ZALORA| AGSB MARKMA CLASS | SY 2016-2017
MAY-AUGUST 2017
In terms of platforms, more respondents are reached through social media than any other medium. According to Digital Marketing Philippines, 43% of online users would not mind getting their usage patterns tracked as long as they would receive relevant ads in return--a good opportunity for online advertising. Moreover, 69% of Filipinos rely on information from Social Media channels that influences their purchase decision. This offers Zalora a key medium through which they can convey their message in a way that is easily accessible to their PTM.
I. Insights The survey supports various factors in Zalora’s current marketing strategy. Their consumers are mainly young, educated, employees mostly earning PhP 50,001 to 100,000. It is a good indicator of the PTM’s robust disposable income. Reasons for such can be the country’s continuous economic growth, the rising number of middle class, and high employment rate as published by Philippine Statistics Authority (93.4% as of January 2017). Interestingly, the top five (5) industries with high paying jobs (for less than 5 years work experience) are IT-related; law/legal services; training and development; banking/ financial services; and Actuarial science/ statistics. In this demographic, the cyberspace plays a significant role in how they move in both their workplaces and in recreation. When it comes to awareness, all of the respondents responded in the affirmative. However, conversion is low, with only 52% of them actually having bought from Zalora. This is due to a perceived limitation to the range of items that Zalora carries, and wanting to touch, feel and fit goods (especially clothing) before purchase. Zalora’s efforts at carrying mainstream, traditionally brick-and-mortar brands such as Mango, Topshop, River Island, aims to address perceived limited offerings, while seasonal, pop-up stores in CBD retail areas address their PTM’s need to try before buying.
The company’s ability to deliver within 1-3 days in Metro Manila has given them the advantage of convenience. As the survey stated, it plays a major role in a consumer’s decision to participate in the online marketplace. In addition, the business’ logistics system also enables the company to reach different areas of the Philippines. This gives Zalora considerable access to suppliers and consumers in different territories in the Philippines. Compared to neighboring Asian countries such as Malaysia and Indonesia, the Philippines has a more contemporary and metropolitan approach in fashion. This demand makes the company more competitive in the market by providing fashionable pieces in a convenient manner. The survey has implied that convenience, together with affordable price and variety are priorities when it comes to online shopping. Through strong infrastructure and an active market presence, the business has succeeded in delivering key needs to their existing customers. However, there is a gap between awareness and purchase that must be addressed if Zalora wishes to maintain its leadership of the online retail market.
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