Tag: Ecommerce

Ecommerce Insights

How Indonesian React to Work from Home Policy

WFH: IS WORKING FROM HOME A NEW NORM?

On March 11, the World Health Organization (WHO) officially declares the latest evolving novel coronavirus or COVID-19 as a global pandemic.

Earlier on March 2, Indonesian authorities had identified the first case within the borders, resulting in the Government’s responding policy to rapidly evolve whilst recommending “work from home (WFH)” policy along with other preventive measures such as temporary cease of business, taking leave, travel restriction, etc.

As of March 31, with the number of positive cases has reached 1,528 and the total death toll of 136, President Jokowi has declared COVID-19 a health emergency and imposes large-scale social restrictions.

From the previous BrandIQ report, we discussed how the COVID-19 situation shines the light on certain Ecommerce categories such as Health & Homecare, Groceries, etc. Southeast Asia shopping behavior has been shifting fast during the virus outbreak and staying home seemed to be the only way to get around it.

With WFH policy seems to be encouraged and enforced in Indonesia, we will walk you through the preparation of Indonesians we saw from their shopping habit.

ADAPTATION: INDONESIANS ARE GETTING REALLY GOOD ON WORK-LIFE BALANCE.

We use BrandIQ as a tool to collect data from 1st November 2019 – 26ht March 2020 on top categories related to work-life balance essentials to WFH. The variables include 11.11, 12.12 sales campaigns to display growth during the WFH period. However, Lazada Birthday on 27th March 2020 is excluded to reflect customer purchase behavior without steep discount influence.

Laptop is definitely not an everyday purchase; in fact, some might only buy a new one every half a decade. Nevertheless, growth in February purchase is fascinatingly reflective of the preparation of WFH policy. As essential as a laptop is for everyday operations, nevertheless, not every firm or business offers a laptop as personal equipment. One of our assumptions is small businesses making purchases for their employees to smoothen out the operation and maintain efficiency.

COVID-19 makes people read!! Yes! We finally crack the code on how to make people take up reading. Books sold massively in consecutive months. Staying home left us with not much to do so most of us find a way to occupy ourselves. Some buy recipe books, some read novels, and for those who can’t seem to relax with more time on their hands may have bought books for self-development in order to brush up new skills or further their careers.

Month-on-Month growth of categories related to WFH (period 1st Nov 19 – 26th Mar 20).

Working from home means you also have extra 2-3 hours a day. Yes, that is your daily commuting time from home-work-home if you live in the Greater Jakarta Area. This actually provides one essential life element, work-life balance, which we doubt Jakartans ever enjoy much. Some spend their leisure time shopping, some play games; and it seems to us that Indonesian loves to do both. Digital Games & Software and Digital Shopping Voucher have positive growth for consecutive months. Games top-up in March have dropped 100% Month-on-Month but this number is irrelevant when huge growth in February, 6900%, is the denominator. Online Game Top-up is a big thing.

Ultimately, working from home means you have to stay home. With the tropical climate in Indonesia, Air-conditioner has become a necessity. Most of the time, Indonesians can get away with the daylight heat because the office has an air-conditioning system or escape to the malls on weekends. COVID-19 eliminates our options and forces us to be at home on a wet-hot summer day. We see the growth from February and March for those who need a replacement for newer models or never had one installed.

BrandIQ is the first Ecommerce Analytics Platform to launch in Southeast Asia. The platform covers data collection from top regional marketplaces, spread over 6 countries.

STEREOTYPE: MEN CARE LESS ABOUT SKIN WHEN STAYING HOME.

BrandIQ also found distinct behavior between women vs men during WFH. The chart below displays the sales index of Skincare categories on both genders. We clearly see a trend of panic buying in February where everyone foresees the inevitable of COVID-19. However, buys of Men Skincare drastically drop in March while Women Skincare performs slightly better than in January. It rather resonates with gender stereotyping whereby men generally do not take care of their body and skin as much when they aren’t leaving the house.

