Lazada leverages cloud and AI to boost business

Lazada, a top e-commerce platform in Southeast Asia, has been able to progress towards its goal of serving 300 million customers by 2030 through introducing innovations that are driven by Alibaba Cloud infrastructure.

Lazada has been operating on Alibaba's infrastructure and Alibaba Cloud middleware since 2017, shared Raymond Yang, Chief Product Officer of the Lazada Group, at the recent Alibaba Cloud APAC Summit in Singapore.

Some of the new features on the Lazada platform have included live streaming, launched in Thailand in 2018, as well as personalised recommendations.

"We don't want users to just come and purchase. We want them to spend time with us, enjoy the moment, really try to experience and explore and watch our new user/customer engagement experiences," Yang explained.

Today, key opinion leaders (KOLs) and sellers host 3,000 live streams in Thailand alone, while Alibaba Cloud's ApsaraVideo Live live streaming platform and content delivery network enabled over 30,000 concurrent viewers to watched broadcasts streamed in six countries during Lazada's last birthday.

Search and recommendations account for half of all transactions on Lazada, Yang added. The platform performs personalisation in real time. When users search for something on the Lazada app, "By the time you scroll down, or return to the home page, the content has adapted to your personal preferences based on behaviour of a second ago," said Yang of Lazada app shoppers. 

"This kind of continuous technology improvement helps the efficiency of the match-making scenario."

According to Yang, visits to pages on product details have increased, as have add-to-cart and conversion rates.

Artificial intelligence (AI)-based image search was introduced in 2019, Yang said, powered by deep learning, big data analytics and Alibaba Cloud AI technology. The feature allows shoppers to take a picture or upload one to search for similar products on sale on Lazada.

Yang said the technology is "especially useful for fashion and electronics, and very marketable" as Lazada shoppers are generally reluctant to search using keywords, and often face cumbersome Asian language input methods as well.

"It's a huge opportunity for new channels to really change or improve the experience of customers here," Yang noted.

Yang introduces the concept of image search.
Yang introduces the concept of image search.

In addition to more precise search results, image search has helped Lazada identify unfulfilled demand opportunities. For example, female shoppers typically search using pictures downloaded from social networks, rather than photos taken on the spot, because they are trying to look for something that a KOL has featured, Yang said.

Today, 500,000 users make use of the image search feature, and 30 million product results are retrieved per day.

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