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BIS Assignment2 Alit Amanda Putri Resi PDF
BIS Assignment2 Alit Amanda Putri Resi PDF
Besides, the growth of people accessing online is increasing through several years
which is shown in figure 1. It is a great potential to use mobile application as the way
to reach customers.
more complex information and tends to be e-business which is not for only customer
but also key partners getting relation with Zalora.
Zalora mobile app provides easy and fast order steps for high mobility people so
they can access Zalora and buy items at anytime.
understandable order steps can be a good offer for elders who got limitation using
technology. Thats why navigation of the mobile apps designed to be simple and
understandble.
Having Zalora mobile app on portable gadget makes Zalora and customers keep in
touch easily. Zalora can deliver many kinds of message such as special day greeting
as customer care so that Zalora can increase customer realtionship. A good
relationship keeps customer on loyalty and causes income increasement.
application on iOS and Android to make customers easier do the online shopping
anytime. Based on an article at thenextweb.com, Zalora predicted many consumers in
Southeast Asia would leave the desktop PC experience and going straight to mobile
that tablets are the particular focus because the larger screens are better suited to
shopping and Internet browsing than a smartphone. Therefore Zalora is looking
forward gain more sales via tablet than PC. Although shopping via PC is modern,
Zalora thinks one step ahead much hip than what currently happen, because what is
becoming trending now soon will be old and replaced by newer innovation.
As mentioned before, online fashion retailers obviously dont have physical store
and fitting room, that Zalora also has the same problem. When others e-commerce
make it as the weakness and threats which can be beaten by the offline stores, Zalora
makes it as a good opportunity instead. Zalora goes offline with pop-up store in
several countries, including Indonesia that was located in Kota Kasablanka Shopping
Mall Jakarta. Based on an article at rappler.com, the concept of this breakthrough is to
help customers see, touch, and try on clothes at the store as what we usually do in
physical department store. However they cannot take them home immediately. They
buy products at the store, and Zalora delivers them to their homes as we have
experienced shopping via online. They were asked to scan a QR code and download
the Zalora application to their smartphones. If they dont have or forget bringing one,
customers can also use the available tablets found inside the store or laptops at the
check-out counters to sign-up or log-in to Zalora app and then place their orders. It
shows that Zalora could blend two different concept of shopping traditional and
modern to be a unique shopping experience.
b. Find the product that you want to buy by selecting the category. For example
choosing shoes category. Select a product and select the size and then click "Add
to Shopping bag".
g. If you are sure for the data that you fill, you can click "Purchase"
h. After click Purchase, you will receive a confirmation email (booking code etc.)
and SMS as well as the expected delivery time.
5. Feasibility study of the business Part 1. The analysis includes market analysis,
competitor analysis, and industry analysis
a. Market Analysis
At the heart of Zaloras mission is to address a fashion market of 600 million
people in Southeast Asia and Australia, worth over EUR 60 billion (US$63.5
billion), as they reveal in a 2014 report. To have position as the biggest ASEAN
online fashion retailer, Zalora is headquartered in Singapore and also operates in
Hong Kong, Malaysia, Thailand, Indonesia, the Philippines, and Vietnam, as well
as in Australia and New Zealand under the name The Iconic.
Zaloras target is 70% women and 30 % men, within 18-40 years old
customer, and focus on people at 20-35 years old. They aim middle class segment
who love fashion and really comfort to do online shopping. Thats why Zalora has
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more womens product than mans. Zalora also determines what price is reachable
for middle class.
The number of Zaloras transactions increased more than 90%, from 2 million
in 2013 to 3.9 million in 2014. The total number of customers doubled, growing
from 1.3 million to 2.7 million for the same periods. These data show that market
changing could happen anytime. Customer number growth is really possible to
happen in 2015.
Zalora in 2013 had tried strategy using community to collect and group data
based on occupation, location, ect. Using those information, Zalora understand
what brand or products attracting consumer. Zalora adjusts their contents to local
market preferences. Zalora has partnership to local designers adapting what local
people are looking for. Nowadays, there are more than 3000 merks with products
intersting customers so that Zalora get positive development. Hijabbers for
example, Zaloras hijab product became complate because of this huge
community.
Zalora also concerns about customer potential at mobile use. Zalora launched
mobile app to faciliate customer easier online shopping and developed technology
and loyalty program for customer. The mobile app is designed to make customer
experiencing navigation easily. People nowadays spend their time to see their
smartphone monitor everytime everywhere. Zalora sees this big potential to grab
by launching Zalora mobile app. The mobile app strategy will be the key strategy
to win the business. Zalora teams ensure Indonesian customer to have Zalora
mobile app on their smartphone by doing promotions on social media that got big
social impact to Zaloras prime segment.
One data point he was willing to share is that a typical user spends 50 minutes
a month on Zaloras app, which has been downloaded 5 million times so far.
