1.

0 BENEFITS

Zalora has an online shopping system that assisted it to remain competitive in the market and
thus expand sales. It has been focusing on increasing its customers through social media such
as facebook, Instagram and its mobile application. Zalora claims that over 45 percent of its
sales have come through the internet. Its objectives is to attract more customers and influence
them to develop a liking for online shopping.

1.1 Big Data Entry

The first aspiration of Zalora, is to provide relevant products and services to its customers. In
an attempt to do so, Zalora makes use of the behaviour data of customers to monitor supply
and demand. Conversion rate, page visits, number of clicks and view of goods - the whole
customer experience on their system/website is observed in real time and provides the
purchasing team with instrumental insights. In each market, Zalora will create a tailor-made
product. For example, based on the enormous number of search queries and a very high
conversation level of classic fashion wear on the websites of Malaysia and Indonesia, Zalora
developed its own classic fashion brand ZALIA in 2015 which was an immediate success and
achieved a sell through rate of 30 percent higher than first season industry average. In
addition, being online allows Zalora the ability to effectively target potential through the
numerous available online marketing platforms such as Google Ads, Facebook Ads,
Retargeting etc. In particular, Zalora leverages the region’s high use of social media to
connect with its clients ( Bangkok, the world’s highest social city, has 100 percent of its
population of Facebook. Lastly, on Facebook, Zalora can map the social media profile of its
current ( Based on their location, interest, age ,etc.) and identify similar target audiences to be
advertised. This is a great way to control the start-up’s marketing budget by make use of
technology to increase its advertising relevance.[ CITATION Cla16 \l 7177 ] Zalora system
allows for Big Data entry. It has made use of systems that allow for the recording and
maintaining of data i.e customer data, product data among other data items. The Customer
Relationship Management system helps in gathering data of new product development so as
to attract existing and new customers. More-over, it enables to get customer feedback through
the social media. For example, Zalora invests in Oracle’s Marketing Cloud – to upgrade
customers experience across the digital world. [ CITATION ACA19 \l 7177 ] Figure 1- shows
Zalora’s Visitor Engagement on its website. It clearly shows the number of people visiting its
website and the time spent on each page.
 Figure 1

SOURCE ([ CITATION Zal13 \l 7177 ]

1.2 LOWERING COSTS AND INCREASED SALES

In terms of lowering costs, Zalora has made use of digital advertising to reach out to its
customers. Digital advertising is cheap compared to the traditional methods that were being
employed by Zalora before. Secondly it has been able to save on rentals. Rather than opening
up different stores in different locations, Zalora has centred all purchases around its
application thus becoming cost effective. Zalora does not require agents to be a mediator for
their customers to make an order of the product they want - which has also helped them in
lowering down their costs. In addition, Zalora’s sales have increased as a result of the system
because people find it much more easier and convenient to bargain from the comfort of their
home i.e. without having to go to the shop. More so, it is of more reach to customers and it
has no problems geographic limitations. This means that the system can be accessed anytime
and anywhere and purchase made. The store is always open and accessible 24 hours of the
day. The products are delivered at the customers location or home and payment can be made
upon arrival of the products (cash on delivery ). The customer is allowed to return or
exchange if the wear does not fit thus creating customer loyalty. Customer loyalty, means
more customers. The more the customers sales boosts and thus more investors come. Zalora
raised $100 million in 2013 from various investors.[ CITATION Ebr19 \l 7177 ] Zalora launched
its mobile application in 2013, with more than four million facilities and almost three million
active customers by the end of 2015. Figure 2 shows Zalora’s financials from 2013. It clearly
shows that there is a strong growth in Zalora’s profits.
 FIGURE 2

Source: [ CITATION Sli19 \l 7177 ]

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