According to a new report released today by Lazada, online sellers across Southeast Asia have expressed a rosy outlook for the months ahead as the region continues to open up for recovery and growth in the post-pandemic era, with three out of four surveyed sellers sharing the view that the economy will be better in the next quarter.
The survey – the fourth instalment of Lazada’s Digital Commerce Confidence Index (DCCI) – was conducted in the first quarter of 2022 and covers the responses of 766 sellers from Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Of those who participated in the index, 77% said they expected sales to increase by more than 10% in the next quarter. This optimism was buoyed by the continued easing of pandemic-related restrictions, the steady adoption of omnichannel shopping behaviors as well as the advent of major festivals, such as Ramadan in Indonesia and Holy Week in the Philippines.
Seller confidence was apparent across categories but was especially high among those in general merchandise, fashion and fast-moving consumer goods. In particular, 81% of general merchandise sellers said they expected to see a 10% sales growth in the next three months, marking an 11% increase compared with those who said the same during the inaugural index released last August. In light of such expected sales growth, 74% of online sellers planned to further increase inventory by at least 10% in the next quarter while 47% said they would hire more staff.
This boost in confidence coincides with concerns about rising inflation rates, which is also reflected in a greater percentage of sellers citing high operations costs as a potential challenge. In light of these challenges, RedMart, Lazada’s supermarket service, recently introduced initiatives to help households manage rising inflation and food prices, including by making price-comparison features more accessible.
“With the fourth instalment of Lazada’s Digital Commerce Confidence Index, we see that sellers’ confidence continues to pick up as economies bounce back,” said Lazada Chief Strategy Officer Magnus Ekbom. “Online sellers who can better understand digital shoppers’ preferences and category trends will be well positioned to stay competitive and win in the digital commerce industry.”
Key findings from the fourth instalment of Lazada’s Digital Commerce Confidence Index.
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