Following the news that Amorepacific, South Korea’s leading beauty brand, has signed a Memorandum of Understanding (MOU) with Southeast Asia’s leading e-commerce platform, Lazada Group, to expand its brand outreach across Southeast Asia, Shagun Sachdeva, Consumer Insights Analyst at GlobalData, a leading data and analytics company, offers her view:
“With this collaboration, Amorepacific aims to capitalize on Lazada’s digital capabilities and wide customer base to build a strong omni-channel marketing platform in a bid to strengthen its market share across Southeast Asia. The calculative move by Amorepacific is an effort to shift its focus from shop-centric model to one that is more customer-centric and virtually borderless by solidifying its virtual presence. Most of the key manufacturers are looking to leverage on collaborative advantage in the Asian market as, according to GlobalData, the cosmetics & toiletries market in APAC has increased from 165.1m in 2017 to 176.5m in 2018, and is projected to reach 225.5m by 2023.
“Lazada Group is already a market leader in the e-commerce platform, therefore, the deal will be instrumental in laying the digital roadmap for Amorepacific and boosting sales through optimization of existing retail touch points. Lazada, operating in more than five countries with a 550 million customer base, hopes to grab a bigger slice of the region’s online retail market in fast-moving consumer goods.
“With the current trend of digital transactions and structure of the online platform market, manufacturers are aggressively stepping into the hugely profitable omni-channel platform. By leveraging this strategic partnership, both Amorepacific and Lazada will play a pivotal role in providing a unique brand experience for evolving customers in Southeast Asia across various channels.”