Asia’s e-commerce industry has been enjoying robust growth in the past few years. While sites like Lazada and Zalora have a growing market in multiple countries, other e-commerce websites such as Tokopedia have become industry behemoths in their respective countries. Each of these online marketplaces have unique features; some services are tailored to individual country needs while others have a global approach. Among some of the most successful ecommerce sites are Singapore’s Lazada and Qoo10. Below, you will find a comparison between the two sites.
Overview:
Qoo10:
Qoo10 was established in late 2010. The company was established by both EBay and Mr. Ku Young Bae. It owes its early success to the Japanese and Singaporean markets, where it still enjoys the position of being the second largest online marketplace on the basis of sales and user performance.
Lazada:
Lazada was established about two years after Qoo10. It was founded by Rocket Internet in Singapore. Despite getting a later start, it didn’t take long to establish their presence in the region. In just a short span of time, Lazada became Southeast Asia’s top-ranked online marketplace. Lazada has several warehouses to accommodate sales and purchases made through its shopping portal. The company also has its own logistics service, called Lazada Express. Because of its wide range of varieties and features, it’s has been dubbed as the Amazon of Southeast Asia.
Operating Countries:
Qoo10:
Qoo10 services are currently available in six of the major Asian countries. These include Japan, China, Hong Kong, Indonesia, Malaysia, and Singapore. Among the countries, Singapore remains to be its most profitable market.
Lazada:
Lazada had become Southeast Asia’s leading e-commerce website and its services are currently available in Malaysia, Indonesia, Thailand, Singapore, Philippines, and Vietnam.
Items available
Qoo10:
An estimated 75% of Qoo10’s users are female, and their average age is 27. This demographic drives a significant majority of the business, as Qoo10 appeals due to its large listings in health, beauty, and
fashion categories.
Lazada:
Lazada listings are comprised of a wide range of categories however electronics has been the most lucrative for the brand. Lazada is popular with shoppers who are interested in electronic goods and gadgets because the company has a good reputation for selling original items, which is a rarity in Asia as most markets are inundated with fake items. Smartphones, notebooks, and various electronic appliances are popular subcategories.
Company Statistics:
Lazada:
Lazada’s goal has always been simple: the company aimed to be the largest and most successful e-commerce site in Asia and be known as the Amazon of the East. At the moment, Lazada’s team is made up of over 7000 full-time employees. 5 million visitors visit the site daily through mobile app and desktop. Over 13 million users follow Lazada online, making it the top-ranked e-commerce company on social media today. Lazada is a significant retail channel that offers merchants and brands quality marketplace solutions and access to over 550 million consumers.
Qoo10:
Qoo10 has established a stronghold in the countries it operates in, thanks to its exceptional services. In Singapore alone, more than 50,000 sellers registered accounts on the site in the span of 2 years. An estimated SGD10, 000 is transacted through Qoo10 each month. There are currently more than 900,000 active users on Qoo10 from Singapore. Given the substantial increase of 1,000 new registered users per day, Qoo10 seems to only be growing its market share.
Customers Feedback:
These e-commerce websites provide a multitude of benefits, discounts, and customer service yet there some customers are still left unsatisfied which results in negative feedback. This may be due to high customer expectations or because individuals are more prone to sharing negative feedback when they are unhappy with a product or service as a means of complaining.
Lazada:
Lazada provides services that are usually of higher caliber than its competitors. However, Lazada delivery services have received complaints from customers. They contract third-party transportation services such as Ninjavan to deliver goods to customers, and in certain occasions there may be delivery issues which are out of Lazada’s control. However, other customers also complain that Lazada resellers sometimes do not comply with the terms of manufacturer’s warranty. Despite these concerns, a majority of Lazada’s customers are satisfied with the company’s goods and services.
Qoo10:
In comparison to Lazada, Qoo10 tends to be more controversial. Despite the fact that Qoo10 prices are lower than Lazada’s, some customers reported receiving fake or products that are made in China. In addition, there have also been reports that customers are treated unfairly. However, for customers who aren’t brand-conscious or those who are looking to buy products at low prices, Qoo10 is the ideal online marketplace.
Payment Method And Returns:
Lazada:
Lazada offers several payment methods including cash-on-delivery, credit card, and helloPay. Lazada offers free returns and refunds to customers, which is an unusual yet appreciated service for Asian customers. Because of this policy, customers are more enticed to spend money on the site.
Qoo10:
Qoo10 also provides its user with multiple payment options including paypal, credit card, paylah, and QAccount. Recently, Qoo10 introduced a new payment method where customers can pay cash at 7/11 outlets, an answer to the 900,000 Singaporeans who do not yet have a credit card. This move has propelled Qoo10 to a higher position in the Singaporean market. However, Qoo10 has more complicated return policies compared to Lazada.
User-Interface:
Lazada:
Lazada user-interface has fewer advertisements as compared to Q0010. The website is designed to look like a virtual shopping mall. Items in each category are neatly displayed in an effort to help customers find what they are looking in a shorter span of time.
Qoo10:
Qoo10’s interface is busier compared to Lazada, as it is inundated with advertisements, discounts, and offers for several different products. These advertisements contribute to revenue although it can be a confusing experience for the customer and may even drive away potential shoppers.
Funding:
Lazada:
Lazada largely owes its regional success to its pool of quality investors. In the same year the company was founded, they received two large rounds of funding: One from Rocket Internet of $40M and other from Summit Partners of about $26M.In the following year another $20M was invested by Tengetmann. In mid-2013, Holtzbrinck Ventures and Summit Partners, along with other companies invested an enormous amount of $100M. At the end of the same year, another large sum of $250M was invested by Tesco, and PLC Access Industries. In 2014, Temasek Holdings and Investment AB Kinnevik poured $249.1M more into their funding. Lazada has received a total of $685.1M in funding to date.
Qoo10:
Qoo10 was established earlier than Lazada although less capital has been invested into the company. Singapore Press, Holding Ltd, and eBay invested $82.1M in a round of funding. However, smaller investments sufficed and enabled Q0010 to grow as quickly as Lazada due to a smaller market share in the region as compared to Lazada.
Conclusion:
Given these facts, it appears that Lazada offers a better shopping experience than Qoo10. At the end of the day however, it comes down to customer satisfaction. Lazada might seem more competitive based on the data, but Qoo10 offers more products at a cheaper rate. Price continues to play an important role for many customers. Generally, it’s fair to say that both e-commerce businesses contribute to the strengthened performance of e-commerce in Southeast Asia. When it comes to dominance in terms of market share and revenue, Lazada continues to be in the lead.