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Why Sell with Lazada Factsheet Bring Southeast Asia eCommerce Opportunity to Crossborder Sellers Agenda . Why selling on Lazada? . How to sign up on Lazada? . Selling on Lazada . Seller successful stories Strictly Confidential 2 eCommerce is booming in Southeast Asia Strictly Confidential 3 Untapped eCommerce Opportunities Only 3% Online Retail Penetration Rate • SEA: The world’s fastest growing internet region. • Expected to grow to more than US$200 billion by 2025 • eCommerce is the fastest growing at a whopping 32% annually HUGE POTENTIAL FOR GROWTH (ECOMMERCE SALES AS PERCENTAGE OF TOTAL RETAIL, %) CHINA 14% - 293 billion USA 14% - 270 billion SEA 3% - 6 billion Source: Bain & Co, Temasek Holdings & Google Strictly Confidential 4 3 Mega Trends in Southeast Asia Strictly Confidential 5 A Mobile-First Market SEA Higher than Global Average Source: We are social Strictly Confidential 6 Lazada Group Business Overview Celebrated our 4th anniversary in March 2016 COMPANY OVERVIEW LAZADA PRESENCE Lazada B2C • The leading online shopping and selling destination in Southeast China eCommerce market Asia position • Widest footprint in the region HK / Shenzhen • Launched in 5 markets in March 2012: Indonesia, Malaysia, the Sourcing hub Philippines, Thailand and Vietnam • Launched in Singapore in May 2014 • Headquartered in Singapore #1 #1 Philippines Vietnam • One-stop shop to access ~30 million products, sourced locally Pop: 108m and internationally, across more than 15 categories #1 Thailand Pop: 93m Pop: 68m • Created an end-to-end ecosystem enabled by best-in-class logistics and payment capabilities #1 Malaysia • Backed by the world’s largest retail commerce company – Alibaba Pop: 30m Group Singapore Pop: 6m Majority #1 Indonesia Pop: 254m investor Source: Company Information, IMF Database Strictly Confidential 7 Lazada Group – Crossborder Overview Meeting the growing popularity and demand of international goods in Southeast Asia Scalable solution for sophisticated sellers to access six markets with one contract Centralized account management via Seller Center Comprehensive customer support, including customer service in local languages at free of charge Superior logistics capabilities enable Chinese merchants to drop off their parcels at the LGS sortation centers in Shenzhen or Yiwu Source: Company Information Strictly Confidential 8 Lazada – A One Stop Shop - More than 15 product categories A wide assortment of products, from electronics to lifestyle; a one stop shop. Watches, Sunglasses Automotive & Gadgets Toys & Games Travel & Luggage & Jewellery TV, Audio/ Video Groceries Computers & Laptops Health & Beauty Gaming, Gadgets Sports & Outdoors Media, Music & Books Cameras Home & Living Baby & Toddler Fashion Mobiles & Tablets Home Appliances Source: Company Information Strictly Confidential 9 Lazada’s Seller Centre Enabling sellers to make the best decision ILLUSTRATED SELLER DASHBOARD Keeping local sellers updates on the latest news in the eCommerce A multi-functional and ecosystem powerful tool that empowers and informs sellers on their business with Lazada. Alerting the seller to what’s pertinent to their business; enabling them to sell better with Lazada Ensuring sellers don’t miss out on business opportunities Helping sellers to track their business performance with Lazada Source: Company Information Strictly Confidential Marketing through leading applications ~60 MILLION #1APP IN SEA APP DOWNLOADS SHOPPING CATEGORY MARKET LEADING DURING ONLINE REVOLUTION 2016 MOBILE PLATFORM... ● Improved customer engagement ● Awarded by Google Play “Top Developer App”. ● Featured on Apple App store's Shopping Category Best-in-class Android and iOS applications optimized site for all major browsers Innovative mobile marketing leveraging chat apps Source: Company Information, AppAnnie Strictly Confidential 11 Marketing – examples of large campaigns benefiting Sellers and Brands 5 Major Regional Campaigns per Year On-going Local Campaigns Tet / Lunar New February: Year ● Celebrate the lunar new year in SEA Lazada March: ● Celebrate Lazada’s birthday Anniversary ● Great deals for customers June: Ramadan ● Celebrate Ramadan with Lazada Typical Campaign Sales Uplift July: Superbrands ● Onsite showcase of Lazada’s best Daily Revenues brands Online November-December: ● Biggest sale of the year with mega Revolution days on 11/11 and 12/12 Normal Campaign Day Day Source: Company Information Strictly Confidential 12 12 Payments Lazada offers a wide variety of reliable payment options • Unsophisticated, with a significant of the payments through cash • Approximately 70% of residents do not have access to traditional banking services • Credit Card penetration in some markets is below 5% • To offer the best online shopping experience, Lazada offers