As the year-end shopping season kicks off, Zalora, one of Asia’s leading online fashion retailers, and part of Global Fashion Group (GFG), is ramping up its marketing to capture consumers’ attention. The e-commerce player recently launched The Terminal by ZALORA, a real-world pop-up, which ran from November 2nd to November 13th. Here, customers could experience a personalised, integrated, and immersive shopping adventure, all while addressing the growing demand for quality and authenti
thentic fashion products. Achint Setia, Zalora’’s chief revenue and marketing officer, told Inside Retail that it was all about creating a seamless customer journey. The Terminal “Our ‘click and mortar’ strategy is designed to integrate the convenience of online shopping with the tangibility of a physical store – where products purchased at the store are delivered straight to customers’ homes to ensure a seamless and engaging customer journey,” he told Inside Retail. According to Setia, the curation of products for The Terminal was informed by the company’s decade-long understanding of the region, as well as data-driven insights from its data solutions service, Trender, to tailor offerings to regional preferences and demands. “This approach guarantees that our assortment not only meets but anticipates customer expectations, resonating with their pre-travel and holiday shopping aspirations,” he added. A noteworthy initiative during the online retailer’s 11.11 campaign was the “shop together to slash prices”, a community-led promo that Zalora introduced, where customers worked collectively to slash the prices of hero items featured on the firm’s platform. “As more customers added these items to their shopping carts, their prices dropped daily. The final price of the item was listed on the 8th of November, at which point customers were able to purchase the product at a fraction of the original retail price,” he noted. Behind this initiative was the vision of increasing exposure and customer engagement for partner brands, while offering consumers premium products at more accessible prices. “It facilitates wider brand reach, quicker inventory turnover, and direct engagement, thereby fostering increased brand loyalty. For our customers, it not only grants them the opportunity to purchase authentic items at a discount but it also empowers them to partake in the pricing process, which enhances overall satisfaction,” he opined. The community and collaboration component of the initiative encouraged customers to share within their networks, bolstering community involvement. In addition, customers were assured of a seamless shopping experience from cart to doorstep. An ever evolving landscape According to Setia, since introducing the click-and-mortar concept in 2014, the company has adjusted to the changing landscape of customer demands. In response to a muted economy, Zalora has strategically expanded its range to include a variety of recognised as well as emerging labels. Furthermore, it has also responded to the increasing inclination towards eco-friendly fashion with the substantial expansion of its Earth Edit and pre-loved categories. By meeting this requirement for sustainability, the company has successfully accommodated the preferences of certain customers, most notably Millennials and Gen Z. In today’s market, cultivating brand loyalty is becoming more challenging due to the discerning nature of consumers, who now seek both premium services and exclusivity, particularly in the online fashion and lifestyle sector. The firm debuted the Zalora VIP (ZVIP) subscription program earlier this year, marking a first in Southeast Asia’s fashion e-commerce landscape, to meet these elevated consumer demands. Despite navigating the region’s diverse regulatory environments, Setia said ZVIP has already attracted a double digit share of its top customers. “We have seen ZVIP members tripling their order frequency and generating a two- to three-fold increase in NMV compared to non-members within just six months of its inception, demonstrating stronger customer loyalty amidst a muted economy,” he added. Just to recap, NMV is the value of both retail and marketplace merchandise being sold through the platform. The future Setia said the company is committed to advancing its AI capabilities to streamline operations and elevate the customer experience moving forward. “By harnessing advanced AI technologies, we aim to refine our platform’s functionality, ensuring smoother interactions and even better customer service,” he stressed. The company is also looking to further enhance its customer loyalty program by introducing exclusive perks and personalised rewards that acknowledge and thank customers for their continued support. “Additionally, we are looking forward to expanding our brand portfolio to better serve the diverse and sophisticated tastes of our customers, offering a broader range of high-end and renowned brands,” he elaborated. Setia reiterated that ‘hyper personalised shopping’ is another area that the company is continuously investing in, further improving its already tailored recommendations to provide a more personalised search and homepage experience. “We are looking to power this even more with generative AI and other new-age technologies to solve size and fit challenges and make it even more convenient and intuitive,” he concluded.