Digital commerce continues to drive retail growth in 2Q22

KUALA LUMPUR: Digital commerce will be a resilient driver of retail growth in second quarter of 2022 as sellers in Southeast Asia continue to adopt a confident outlook on business growth, according to Lazada’s Q1 2022 Digital Commerce Confidence Index (DCCI).

The confidence index also noted that the Ramadan and Holy Week in celebrating countries, as well as the upcoming summer holidays are important drivers of the positive outlook, as these occasions often translate to increased demand and consumption, a statement from Lazada said today.

The number of online sellers expecting more than a 10 per cent rise in sales rose from 74 per cent in the last quarter of 2021 to 77 per cent in the first quarter of 2022 as economies across the region gradually open up and ease restrictions on mobility and business activities.

In that regard, 74 per cent sellers said that they would further increase their inventory by at least 10 per cent to support the anticipated growth in online sales, and 47 per cent would increase staff resources, signifying confidence in their business growth, the statement said.

Additionally, the statement also found that low prices, affordable shipping, ease of search and convenience when shopping online are important factors.

Businesses also need to put in more effort to attract customers to shop online while ensuring prices are competitive, the statement said.

Meanwhile, Lazada group chief strategy officer Magnus Ekbom, quoting from a Lazada Consumer Study, said that 73 per cent of Southeast Asian consumers identified online shopping as an integral to everyday life. The consumer study involved 766 online sellers from across Southeast Asia.

“Online sellers who can better understand digital shoppers’ preferences and category trends will be well-positioned to stay competitive and win in the digital commerce industry,“ Ekbom said. — Bernama