Asia E-Commerce Giants – How They Continue to Innovate Post-COVID
By : Terence Ng
E-commerce platforms in Asia are racing to adapt to the heightened competition due to increasing online shopping penetration brought by covid-19 pandemic . It is no longer sufficient that e-commerce platforms introduce flash sales and shopping festivals – they need to offer even more in times of a crowded marketplace or otherwise they risk losing customer loyalty .
In this article , we discuss three themes that e-commerce platforms in Asia are adopting in order to continue innovation to remain relevant since covid-19 , including continuous improvement on the fulfillment space , diversifying product offerings and expanding region coverage . We also discuss an interesting theme at the end – airlines ’ foray into e-commerce .
Continuous improvement on the fulfillment space
Recognizing that consumers have greater expectations on logistics efficiency , Cainiao Network , the logistics arm of Alibaba , announced in August 2021 that it enhanced Lazada ’ s cross-border logistics efficiency by + 50 %, and has launched logistics facilities to support local exporting SMEs . With the accelerated logistics channel , customers in Thailand , Singapore , Malaysia and the Philippines are now able to receive parcels in as quickly as three days after placing an order on Lazada ’ s platform . The new process will help merchants to save up to ten hours for the first mile delivery , and avoid up to three days of delay during peak shopping seasons such as Double 11 , according to Cainiao .
Grab , on the other hand , works with Vietnam ’ s local authorities to help meet food demands during lockdown through offering their app platform for free to deliver necessities to people in high-risk areas across Ho Chi Minh City .
Diversifying product offerings
Covid-19 has led to more people working from home and spending more time at home . Through recognizing this trend , Carousel started to focus on growing the home services category further in Singapore , Hong Kong and the Philippines , and even launched a dedicated home services page in
Singapore to make it easier for users to search for popular services and read in-house content on how to select certain services . Carousel is also exploring to roll out the home services page initiative for Hong Kong soon .
On the other hand , JD . com will start offering 24 / 7 online consultation services through videos , pictures and texts through JD Pet , JD . com ’ s one-stop services offered to pets , starting August 18 . Pet owners can enjoy up to 30-minute online consultation services provided by professional and practicing veterinarians via videos , pictures and texts . JD Pet is the first platform to offer video consultation services in the Chinese pet industry . JD . com claims that the initiative stems from the painpoint of increasing complaints from pet owners about seeking medical help from offline pet hospitals .
Expanding region coverage
E-commerce platforms are no longer content with their sales growth in Asia – they want to further expand into other continents in order to expedite overall sales growth . For instance , we see Shopee setting to offer free shipping throughout Mexico and listing items such as electronics , clothes , toys and home goods . This comes after Shopee launched an online shopping portal in Brazil in October 2019 .
Airlines Foray into E-Commerce
It is also interesting to see that apart from e-commerce platforms upping their innovations , airlines are also foraying into e-commerce through launching their own e-commerce arms . For instance , AirAsia launched its food delivery services across Malaysia since March 2021 in attempt to make it become one of Southeast Asia ’ s leading super apps . Apart from venturing into e-commerce , AirAsia also forays into fintech and logistics as part of plans to develop a super app anchored on travel and leisure to compete with Southeast Asia ’ s tech giants such as Grab , GoTo and Sea Group .
On the contrary , Singapore Airlines ( SIA ), Singapore ’ s national carrier , has started offering live online shopping when the KrisShop ecommerce platform first became accessible on the KrisWorld inflight entertainment ( IFE ) system since June . SIA claims to be the first airline to offer such an integrated platform . The service will initially be available on selected Airbus A350 aircraft , and will progressively roll out across the SIA network . Customers will enjoy duty free prices on orders that are either delivered on their next Singapore Airlines flight , or choose to have their purchases delivered directly to their homes .
According to Yeoh Phee Teik , Singapore Airlines Senior Vice President for Customer Experience , SIA recognizes e-commerce as the future of shopping , and launches such initiative to demonstrate its commitment to continuously innovate and enhance its product and service offerings , and augment the travel experience for their customers .
ABOUT THE AUTHOR :
Terence is a Retail and Tech Analyst at US-based multinational research firm Coresight Research , focusing on custom research projects for US-based retail-tech startups . Over the last nine years he has worked at multiple market research firms including Nielsen and Ipsos as well as at HKSAR government and Hong Kong retail giant AS Watson . Terence started his career as Assistant Consultant in Cimigo .
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