multiple payment methods: • Cash on Delivery • Credit/Debit Card • Paypal/AMEX • MasterPass • HelloPay Source: Company Information, Mckinsey Strictly Confidential 13 Agenda . Why selling on Lazada? . How to sign up on Lazada? . Selling on Lazada . Seller successful stories Strictly Confidential 14 How to sign up on Lazada? What are the steps to create your shop? 2 4 1 3 5 Activate Payment Applicatio Get 1 SKU Seller Provider n Form Trained approved Center Sign Up* • Go to • You will receive an email • You will receive an email • You will receive an email • You will receive an email www.lazada.com/sell. entitled “Registration for entitled “Get trained and entitled “Lazada - Sign up entitled “Upload your • Complete your application Seller Center”. pass the test” and Link your first SKUs” form and upload a valid • Reset your password to • You can either (1) attend a Crossborder Payment • Upload 1 SKUs in your corporate Business activate your Seller live webinar or (2) watch Provider” Seller Center account, Registration document. Center account. interactive videos and • Sign Up to our payment follow the requirement • Sign e-contract pass our short test third party by providing the and have at least 1 SKU required documents approved by Lazada *Note that this step is not Quality Control. mandatory to go live but highly recommended If you have any questions during the registration process, please contact HK PSC 1. Submit your request under Enquiry Form 2. Select “New Seller Registration Status” for “topic of your question” 3. Select ”All” for “Venture with issue” Strictly Confidential 15 How to sign up on Lazada? Step 1. Complete the application form • Fill in online signup form in English at http://www.lazada.com/sell Strictly Confidential 16 How to sign up on Lazada? Step 2 - 5 Just reset SC password Sign Up to Payoneer or World First as a corporate 2 4 account and wait for approval (5-7 days) a) Join our online webinar or, 6 Upload SKUs following content guideline; at least 3 b) Watch videos and pass the test (≥ 50%) 1 SKU be approved (usually 3 working days) Strictly Confidential 17 How to sign up on Lazada? Reasons seller won’t go live If your shop is still not live after MY SC activation, please check the following points: 1 To attend the online training (live webinar or video self learning + test with at least 50% of correct answers) 2 To upload SKUs in your MY Seller Center , and make sure at least 1 SKU pass QC Strictly Confidential 18 Agenda . Why selling on Lazada? . How to sign up on Lazada? . Selling on Lazada . Seller successful stories Strictly Confidential 19 Selling on Lazada 4 steps to sell and grow on Lazada 1 2 3 4 Listing Selling Shipping Get Paid Upload your products by After uploading your You have to ship out orders Payment provider account single or mass upload products, customers can within 48hrs. LGS only for must be successfully following content guideline. see them first on all crossborder sellers integrated into Seller Be aware of our products www.lazada.com.my. Center before seller can and category requirement Learn how to promote your receive the payment products Strictly Confidential 20 Selling on Lazada Resources: Online learning platform Lazada University HK PSC Training Materials: You could watch the video and PDF to learn by yourself. Top Questions: Quickly help you solve the common asked questions. Training Sessions: Register and attend to the free online sessions we provide. Request Form: If you questions are not solved, please submit your request here. • Go to Lazada University, to learn, to grow! • Lazada University website: http://www.lazada.com/sell/university Strictly Confidential 21 Selling on Lazada Logistics: 100% Geographical reach in Southeast Asia Source: Company Information Strictly Confidential 22 Selling on Lazada Logistics: Lazada Global Shipping The benefits of using “Lazada Global Shipping” (LGS) and… …direct impact on your sales 1 6 Less cancelations & lost parcels Significant improvement on LEAD TIME • Higher % of success delivery with daily injection in Southeast Asia • Lower % of cancelled / non delivered items 2 Competitive rate cards through CONSOLIDATION and LOCAL FULFILLMENT VOLUMES 7 3 Increased sales IMPROVED CONTROL by managing • Shorter lead time lead to higher hand over and volume allocation through customer satisfaction level (NPS) in house managed sorting facilities at and better shop ratings origin and destination • Customers sort by delivery time and are more likely to find your products with shorter delivery 4 MODULAR APPROACH enabling more times FLEXIBLE and SCALABLE management • LGS seller are eligible for special of partners to handle peaks and valleys sales opportunities, e.g. flash and other unknowns diverse team with sales Strictly Confidential 23 Selling
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