Lazada has just announced a new membership program called LiveUp, which will provide consumers a one-stop shop platform for shopping, transportation, delivery and entertainment services. This service has been launched together with Redmart, Uber, UberEats and Netflix, and is viewed by many as a pre-emptive move to Amazon’s highly anticipated market entry to the region.
This new service is aimed at the ‘online lifestyle natives’, according to Redmart CEO Roger Egan, a term used to refer to people who are time-starved savvy internet users and want affordable convenience. It makes sense, therefore, that the service will be launched first in Singapore, before any specific plans to expand to the other regions.
According to a report by Tech In Asia, Rocket Internet’s Lazada saw more than US$350 million in consumer purchases in 2014. US$70 million of that spending happened in December alone, due to Christmas and special promotions like the 12/12 sales day.
Indonesia’s shoppers made up over 30 percent of Lazada’s 2014 spending. According to CEO Maximilian Bittner, exclusive online gadget sales for brands like Xiaomi and Motorola have helped Lazada greatly in Indonesia.
Lazada started out doing only direct sales to consumers from its own warehouses, but that changed in the fall of 2013 as the company launched a marketplace for third-party merchants. Those merchants now take in 70 to 75 percent of the consumer spending at Lazada.