Lazada 6.6 Mega Sale and 6.18 are around the corner, Taobao just dropped us a few tips.

In March 2024, Hong Kong's retail sales dropped by 7% year-on-year (YoY) to $3.99 billion (HKD31.2 billion), with sales volume decreasing by 8.6% YoY. In contrast, Singapore's retail sales grew by 2.7% YoY, slightly below economists' expectations.

Meanwhile, Shopify, Canada's e-commerce giant, expects its slowest quarterly revenue growth in two years, with shares plummeting 20% due to economic uncertainty and cautious consumer spending. In 2024, consumer spending remains strong in travel and entertainment but constrained by high prices for everyday purchases. Credit card companies report stable spending, while industries like airlines and hotels anticipate a robust season. However, consumers are cautious about discretionary spending due to economic uncertainties, leading to delays in home improvement purchases and subdued sales for retailers and restaurants. Companies face challenges maintaining profit margins amidst inflation and increased competition, prompting heightened promotional activities.

This scenario urges retailers to rethink their strategies for the upcoming Lazada 6.6 Mega Sales and 6.18 Sales.

Recently, online platforms in Southeast Asia have attempted to embrace new strategies to boost online sales:

• Shopee Malaysia has launched the On-Time Guarantee program to ensure prompt order fulfillment through all Shopee-supported logistics channels. Under this program, customers will receive a RM5 voucher if their deliveries exceed the estimated delivery date. This initiative aims to enhance buyer confidence by providing faster and more flexible delivery options, such as next-day delivery, instant delivery, and more self-collection points.

• Buy Now Pay Later (BNPL) services have surged in Southeast Asia since its introduction in 2018, offering a flexible payment option for consumers. With 76% and 67% unbanked populations in the Philippines and Indonesia respectively, and similar figures in Vietnam (47%), Malaysia (40%), and Thailand (25%), BNPL services offer an attractive proposition to fill this gap.

Then, what can brands get well in preparation for upcoming big sales?

Here, dipp caters five tips for retail brands to think twice for your mid-year sales campaigns:

1. Marketing Strategies -

   1. Emotional marketing is gaining traction as brands recognize the importance of connecting with consumers on an emotional level. Mintel's Joey Khong emphasizes the significance of evoking positive emotions like joy and pride in consumers. Authenticity is crucial, with consumers valuing brands that align with their values and demonstrate reliability.

2. Customer Experience -

   1. Personalization seems a key to maintaining customer loyalty and increase word-of-mouth.

   2. Gamification loyalty program - traditional point-based schemes may fall short, integrating gaming elements can drive customer participation and retention. Retailers are innovating with QR code treasure hunts, time-sensitive challenges, and tiered rewards. They leverage digital technologies like AR/VR and Generative AI to offer hyper-personalised experiences, boosting engagement and driving increased spending in-store.

3. Monitor and Adapt

   1. Real-time Analytics: Track sales and customer behavior in real-time to adjust strategies promptly.

   2. Flexibility: Usually, you also update visuals promptly when you notice the creatives just don’t perform well enough.

4. Enhance Online Presence

   1. Website Optimization: Ensure your website is shopper-friendly, avoids info overload and maintains brand consistency across all channels.

5. Sustainability Practices

   1. Eco-friendly Packaging: Use sustainable packaging to attract environmentally conscious customers.

   2. Promote Green Initiatives: Highlight your brand’s commitment to sustainability.

As retailers prepare for the 2024 Lazada Mega Mid-Year and 618 sales events, leveraging BNPL options, prioritizing on-time delivery guarantees, and implementing strategic initiatives across product preparation, marketing, customer experience will be essential for maximizing sales opportunities and delivering exceptional shopping experiences to consumers. By staying agile and responsive to evolving consumer trends, retail brands can capitalize on these sales events to drive growth and success in the competitive e-commerce landscape of SEA. 

dipp wishe you all have a fruitful mid-year sales outcome!

News source:

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