 |
| Chang announces that RedMart will be on Lazada from March 15. |
The Lazada Group has announced it will ramp up its supermarket business in Southeast Asia as part of plans to accelerate its growth to become the region’s biggest e-commerce ecosystem.
The first country to experience the supermarket transformation is Singapore. when homegrown online grocer RedMart, acquired by Lazada in 2016, moves onto the Lazada platform on March 15. This means that shoppers will be able to buy groceries and fresh produce along with Lazada’s other product categories on one single platform. This will boost Lazada’s grocery and supermarket offering to more than 165,000 products, the largest assortment yet offered by any grocer in Singapore.
The new moves are aimed at catering to the soaring demand of supermarket shopping as consumers increasingly buy their groceries online. The grocery market in Southeast Asia is expected to be worth US$309 billion by 2021, with shoppers filling their baskets online more than twice a month. In Singapore, seven in 10 people who buy their groceries online already do so on RedMart.
Lazada’s new grocery push signifies its ambitions to unlock the vast potential in the online grocery shopping, said Jing Yin, Co-president of Lazada Group. "Not only are we going to do it, we are going to do it right," he said.
“We want to drive the evolution of grocery shopping in the region by combining our unparalleled assortment of products and superior logistics network to transform the way customers get their daily essentials and fresh produce,” said Jing. “Most of us shop for groceries and other household items very frequently. This presents a unique opportunity for Lazada to be part of our daily lives.”
In Singapore, the new RedMart will feature a similar design, tools and functions to the existing RedMart App and website. Users can expect the same shopping experience – from browsing to the ordering process, including the My Lists and Past Purchases features.
At the same time, they will also enjoy the ease and convenience of shopping on a single platform. This includes having the option of completing their transactions from other Lazada stores at one go and having more payment options at their disposal, including the Lazada Wallet.
Orders on the new RedMart on Lazada will continue to be fulfilled by RedMart in customers’ chosen two-hour delivery slot between 7 am and 10 pm, seven days a week including public holidays, while orders with other Lazada sellers will be fulfilled separately.
James Chang, CEO of Lazada Singapore, said: “This is a significant milestone for us. Together with RedMart, we have the best talents, operational infrastructure and an even bigger base of committed sellers and brands to create the best supermarket shopping experience for Singapore shoppers.”
Spearheading Lazada’s foray into the supermarket business in Southeast Asia is RedMart co-founder Roger Egan, who has been appointed Lazada Group Head of Supermarket. As part of his regional role, Egan will oversee the expansion, launch and operations for Lazada’s supermarket business and delivery network across the region.
He noted that the grocery is the largest retail category in the world and the least penetrated online - under 3% shop for groceries online in Singapore, and less than 1% do so in Southeast Asia. He also identified trust and reliability, availability and quality of service as the three pillars governing RedMart's push for excellence against physical supermarkets.
“RedMart’s move onto Lazada is just the first step in our ongoing journey to be a game changer in the online grocery market, and become the region’s most trusted supermarket and e-commerce platform as customers increasingly shop online,” said Egan.
"It's very clear that our customers are looking for a wider assortment," he said, noting that RedMart customers had been increasingly buying non-food items offered, while Lazada customers had been going for grocery items.
RedMart customers will still be able to shop on the existing RedMart app and website until 14 March 2019, 11.59pm. Thereafter, customers are encouraged to download the Lazada app to continue enjoying fresh and frozen food items and other daily necessities delivered to their doors. There will be promotions and vouchers for customers to help them "make the leap of faith", executives said.
The request to opt-in to the Lazada experience has begun and will continue to 14 March. Those who do so will have their data and preferences ported over to Lazada mid-March.
"It's just the same as buying on the RedMart app," Chang said, while Egan noted that the opt-in process is necessary so that "customers fully understand this change is happening and they're signing up to this change". "It's important that customers let us know this is what they want," Egan said.
Elsewhere in the region, Lazada is looking to launch its grocery and supermarket business in at least one other city 2H19. While the RedMart move occurs now because there is already an understanding of localised needs, the company does not assume that lessons are immediately applicable to other countries.
Explore:
View pictures of the announcement on Facebook