Sales Index of Women vs Men’s Skincare from 1st Jan 2020 to 26th Mar 2020.

GROWTH: RAPID BEHAVIOUR SHIFTS INDUCE NEW REVENUE

As mentioned in our previous report, COVID-19 coincidentally promotes Ecommerce. However, in retrospect, the Ecommerce community is also making a tremendous effort to grow in this unfortunate event. The bubble chart below displays the share of new products – that has never been listed in a month before, against total sales of their own category. The recognition must be given to the community as they are very well responded to the situation by introducing brand-new products to the market in disastrous hours. 81% of Air Conditioner sales in March are new products as well as 60% and 93% of books in February and March, respectively.

Revenue Share of new product to shelf on 1st Jan 2020 to 26th Mar 2020.

There are lots of new brands and sellers emerging in Marketplaces during January to March 2020. “Gross” column displays total sales of new brands against the total of categories in the aforementioned period. Nonetheless, the nature of Laptop and Game Console & Software are very difficult to produce in pressing time hence, meager the growth.

DELAY THE INEVITABLE: New product listings strategy is possible in Indonesia because of the delay in the penetration of novel coronavirus. Neighbors such as Thailand, Singapore, and Malaysia had identified their first patients in late January, therefore Indonesian sellers are already running the business with anticipation when they have been hit and the outcome is as we’ve seen.

Until this moment, we should all accept that COVID-19 will change the way of life as we knew. Working from home could potentially become the new social norm. Work-life balance will no longer be just a word everybody takes for granted. Home entertainment might be the next big thing in the Ecommerce ecosystem.

Need assistance on locating market opportunity, gaining more insight on where you rank against your competitors?

Reach out to [email protected] to know how you can improve your ecommerce presence.

Ecommerce Insights

Fears of Virus Outbreak Open the Door to the New Adoption of Online Shopping

As people are trying to stay healthy and escaping virus outbreak, Ecommerce industry strive to its best to ensure that we are all kept virus free.

Amids COVID-19 crisis that wreak havoc to the world’s economy, one industry is standing above all to help people escape deadly virus and might change landscape of Ecommerce forever.

COVID-19, the official name for the latest emerging Coronavirus dubbed by World Health Organization (WHO), is feared to become a new pandemic. As of the beginning of March, the number of infected rises above 95,000, with more than 200 identified in Southeast Asia, particularly Singapore, Malaysia, and Thailand. Southeast Asia economy is inevitably driven by China where trades, transportation, and excursion are unavoidable from the alleged origination COVID-19, and unfortunately, we are expecting numbers of confirmed patients to grow significantly.

Impact of the outbreak on Southeast Asia

BrandIQ investigate the growth rate of the epidemic in various regions and found that Southeast Asia numbers are fairly suppressive. From the 1st of February to 5th March 2020, numbers of the confirmed patients only increase by 372% while in China, South Korea and Europe numbers are 582%, 47950%, and 19127% respectively.

Southeast Asian culture seems to involve limited human to human contact whilst westerner greetings are either handshake or kiss on the cheeks. Countries like Thailand and Singapore are also absorbing East Asian habit of wearing a mask in public (despite the main reason is to battling the region’s pollution level). This coincidentally helped slowing COVID-19 dissemination.

If you live in Southeast Asia, it is impossible to not notice the thinning visitors in malls these days, public transportations are also less crowded, and food delivery service such as GrabFood and Foodpanda are flourishing. GrabFood recorded 4 million orders in the first month of 2020 comparing to a total three million orders in 2019, supporting our hypothesis that consumers are preferring to stay home amidst the outbreak.

Online marketshare insights are provided by digital shelf on BrandIQ

BrandIQ dives into our Digital Shelf to determine reflective factors on Southeast Asia’s top marketplace from the first week of the outbreak until the beginning of March to see the impact on people’s purchase behavior. As anticipated, every category regards to self-cleaning, healthcare, virus protection has massive growth in sales.

