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#MobExAwards 2021 highlight: Behind ZALORA's winning strategy for livestreaming

#MobExAwards 2021 highlight: Behind ZALORA's winning strategy for livestreaming

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ECommerce and retail have been transformed in unprecedented ways as more consumers across Southeast Asia embrace online shopping and are expected to do so permanently moving forward. According to Facebook and Bain & Company, Southeast Asians have become more home centric, and are less likely to go out even as pandemic restrictions are lifted.

As one of the region’s fastest-growing eCommerce players, ZALORA understands the importance of agility and leveraging data to effectively respond to changing consumer behaviours and industry trends, and to further elevate customers' shopping experiences.

To capture and engage online consumers through mobile commerce while effectively driving the platform’s growth, ZALORA decided to launch three major shopping events in the first half of 2021. The campaign to promote all three shopping events was well-received across Southeast Asia and the introduction of mobile-first innovations in the campaign was so impressive that the team clinched the gold award for eCommerce & Retail at MARKETING-INTERACTIVE's MobEx Awards 2021.

Challenge

The majority of ZALORA’s customers are Millennial and Gen Z consumers. These young digital natives are entering the cusp of their spending years and tend to be more adventurous and seek out online inspiration compared to older generations. BCG predicts Millennials will increase their per capita spending by over 10%, while Gen Z are expected to increase theirs by more than 70% in the same period.

ZALORA needed to capture and engage online consumers through mobile commerce while effectively driving the platform’s growth through the launch of three major shopping events:

1. ZALORA’s 9th Birthday Sale (25 to 31 March 2021): To sustain the momentum of last year’s successful 11.11 and 12.12 campaigns and drive more traffic to the platform.

2. ZALORA Luxury Festival (14 to 20 June 2021): Following the launch of the luxury category in September 2020, which included over 300 brands and 30,000 products, ZALORA sought to elevate its brand and be the top-of-mind online destination for luxury fashion.

3. ZALORA Big Fashion Sale (24 to 30 June 2021): To expand consumer-centric offerings and events, ZALORA continued to hold its annual Big Fashion Sale event this year, also launching its new mobile livestream platform Z-Live in conjunction with the event.

Solution

ZALORA’s strategies were driven by the eCommerce boom driven by the pandemic over the past year that led to an influx of new mobile-first consumers who are adopting eCommerce in new ways. As many as 40 million users joined the internet in 2020 alone due to lockdowns and movement restrictions. Southeast Asia boasts over 887 million mobile connections — that is, 132% of the total population, with smartphone penetration rates at over 72% and 67% in the Philippines and Indonesia, two of ZALORA’s key markets.

ZALORA’s strategy in capturing this new retail audience, many of which represent the next generation of mobile eCommerce consumers and expect nothing less than a seamless mobile eCommence journey, is built upon three key pillars.

Firstly, ZALORA would make use of data that would provide clear insights about consumers’ needs and expectations, especially amidst rapid changes. To effectively attract consumers to shop on ZALORA’s mobile app, the company’s dedicated Data Science Innovation Lab has been analysing data from its 2.6 million active users across Southeast Asia to derive insights into consumer behaviour and shopping habits. ZALORA’s internal data had shown that the number of unique customers shopping for luxury goods was 172% higher in July 2020, compared to March 2020. This led to the launch of new categories such as luxury, as consumers place greater emphasis on quality over quantity.

Secondly, ZALORA wanted to provide consumers with a tailored curation of shopping experiences that catered to consumers’ interests with precision. A data-driven approach enabled ZALORA to be agile as they constantly innovate to meet evolving consumer demands by creating personalised and targeted consumer experiences to drive customer acquisition. This approach was carried out through the launch of major shopping events that are tailored around key occasions to drive consistent momentum, while also appealing to more specific passion points and interests like luxury and topical content addressed through ZALORA’s inaugural mobile-only Z-Live platform.

