Online sales of beauty and fashion products, as well as online grocery shopping, are seeing notable growth, accompanied by increasing consumer awareness and adoption of artificial intelligence (AI), according to insights from Lazada.
The annual data released by Lazada indicates that consumers are becoming more at ease with online shopping, leading to a significant shift in behavior, particularly within the beauty sector.
By this year, an estimated 56.7% of total revenue from beauty and personal care in Thailand is expected to come from online channels, highlighting the remarkable growth of e-commerce in this area.
According to Kantar’s “Beauty Pulse: Channel Trends in Thailand,” nearly half (47.1%) of beauty shoppers now choose online options for their purchases. This trend is solidified by the fact that 70% of these consumers are repeat buyers, reflecting the data from Lazada, which shows beauty continuing to thrive in 2024.
This shift is further demonstrated by the success of certain campaigns and products, powered by cutting-edge technologies like virtual try-ons and skin analysis.
In the fashion sector, categories such as women’s clothing, handbags, and hair accessories have recently experienced a substantial increase in sales volume. Popular Thai fashion brands have seen nearly a 50% rise in sales on Lazada during the fourth quarter.
Consumer behavior has also shifted significantly towards online grocery shopping, a trend accelerated by the Covid-19 pandemic. Lazada’s recent launch of LazMart in Thailand exemplifies this movement, as it positions itself as an online grocery store, tapping into the growing e-grocery market.
Lazada reports that the rapid expansion of online grocery shopping is driven by consumer demand for convenience and flexibility, with 44% of consumers now ordering groceries online each week. Lazada has experienced double-digit growth in grocery orders throughout 2024, with spikes during festive periods.
The integration of AI is transforming the e-commerce environment. A recent white paper by Lazada in collaboration with Kantar, titled “Artificial Intelligence Adoption in ECommerce in Southeast Asia,” underscores the rising awareness and utilization of AI by consumers.
A significant majority, 88%, of respondents utilize AI-powered product recommendations when making purchasing decisions. Furthermore, consumer confidence in AI-enhanced e-commerce is high, with 92% trusting AI platforms to provide personalized suggestions and 90% relying on AI-generated product summaries for accurate information.
Recently, Lazada introduced AI Lazzie, a virtual personal shopping assistant in the region, designed to offer consumers tailored recommendations, bundled deals, and AI-driven reviews. This initiative aims to facilitate informed purchasing decisions while boosting sales for businesses.
Currently, AI Lazzie is available in English across Singapore, Malaysia, the Philippines, and Indonesia.