BrandIQ is the first Ecommerce Analytics Platform to launch in Southeast Asia. The platform covers data collection from top regional marketplaces, spread over 6 countries.

We are responding to the outbreak and try to stay healthy

Thermometers revenue is growing 705% prior to outbreak period. It resonates consumers responsibility to ensure their safety and staying on offence. Hand Care including sanitizers & soup also experienced significant uplift. Overall every product related to virus prevention and protection are on positive Dollar Growth side.

When look closely we will see inverted Unit Growth on Groceries and Body Wash. This could be articulated by two plausible explanations; (1.) customers are willing to pay premium for better/high-end product during the outbreak period (to ensure cleanliness & safety) or (2.) sellers and merchants are taking advantage of the situation by raising and speculating price.

Dollar Growth vs Unit Growth (%) from Southeast Asia’s top marketplace during virus outbreak.

Mask & Filter Dollar Growth are undermined due to stock and product distribution backlog. The real reason behind significantly higher Unit Growth than Dollar could be explained by average order value. Southeast Asia, especially Thailand and Indonesia, has been the victim of PM2.5 since November 2019. The order value of filters is monstrous compared to a piece of mask. Prior to the outbreak, the filter is a dominant product, while during the epidemic – mask became a survival tool. Therefore, Unit Growth value is over-representation while Dollar Growth reflects production and distribution problems (Dollar Growth does not catch up to Unit Growth).

As of now, we are starting to see some level of surgical mask shortage whereby there are several news outlets reporting mask scarcity on both public & private health organization including hospitals and clinics. Some local SMEs aggravated and worsened this incidence by price speculating this lifesaving item. However, ecommerce leaders such as Lazada & Shopee have taken a step of responsibility to not condone such actions and began to take out, ban, and off-board sellers who taking advantage of this global catastrophe.

We put our health first and budgeting other expense

BrandIQ indexing outbreak period online shopping growth by selecting the categories that performed well during normal circumstances (Electronics, Beauty, Petcare, and Fashion) to compare growth index against Healthcare and Groceries products.

The number speaks for itself; Southeast Asian consumers are tightened up their personal expense. Both categories yield positive growths are COVID-19 preparation and protection item (food, medicine, health accessory). Extravagance items, for instance, beauty and fashion are inverted whilst unnecessities such as Mobile, Laptop & other electronics are receding to hibernation. Nevertheless, Alkaline batteries, as a subsidiary to Electronics, are growing 38% (Index +0.76) during the outbreak.

Online Shopping growth index during COVID-19 outbreak

Pet food and medical is expected to yield positive index

Through recent breaking news from Hongkong, a Pomeranian is tested to have “weak positive” immune for novel coronavirus.

“The Pomeranian’s owner was infected with COVID-19 but the dog itself was not showing symptoms,” authorities said.

Hong Kong has said residents should not kiss their pets after a dog tested ‘weak positive’ for coronavirus. Photograph: Jérôme Favre/EPA

However, the famous news outlet also warns the readers to adopt good hygiene practices for both humans and pets, therefore, we are also anticipating incline of pet care products sales via online channel.

Southeast Asia’s commercial landscape as we know might forever altered when consumers, who has been negligence of online shopping, has been forced to step into Online Shopping world. BRANDIQ team hope this crisis resolve quickly but until that time, please stay conscious, stay safe and follow official announcement from WHO.

Need assistance on locating market opportunity, gaining more insight on where you rank against your competitors?

Reach out to [email protected] to know how you can improve your ecommerce presence.

Ecommerce Insights

Lazada Hidden Gems Allows Big Brands to Boost Followers

As the trailblazer of ecommerce in Southeast Asia, Lazada is serving 560 million customers in the region, including 264 million Indonesian population.

How are Indonesian giants latently leveraging Lazada’s category listings to bolster LAZMALL fanbase.

At this moment in time, if you are not selling on Lazada, you should be. Ecommerce in Southeast Asia (SEA) has been soaring fast and the competition is fierce. Some sellers might find themselves depleting resources on counterproductive advertisements while some might have a better idea of how to spend money smartly. Whichever way, one of the most imminent and visible money printing machines in Southeast Asia is Lazada.

