Lazada’s Online Revolution and the use of coupons

• E-commerce opportunities are growing exponentially in Indonesia and Philippines
• Malaysia and Singapore are more mature markets with lower rates of growth

COUPON e-commerce platforms Flipit.com and Voucherpedia.com.ph have put together an analysis of Lazada’s Online Revolution and its effect on e-commerce and the use of online coupons.

Following Alibaba’s 11.11 success in China, retailer Lazada launched the Online Revolution in SEA. Lazada’s Online Revolution will run over one month from 11.11 to 12.12 and is said to be the largest e-commerce event in SEA.

As more consumers head online and become more cautious about spending money, events such as the Online Revolution are starting to take-off along with the use of online coupons.

The most important points from Flipit and Voucherpedia PH’s Lazada Online Revolution and Coupons infographic are:

1. Market penetration and growth

• Indonesia’s online market penetration was 28% in 2015 and grew 6% in one year. 
• Philippine’s online market penetration was 44% in 2015 and grew 9% in one year.  
• Malaysia’s online penetration was 66% in 2015 and grew 5% in one year.   
• Singapore’s online penetration was 81% in 2015 and grew 2% in one year.  

2. The increase in traffic on Flipit.com during Lazada’s Online Revolution in 2015 compared to the previous period

• Indonesia: 135%
• Malaysia: 46%
• Singapore: 91%

3. Most popular products purchased at Lazada Online Revolution 2015

• Indonesia – Mobile phones and tablets, Pampers and infant formula
• Malaysia - Toys, kids and baby products, home and living products, fashion accessories
• Singapore – Mobile phones and tablets, home and living products, infant formula, beauty and fashion products
• Philippines – Mobile phones, baby diapers

4. Lazada coupons used the most during the Online Revolution 2015

• Indonesia - 12% off non electronics
• Malaysia - 10% off all products
• Singapore -10% off electronics

5. Conclusions

• E-commerce opportunities are growing exponentially in Indonesia and Philippines due to their relatively large markets with low levels of penetration and fast rate of growth.
• Malaysia and Singapore are more mature markets with lower rates of growth.
• The increase in traffic and sales experienced by Lazada also had a positive effect on online coupon sites like Flipit.com.
• Consumers in SEA largely purchase electronics and digital products when shopping online during the campaign period.
• The most popular coupons used are those offering a percentage discount off a particular category - eg. 10% off electronics - as opposed to a set monetary value, free shipping or free gift coupons.

Events like Lazada’s Online Revolution are drawing more consumers online in the hunt for a bargain, they are becoming more privy to online coupons and the saving opportunities that can be made.

Looking at Lazada’s Online Revolution projected sales, Flipit.com and Voucherpedia Ph are expecting a 3x increase in traffic for 2016.

Flipit.com international account manager Cyrielle Grosgurin said that this is an exciting period for the coupon market in South East Asia. Lazada’s Online Revolution is the largest event for Flipit.com and looking at previous years’ events, customers’ enthusiasm for Lazada coupons, and Lazada’s predictions for 2016, Flipiy.com expects traffic to increase over three times for the event. 
 
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