Positive impacts of Lazada’s success

ecommerce3The online retail company Lazada was a stunning success in its first year of operations and their commercial success has resulted to the progression of the local e-commerce industry in general. Lazada’s dynamic way of doing business sends out a ripple effect that can be felt throughout the entire local e-commerce industry. It has affected the way people think about online shopping, the way they shop and their perspective on e-commerce as a whole. The most noticeable effect of Lazada is the awareness that they created.

Back then, a lot of people are not into online shopping because they thought that it is a shopping activity that only members of the upper class demographics can do. That perception was very natural because it takes a lot to participate in it before here was Lazada. You got to have a credit card for you to pay your purchases and of course you’ve got to have an Internet connection since it is online shopping and it wasn’t called online shopping for nothing right? Plus you need a computer and that adds up to the requirements, and these things the credit card and internet connection plus the computer are accoutrements that was previously associated only with people of privilege and the moneyed class. Several years back, devices with access to internet are not that easily accessible for the average citizen, unlike how it is nowadays when everything, every gadget that is being released are all capable of connecting to the Internet heck I would not be surprised if they come up with a washing machine, an stand fan, a microwave oven or a flat iron that is Internet ready (that is still going to be outlandish but not surprising anymore). Since those three primary requirements to do online shopping are not easily accessible back then, online shopping did not pick up and did not catch up with the general population of consumers unlike what it is today. Now moving forward to contemporary times, around 80% to 90% of the population are regularly surfing the Internet. The so called netizens have more than doubled in population ever since the cost of Internet subscription have gone down and a lot of ISPs started offering them at affordable prices and also like what I have said earlier, gadgets have that are Internet ready are easily obtainable.

Okay after having said all of those things, where does Lazada come in then? Well here’s how the Philippines’ online shopping mall factors in the accessibility and increased online shopping awareness, remember I said earlier that one of the requirements previously for people to be able to go online shopping was credit card membership, well Lazada changed the way that online shopping is being done and how accessible it could be for regular shoppers by offering other ways to make payments online and that is the cash on delivery payment method. They still offer credit card payment as the primary way to pay but also allow consumers who doesn’t own one to make payments using cash. That is how the company positively affected the industry as a whole, by bringing online shopping within the majority’s reach.

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