Inevitably, product visibility is key to success in Lazada as “Visits”, the alpha metric from Ecommerce 1.0 day, leads to conversion ergo…sales. The good news is LAZMALL sellers algorithmically gifted such privilege to boost Visits on Lazada automatically.

If you’re already a LAZMALL participant but you still feel like your Visits are low, this piece of research is for you.

The importance of store followers

When you think about it, follower manifests fanbase. A fan culture typically reflects credibility, popularity, and also act as social proof to influence others to follow you. Fame is measured by visibility, retention directly proportional to credibility, social proof would spread the word organically, and when people trust your products, your revenue will increase substantially.

Seller performance data points are captured daily to offer marketplace store analysis on Brandiq.asia

Traditionally, there are several ways to acquire more followers. You can either join the promotional campaigns set up every day, week, month by Lazada. By participating in this type of campaign, your store visibility will be increased.

Another way is to try to be creative and pump out attractive offers outside of Lazada’s ecosystem. Gamification or voucher giveaway to drive users towards the store and picking up followers.

Chart A: Top categories in Lazada.co.id against the number of followers of most followed brand in category.

Some might take an unorthodox approach and buy followers. It’s the fastest way towards building a fanbase. However, to assure that purchased followers will always be active to browse and buy (low churn rate), it’s advisable to only recruit followers from a site with a solid background and good reviews.

BrandIQ is the first Ecommerce Analytics Platform to launch in Southeast Asia. The platform covers data collection from top regional marketplaces, spread over 6 countries.

How big boys fishing for followers

The aforementioned techniques demonstrate tactics on how you & I, small practitioners, acquire our followers but brands do it differently.

Before we get to that, let us look at the number of store followers on each category leaders on Lazada.co.id obtained from Brandiq.asia.

Chart A: Top categories in Lazada.co.id against the number of followers of most followed brands in the category.

The graph exhibited arrays of the category with an equivalent number of followers; for instance, Mobile Phones, Camera & Drone, Home Appliances, Smart Devices, and Stationery & Craft had oddly display exactly 532,794 followers. Data Storage and Monitor & Printers’ numbers precisely match in second class, Bedding & Bath, Kitching & Dining were in the third group, and so forth.

We investigated thoroughly and detected some level of dependencies between product assortment of categories in the same class of arrays, e.g., Mobile Phones has some degree of relationship with Smart Devices so does Bedding & Bath together with Kitchen & Dining.

This peculiar finding has revealed to us the hidden gem of how Lazada accidentally gave big brands the upper hand on followers’ acquisition.

BrandNumbers of FollowersCategory listings
Xiaomi532,7945
Samsung394,7885
Realme272,1011
Converse206,5451
Planet Sports199,8262
OPPO199,7701
Eiger171,7664
Apple143,4555
Watsons132,3554
Megan by Sophie Paris122,9755
Philiips110,1022
MOJOYCE OFFICIAL STORE106,7361
Miniso Indonesia102,5809
Huawei100,3733

Chart B: Brands in Lazada.co.id with the number of followers > 100,000 against the number of categories that brands are listed on.

Chart B displayed the top 14 brands in Lazada.co.id with followers more than 100,000. 10 out of 14 (71%) have been listing their products at least on two or more major categories. The party consists the likes of Fortune 500 companies [Apple, Phillips], Chinese technology titans [Xiaomi, Huawei], and local dominant players [Planet Sports, Eiger]. By nature, these companies are furnished with massive resources to produce, distribute, price and promote more products. Subsequently, they dominate share of shelves whereby chance of being seen or discovered is induced.

Lazada categories are constructed by 12 main categories and enabled product tagging up to four subcategories. Mathematically, this is represented by a forest of twelve polynomial trees with maximum altitude of 5. Fortunately, a product (SKU) must commit to complete and unique path of a tree. Therefore, ‘the probability of product being view’ has simplified to a full path comparison. To Illustrate, a brand with extensive resources covering 3 paths, assuming one product placed on each category, will have probability of being viewed as high as 11x of a single-category seller (because product can either be tagged on 4 or 5 categories hence maximum probability is 5 times 3 subtracted by 4).

