ZALORAand the challenge of Fashion E-Commerce

in South East Asia

1) Ecommerce in SEA 2014

2) ZALORA Strategy on:- Products

- Operations- Marketing

Overview

E-Commerce SEA 2014

Despite high Internet penetration

And Booming Mobile Broadband Subscriptions

How to make fashion ecommerce grow ?

1) Sourcing (international brands, private labels, local designers)

2) Operations (local warehouses and delivery partners, localized production)

3) Marketing (strong knowledge of users behaviour, ads, pr, offline stores)

Assortment

1) International Brands (River Island, New Look, Mango, Fossil, Sephora)

2) Private Labels (ZALORA Collection, Ezra)

3) Local Designers (Jovian, Rizalman, Melinda Looi)

User Experience focus in the overall Strategy

- Quality over Quantity (limited styles, careful selection, content products)

- Curated Selection vs Traditional ecommerce long tail strategy (BreakPoint, Jeff Stibel)

User Experience focus in the overall Strategy

Time Spent / Bounce Rate benchmarks

Logistics and Payments

Wide choice of payment options

1. Cash on Delivery2. Credit Cards3. Bank Transfer4. Paypal5. iPay88 6. Other

Dream Delivery Times

1. Klang Valley: same day - 1 day2. West Malaysia : 1 day3. East Malaysia & Brunei: 1-3 days4. SG, HK, ID, PH, TH, VN, 1-3 days. Localized

operations for each country

Marketing

- Reach the right customer (high spender vs low spender / active customer vs inactive / muslim vs non muslim)

- At the right time- With the right channel (email, sm, app push)- With the right promotion (discounts /

muslimwear arrivals / brands new arrivals)

Understanding Customers Behaviour

Shopping times in SG

When to promote to your customers?

When to promote to your customers?Shopping times in ID

When to promote to your customers?Shopping times in MY

How to deal with Mobile growth?

- Mobile specific promotions (30% Revenue is coming from mobile, steadily increasing)

- Use the right timing (weekends, public

holidays, evenings)

How to acquire new customers?

- Traditional Online Advertising(Google / Facebook / AdNetworks) - Give users the opportunity to try for free

clothes from ZALORA through local partnerships

Leveraging the “Mall Culture”From Offline sales to Online through Pop Up Stores ( nc / media coverage / sales)

Leveraging the “Mall Culture”

1. Johor Bahru - 25th June / 25th July

2. Kuching - 15th / 30th September

3. Kota Kinabalu - 9th/19th October

Media Presence

Strong focus on - Events (Fashion Shows, Meet and Greet,

Pop Up Stores)- Celebrities Endorsement- Branded ContentResults in a average of 50-150 media mentions per month in Malaysia, 100-500 in SEA

Thank You