Southeast Asia as a trading region has a certain tendency to be neglected in favor of its two large regional neighbors: India and China. However, the region has a complete population of over 600 million people, an increasing variety of whom are buying smartphones and joining the worldwide middle class. In 2016, Google estimated that e-commerce spending across the region would reach $88 billion by 2025, up from just $5.5 billion in 2015.
Last yr, Amazon planned to enter the Southeast Asian market in the primary quarter of 2017. However, suddenly the plan was postponed. The timeline has been moved to “later this yr” because for now, e-commerce is prioritizing other projects geared toward entering the Australian and Middle Eastern markets, although Amazon officials don’t say this officially.
Ahead of the postponed plan, competitor Lazada overtakes Amazon. Partnering with Uber and Netflix, in addition to Redmart, Lazada has announced a membership program called LiveUp, which is a premium membership package. For a flat annual fee of SGD 28 ($20), LiveUp subscribers gain access to a variety of offers that include services offered by corporations. These include promotions and faster/free delivery for e-commerce stores Lazada and Taobao Collection, controlled by Lazada owner Alibaba, in addition to offers for RedMart, the web grocery site purchased by Lazada last yr.
There’s also a free six-month Netflix subscription and discounts on Uber rides and UberEats food delivery. The service is initially available in Singapore. However, the businesses said they plan to explore “other collaborations across the Southeast Asian region.” Additionally, a smartphone app will probably be available later this yr.
“We believe Singapore is at an inflection point where consumers are embracing online lifestyle services such as shopping, ride-sharing, food delivery and entertainment as a way of life,” Lazada Singapore CEO Alexis Lanternier said in a press release .
In addition to benefiting Lazada ahead of Amazon’s entry into the region, the alliance can even help Netflix discover a foothold in a region where many consumers are still reluctant to pay for content. LiveUp also gives Uber an edge in competition with Grab, its $3 billion rival, which recently launched a membership program for its customers in Southeast Asia.
Source : techcrunch.com || pymnts.com || ecommerceiq.asia
