first and largest virtual mall in Thailand, operating successfully with 6,000 brands and 2,000 official stores, this is the future of Lazada's business as more brands and retailers are migrating online," said Jack Zhang, chief executive of Lazada Thailand.
He was speaking at a press conference about the upgrade of LazMall. The revamped LazMall comes with new interface designs to support customisation, which could help brands increase awareness and customer engagement.
Mr Zhang said LazMall has been improved to bring a new shopping experience to users who can discover more brands and increase sales opportunities for brands.
The upgrade also paves the way for a virtual shopping mall for LazMall.
"Online shoppers will be able to look for products like they are walking through each floor of a department store," said Thanida Suiwatana, chief business officer of Lazada Thailand.
The platform uses a data analysis algorithm to help customers find products during their shopping journey, Ms Thanida said.
LazMall's "co-campaign" strategy has been applied to match users with cross-brands through data technology and market insights, she said, adding that the move will help draw new buyers and market segments.
For example, skincare brand Biotherm Homme was paired with electronics giant Philips to offer products to customers.
Lazada earns revenue from LazMall through a commission fee and other payments, such as advertising.
Ms Thanida said the number of brands on LazMall has surged by three times from normal conditions, and so has average spending on the platform.
"We have set aside a marketing budget to promote LazMall for the first time," she said.
LazMall in June booked 160% year-on-year growth for product sales, 130% growth for orders, a 600% jump for brands and a 110% rise in buyers.
LazMall aims to double the product assortment by year-end, focusing on sporting goods and home products.
LazMall promises 100% authentic products, fast delivery and 15-day product return.
Lazada is also ushering in the Lazada On Ground concept, featuring a physical showcase of more than 40 top brands on the LazMall platform. The first pop-up store is at Siam Center, which will integrate the offline and online experience for buyers.
According to Ms Thanida, LazMall will work with merchants to lower product prices and offer smaller product sizes to ensure lower prices on the platform in the face of a sluggish second-half economy.
"We are aware that shoppers will tighten their budgets in e-marketplaces, but we do not think LazMall will be affected," she said.
The biggest customer group of Lazada is those aged 18-35, followed by 35-45.
Average time spent on the app is up 30% from the norm, due to the pandemic.