Strategically, Zalora is preparing for a mobile-only market, as Costa put it. He
sees many Southeast Asians making the move to going online via smartphones
rather than laptops.
of Zalora are Emigo and Mango in Vietnam, Odioli and Berrybenka in Indonesia,
Metrofashionevo and H&M in Philippines, Milktee and Dressabelle in Singapore,
Asos in Hongkong, Topshop in Thailand, and Yoox in Brunei. Those competitors
sell the same product fashion and Zalora has to share piece of cake for them in the
same market segment. Zaloras indirect competitors sell the products that can
substitute for fashion such as food, electronic devices, entertainment services, and
more. Based on Porters 5 forces tool to analyze the competition in the industry,
this substitution could be a thread for Zalora. Lets say Tokopedia and Bukalapak
in Indonesia which have selection of goods not only fashion, also they have
automotive equipments, food and beverages, technology and electronic devices.
Another threads based on Porters 5 forces tool, Zalora Indonesia is now
facing Matahari Mall, as a new entrant of tashion e-commerce that has a strong
local network and backed up by US$500 million in funding. Like Zalora, Matahari
Mall also sees a future in merging online and offline shopping. Through their
Matahari department stores, they already have the infrastructure in place. Matahari
Mall offers the goods spanning fashion, beauty, electronics, home, groceries,
books, entertainment, and more, also they claimed that they are the first online-tooffline ecommerce site in Southeast Asia. This means that people can buy stuff
online, then waltz into a Matahari department store to pick up the goods later.
Zalora Indonesia was created in 2012 while its elder competitor, Bhinneka,
has been established since 1999. Bhinneka is known as the pioneer e-commerce
that continues to expand and grow into the largest e-commerce website in
Indonesia. They sell electronic devices, sports and hobbies, automotives, fashion,
and more. From their tagline Indonesias no.1 Online Store, indeed implies their
vision to be the only best online store in Indonesia that provides goods and the
ease of shopping. Based on an article at wstats.ws, it is estimated worth of
US$1,971,020.00 and have a daily income of around US$1,460.00. Based on an
article at kompasiana.com, Zalora has at least 200-500 transactions per day with
estimation Rp 300.000 on average, so we can conclude that Zalora could earn at
least Rp 60.000.000 (US$4.615,38462) that is much earning than Bhinneka.
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Zalora has suppliers from 500 brands including worldwide brand (Mango,
Nike, Levis) and marketplace brand (local brand). Their income is sourced by the
commission from each brand. Zalora distributes the products to the buyers that
have willingness to purchase and power of money especially who need fashion
retail just one click. They targeted middle to high class shoppers for the
worldwide brand, and middle to low class shoppers for marketplace brand. For
500 brands of suppliers, high levels of competition among them acts to reduce
prices to producers. This statement will lead to an increase in profits for Zalora.
For buyers, when producers have low dependence and distributors have less
bargaining power, this might hinder buyers to fulfill their needs. This statement
will lead to an opportunity for Zalora offers the goods and deliver them sooner
and could increase the profit also.
The full value chain of Zalora while in this industry is divided into five categories,
there are assortment, marketing on site, payment, logistics and delivery,
6. Feasibility study of the business Part 2. The analysis includes growth potential
analysis, risk mitigation analysis, and financial analysis
a. Potential growth analysis
Indonesia is a country that has population very more than 200 million people.
Currently, Indonesia has a penetration of internet users is very large, the data
show that 20% of Indonesia's population use the internet for various purposes. Not
only that penetration growth of Internet users in Indonesia is also very surprising.
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From the data, it can conclude that south east Asia market is still growing and
have high potential of buyers by 17.9 million visitors in the region monthly and
uploading 23.375 every week. The buyers can be expand if Zalora can expand the
region, too. While mantaining the reguler customers which Zalora already had.
b. Risks and mitigation analysis
This is a list of risks and mitigation that may occur in zalora:
No
Risk
Mitigation
Tapping server
Traffic overload
Virus
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Order errors
Catalog price and the amount of stock that is
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15
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not update
Customer dissatisfaction
website
with
an
attractive
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Late on shipping
Customer arbitrarily when do COD
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c. Financial analysis
Zalora had a negative income almost USD 91 M in 2012. Zalora launched
confidential income statement 2012-2017 for investors, Zalora Southeast Asia
made USD 62.5 M in 2012 revenues. It is shown in figure 10.
In fact by Forbes, Zaloras 2014 revenue was USD 140.4 M and net losses USD
68.1 M. Zalora Zaloras GMV grew 80% in the past year: from 84 million in
2013 to 151.6 million in 2014. The operating lossas a proportion of GMV shrunk
from 90% of GMV in 2013 to 58% in 2014.The number of Zaloras transactions
increased more than 90%, from 2 million in 2013 to 3.9 million in 2014. The total
number of customers doubled, growing from 1.3 million to 2.7 million for the
same periods. Even now Zalora has negative income and did not gain any profit,
but with this growth potential by its financial analysis, Zalora is moving toward
profitabilty year by year.
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http://www.forbes.com/sites/susancunningham/2015/05/12/rockets-lazada-and-zalora-lost235-3-million-in-2014-but-are-moving-toward-profitability/
http://www.slideshare.net/p2045i/rocket-internet-may-2015-report
https://www.techinasia.com/zalora-lost
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