Lastly, ZALORA wanted to engage customers via omni-channels across multiple touchpoints throughout the consumers’ mobile shopping experience. ZALORA carried out an all-rounded approach leveraging all its channels to amplify the exclusive deals for consumers, as well as to reach their diverse audiences across the region. This was done by generating hype with teaser campaigns before the shopping events began to build anticipation amongst consumers, amplifying ZALORA’s campaigns through omni-channel targeting, partnering with key influencers, and driving deeper consumer engagement with giveaways, surprise deals, games, and enabling technology-driven features across the campaign periods.

Ultimately, ZALORA drove consumer engagement and awareness on its website and mobile app through these new product launches by amplifying the launch through an all-rounded external communications outreach and fostering deeper consumer engagement with target consumers through exclusive deals and discounts.

Execution

ZALORA marked its ninth anniversary with big birthday surprises for its consumers. Data from previous campaigns indicate greater potential for engagement and conversion through incremental incentives versus heavy reliance on campaign assets and aggressive social media push. For ZALORA’s Birthday Sale event, ZALORA focused on building up interest and participation through daily giveaways, rewards, and prizes. ZALORA created anticipation for the celebration through teaser content including banners and videos rolled out across online platforms in the week leading up to the launch.

Safe-at-home party kits were sent to influencers to invite them to join in the festivities.

With the popularity of snackable video content rising through platforms such as TikTok, ZALORA activated influencers to create short-form videos promoting the Birthday Sale. During the campaign proper, the #ZALORASpin&Win Instagram activation was launched across all markets. Consumers were invited to post a story using the #ZALORASpin&Win filter, to tag @zalora and #ZALORATurns9. Giveaways included platform vouchers and prizes from brand partners. Influencers were also tapped to promote #ZALORASpin&Win across the different markets. Consumers also had the chance to win items just by following ZALORA’s and brand partners’ official accounts, liking the posts, and tagging their friends to join.

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To uplift the branding of the luxury category, ZALORA collaborated with key luxury titles such as L’Officiel and CNA Luxury to create buzz during the launch. Featured brands, the convenience of shopping for luxury items online, and easy payment options were highlighted.

ZALORA also worked with relevant influencers to amplify brand messaging, and showcase the unboxing experience that customers can expect as they receive their own purchases. Content creators were also engaged to produce videos on ZALORA’s easy payment options: how to shop using GrabPay, and to use the “Buy Now, Pay Later” function. To further boost engagement around the Luxury Festival, ZALORA also gave away special luxury items, open to residents of Singapore. The Luxury category’s app layout was also redesigned with more editorial, premium imagery, and different banner dimensions to create an elevated browsing experience.

The Big Fashion Sale is ZALORA’s biggest shopping event of the year. This year’s edition notably saw the launch of Z-Live, ZALORA’s new in-app live streaming platform, allowing audiences to shop while live viewing the programmes.

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Teaser content highlighting tips on how to make the best out of ZALORA’S Big Fashion Sale were sent out via ZALORA’s email newsletter, including a call to download the ZALORA mobile app to make the most of the sale while on the go.

Consumers were also invited to pre-load their carts through editorial spotlight on best-sellers, hot picks and influencer collaborations. Z-Live’s programming was designed around passion points with local ZALORA ambassadors in Singapore, the Philippines, and Indonesia. Five themed shows were scaled across markets, tying in closely with sales to combine interaction, storytelling, and shopping.

ZALORA also executed daily giveaways to garner participation. Rewards and products from brand partners, including Grab Rewards points, adidas and Converse sneakers, were given away via social activations.

Results

ZALORA’s consistent drive to combine data, curation, and omni-channel engagement for elevating the mobile e-commerce experience has allowed the team to sustain its growth momentum even amidst the pandemic. ZALORA notably recorded a 32% uptick in net merchandise value, a 24.2% uptick in revenue and a 15.8% growth in active customers.

The introduction of mobile-first innovations such as the live streaming shows on Z-Live and wider payment options such as PayLater by Grab also helped drive an uptick in App downloads and Add to Wishlist engagement during the key events. The success of the shopping events is proof of ZALORA’s commitment to cater to consumers’ evolving needs and wants and that ZALORA’s agility, data-driven eCommerce and retail strategies uphold its overarching commitment to its consumers to deliver the best-in-class customer shopping experience.

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