A forest of 12 Polynomial trees represents Lazada category structures.

Stepping closer to reality, these colossus ventures also facilitate favourable number of commodities. It cultivates the gap of product being viewed as opposed to smaller enterprises. For simplicity, a calculation can be expressed by the difference between number of products of the two and multiply by ‘probability of being view’. As brands’ PageViews growth exponentially combining with classic acquisition tactics (voucher, promo code), they are unstoppable. Imagine behemoth like Tesco with inundate product lines to cover all 12 categories, their probability of product being view is almost immeasurable.

Up to this point, we are uncertain whether companies and sellers are cognizant of such artifice. However, we as an advocate to data analytics community wishes to collectively share our fact and findings to flat out the playing field and takes retail analytics to the next level.

Benefits when working with store followers

1. Improve customer relationship

By signing up followers, Lazada allows store owners to communicate with fans through the newsfeed. One should capitalize on engagement with followers and convert them to long-term customers.

2. Increase product visibility

This is a chicken and egg issue, really. By signing up followers, you can guarantee Pageviews and vice versa.

3. Organically grow more followers

Everybody had to go through the pain when trying to grow user-based from zero to thousands because credibility is everything when it comes to social. Once the reputation is adequately established, you can expect a snowballing effect on subscriptions.

4. Run exclusive promotions to fans only

In this day and age, online retail has come down to “finding excuses to discount.”. Customers are price-driven and have become a promotion seeker. When you have to discount you might as well only do it for the fans.

5. Prepare for the future

Ecommerce has yet ceased to develop, including platforms like Lazada. We can undoubtedly anticipate a significant amount of support technology to improve features to assist sellers. Having followers is equivalent to owning customers. The future is imminent; make sure you communicate with them.

Need assistance on follower acquisition, want to know where you rank against your competitors and how you can improve your ecommerce presence? Reach out to [email protected].

Company Update, Press Release

aCommerce Launches BrandIQ to Help Brands Understand Online Shoppers and Increase Ecommerce Sales with Data

BrandIQ is the first SaaS solution that offers brands and retailers the most comprehensive ecommerce insights in Southeast Asia

Southeast Asia’s leading brand ecommerce enabler, aCommerce, introduces BrandIQ, the company’s new ecommerce measurement and analytics suite. BrandIQ will enable brands to understand and visualize more than 11 million SKUs across 600 brands and 160,000 sellers online across Southeast Asia, enabling global consumer brands and retailers to grow online sales and market share.

Read more

Company Update

aCommerce Forms Strategic Partnership with Fluent Commerce to Advance Omnichannel Strategy and “New Retail” for Retailers and Brands in Southeast Asia

aCommerce, Southeast Asia’s leading brand ecommerce enabler, and Fluent Commerce, the cloud-native order management company that allows omnichannel retailers to out-convenience competitors and offer their customers flexible fulfillment options, have signed a strategic partnership to bring together the best of ecommerce and omnichannel order operations.

Read more

#LifeataCommerce, Company Update

Get to Know the #aTeam – Magali Mercier, aCommerce Head of Production

Great images make an ecommerce site attractive. While having a well-developed ecommerce site is crucial, brands often overlook the importance of having professional images and product photos on its website. You could have a fast and responsive site and offer multiple products from your brand on a marketplace, but if the product images don’t look good, it doesn’t grab the consumers attention.

As a regional brand commerce enabler, aCommerce amongst many other factors gives detailed attention to product and website imagery. This helps clients to gain consumer trust, make their website or official store on marketplaces look good and attractive, and increase sales in the process.

Check out some interesting things that Magali Mercier, Head of Content Production at aCommerce shared with us as part of our ‘Get to know the #ateam’ series. Read more