#MobExAwards 2021 spills: ZALORA's tips on adapting to consumers' ever-changing demands

Headquartered in Singapore, ZALORA is an online retailer that launched in 2012 across seven markets - Singapore, Malaysia, Indonesia, Hong Kong, Taiwan, the Philippines, and Vietnam. It is part of the Global Fashion Group, which operates across 21 markets. This year it won bronze for Best Mobile Payments Integration, and gold for eCommerce and retail at MARKETING-INTERACTIVE's Agency of the Year Awards 2021.

In an interview with MARKETING-INTERACTIVE, Christopher Daguimol (pictured), head of corporate communications at ZALORA, explained the shifts he is witnessing in mobile marketing eCommerce, how consumers' expectations have changed, and his plans for the coming year. 

This interview is done as part of MARKETING-INTERACTIVE’s winners' and finalists’ interview series for the Mob-Ex Awards 2021. To find out more about the awards, click here. 

When it comes to mobile marketing, what are some of the shifts you are seeing?

Daguimol: As the pandemic boosted digital adoption and appetite for online/mobile shopping and entertainment, most Southeast Asian consumers now use at least one digital channel while shopping. While this has brought about savviness, consumer expectations have also shifted – reflecting the diversity of consumers in the region.

For example, even as digital payments gain traction amongst Southeast Asian shoppers, payment preferences across the region remain as diverse as its population. As such, we are seeing platforms offering a range of payment options to their customers – from contactless options to Buy-Now-Pay-Later programmes. This helps brands to improve upon their customer shopping experience through a seamless purchasing journey, and also goes a long way towards retaining customers and building brand loyalty through rewards and incentives.

Examples of such perks include exclusive and limited-time promotions, as ZALORA had done during the launch of GrabPay and Atome on the platform. This was then further tied into subsequent campaigns to promote consumer adoption – during ZALORA’s recent Big Fashion Sale, customers were encouraged to try out PayLater by Grab through the offering of various prizes, including 1,000,000 GrabReward points.

Another key shift to note is the rise of social and live commerce. With the gross merchandise value of social commerce tripling between 2019 and 2020, brands are increasingly turning towards platforms like live streaming and KOL marketing to create a social and emotive experience for their customers online. This has been especially important to Gen Z shoppers who form 69% of the region’s digital consumers, whose appetite for interactive content and experiences will continue to shape the region’s industry for years to come.

To cater to this growing demand, ZALORA launched our own live stream platform, Z-Live, in June 2021 - providing our customers with a carefully curated content platform that facilitates real-time interactions between them and ZALORA ambassadors.

How have consumers' expectations changed this year? What did you do to pivot?

Daguimol: The events of the past year have had a significant impact on the retail industry, forcing many brick-and-mortar stores to close – leading to a massive shift to the online shopping space as people spent most of their time indoors or at home. Throughout this period, while demand remained resilient, consumers’ needs and expectations have evolved with the times, and we have seen this through the changing nature of popular categories and products across the past year.

In response to the retail intelligence and consumer insights gathered through TRENDER, a Data by GFG product, we have worked to pivot our offerings accordingly and brought in new brands and products to our platforms to meet the growing consumer demand in categories such as Athleisure, Sports, and Luxury. We recently launched our annual ZALORA Southeast Asia TRENDER Report that highlights key trends we saw in 2021, while revealing our predictions on what will take place in the fashion and lifestyle retail scene in 2022, based on consumer transactions and search data.

Similarly, stronger consumer sentiments around the importance of sustainability have seen the demand for sustainable products grow over the past year, with 60% of our customers indicating that they would be willing to pay more for such products. In response, we launched a sustainable collection from our Private Labels – Origin by ZALORA and Earth by Zalia for our modest wear offering, as well as launching our Earth Edit category, allowing our customers to shop from a wide assortment of sustainable fashion items including pre-loved assortments, while also enabling us to make significant progress towards the goals outlined in our five-year sustainability strategy.

Mobile is one of the key priorities for brands these days. What is one advice you have for brands to cut through the clutter?

Daguimol: Customer centricity remains the key to attracting and engaging with one’s customer base, and brands should be looking for ways to tailor their offerings to meet the ever-changing tastes of consumers. For instance, the mobile phone became the medium of choice for millions of Southeast Asians following the onset of the pandemic, as people were confined to their homes and unable to do their shopping in-person. Consequently, brands have worked to re-imagine their mobile apps and websites to enhance their customers’ shopping experience, be it through the optimisation of existing assets, or the introduction of entirely new features.

With that said, the focus should always remain on quality over quantity.

Rather than introducing a whole slew of features or content that may not be in line with consumer preferences, brands should strive to create deeper engagement with their customers through the cultivation of curated touchpoints and content that resonates with what they stand for.

ZALORA introduced new content offerings in 2021 from interactive livestream shopping through Z-live to initiatives like the launch of its podcast series, ZALORA Talks, which explored trending topics in the fashion and lifestyle industries and provided the community with an opportunity to listen to the insights of industry experts and KOLs around topics close to their heart.

What are your plans for the coming year?

Daguimol: Next year is a BIG year for ZALORA – we’re celebrating our 10th year anniversary in March! ZALORA will always be embracing the limitless mindset and with it, lies our passion for innovation and bringing wow moments to shoppers and our partner brands.

Firstly, ZALORA will continue to bridge the gap between online and offline shopping experiences through the integration of innovative technologies such as AR and VR. For instance, our Virtual Dress Room feature provides the traditional in-store experience to customers from the comfort of their own homes, which is particularly helpful as social distancing measures remain common practice. Such tools not only enhance the overall shopping experience but also pave the way for our partner brands to tap into high-cost technology at a scalable rate.

Secondly, ZALORA recognises that social commerce is here to stay, and so will continue to curate and create personalised content for our audiences through Z-Live. This allows for constant real-time interaction between ZALORA and our customers, while complementing the company’s existing line of customer-centric features, including Get the Look, Follow the Brand, and other hyperpersonalised offerings.

Thirdly, ZALORA will continue to champion sustainability in fashion through every touchpoint in our business, to make a positive difference in the way we operate. We recognise our unique position in the market that allows us to influence consumers and the fashion retail industry to operate more responsibly, and so our aim is to help shape a mindful fashion ecosystem, while connecting people to the limitless world of fashion.

Lastly, we will continue to scale up our marketplace business and add on to our extensive portfolio of over 3,000 local and international fashion and lifestyle brands, providing customers with even more offerings that align with their needs and preferences. We also look forward to being an e-commerce enabler for some of the biggest global brands, who can draw from our wealth of retail intelligence and data-driven offerings to help capture the region’s demand boom, while simultaneously navigating its complexities.