Lazada: Pioneering a sustainable future in e-commerce
Beyond offering a seamless shopping experience, Lazada is empowering sellers to grow and thrive, championing sustainability and nurturing a safe digital environment.
Keen to carry forward the entrepreneurial spirit of their parents, who had weathered the 1997 financial crisis to launch their venture, sisters Khor Yi Thing and Khor Yi Chen decided to steer the family’s traditional dried seafood business in Penang, Malaysia, from bricks to clicks in 2021.Â
Inspired by the success stories of other e-commerce sellers, the Khor siblings launched The Fisherman on digital platform Lazada. Said Ms Khor Yi Thing: “We were guided on our journey as new sellers by the Lazada team, which provided invaluable support in driving traffic and visibility to our online store. Though it involved its share of trial and error, we steadily expanded our customer base.”Â
With Lazada as their compass, the sisters adeptly navigated unchartered digital territory, and now adopt a digital-first approach in managing their operations. Â
EMPOWERING COMMUNITIES THROUGH DIGITALISATION
The impact of digitalisation is not merely evident in the success of The Fisherman. Indeed, digitalisation has been instrumental in empowering micro, small and medium enterprises (MSMEs) across Lazada’s six markets in Southeast Asia – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam – to enhance their competitive edge.
To foster digital transformation within its seller community, Lazada organises regular Seller Conferences to facilitate learning sessions on marketing strategies and digital trends. Between last April and March this year, more than 30 such conferences have been convened across the region. Additionally, its Seller Community forum allows members to connect with one another, and integrates support resources such as Lazada University and Help Centre.
For budding entrepreneurs, Lazada’s four-week Buddy Mentorship Programme pairs novice sellers with seasoned mentors, nurturing a peer-support network. More than 1,000 sellers across Indonesia, Thailand and Vietnam have reaped the benefits of the programme.Â
Thanks to its digital empowerment initiatives, Lazada boasts over one million active sellers who sell on the platform every month, and 160 million active monthly users within its e-commerce ecosystem. Last year, it joined the Asia-Pacific Economic Cooperation 2022 Economic Forum to pledge its commitment to promote inclusive and sustainable economic growth across the region – a core pillar of Lazada’s ESG framework.
“Sustainable development is not only a responsibility but also an opportunity and commitment to the future,” said Lazada Group’s CEO James Dong. “We are committed to working closely with governments and enterprises in the six major markets in Southeast Asia to achieve long-term growth by building a high-quality digital ecosystem. By working together, we can enrich the lives of all participants in the digital economy and build towards a resilient and sustainable future.”
Lazada’s second annual ESG Impact Report delves into three other core pillars – future-ready workforce, environmental stewardship and effective governance – and explores how they align with the company’s sustainability vision.Â
CREATING A BETTER FUTURE FOR ALL
Championing a diverse and inclusive workforce, Lazada employs over 32 nationalities across its markets. More than 1.1 million stakeholders within its e-commerce ecosystem have benefited from economic opportunities facilitated by Lazada.
Under its future-ready workforce pillar, the company has been proactive in addressing gender inequality within the technology industry. According to a Boston Consulting Group report, the regional average for women’s representation in tech stood at 32 per cent in 2020. To tackle this gender gap, Lazada has expanded career opportunities for women – who now make up 44 per cent of its workforce.Â
Employees are further equipped with a plethora of learning opportunities, including workshops, courses and mentorship programmes. Said Mr Dong: “People are the backbone of our business. We remain steadfast in enriching their work experience while building up the skill sets and knowledge of our broader talent pool to remain resilient in a rapidly changing world.”
Among its key initiatives are LazSwitch, promoting career mobility within the company, the Culture Passport programme in the Philippines facilitating cross-functional learning, and GROW – Lazada’s in-house digital learning platform featuring over 1,000 professional courses.Â
Employee well-being ranks high on Lazada’s agenda, evidenced by a variety of programmes and benefits to engage employees, such as company sports days, team-building activities, health screenings and a 24/7 support hotline.Â
PROMOTING GREENER BUSINESS PRACTICES
Mindful of its ecological footprint, particularly in terms of transport emissions and packaging waste, Lazada’s third ESG core pillar focuses on environmental stewardship. The company is progressively transitioning towards eco-friendly operations, streamlining delivery processes, minimising packaging materials and collaborating with like-minded partners to champion sustainability.Â
For instance, Lazada’s grocery arm RedMart carries nearly 30 per cent of locally produced brands, effectively lowering carbon emissions and bolstering homegrown businesses. Since launching its eco range of household cleaning products in May last year, RedMart has reused over 250kg of recycled plastic.
Last year, Lazada introduced the Transport Access Point initiative in Indonesia, eliminating the need for over 20,000 individual delivery trips – equivalent to about 7 million kilometres. This was achieved by coordinating with logistics partners to optimise Lazada’s truck routes, thereby minimising truck usage and reducing carbon emissions.
Overall, Lazada reported a 10 per cent decrease in greenhouse gas emissions compared to the previous year.Â
GOOD GOVERNANCE: THE KEY TO LONG-TERM SUCCESS
The foundation of a successful business lies in its governance, which paves the way for well-informed decisions, strategic foresight and risk management. Stakeholders, in turn, are granted trust and a sense of accountability.
In today’s digital landscape, governance extends significantly into the realm of cybersecurity. Lazada undergoes regular comprehensive audits and has retained its ISO 27001:2013 certification since 2019, underscoring its commitment to data security. In FY2023, Lazada recorded zero substantiated complaints concerning customer privacy breaches or data losses.Â
To safeguard consumers, Lazada rigorously monitors listings on its platform, removing 96 per cent of counterfeit listings before any transaction can occur.Â
For upholding high safety and security standards, Lazada stands as the first and only e-commerce company to achieve the Cyber Trust (Advocate) certification mark, developed by the Cyber Security Agency of Singapore, in recognition of its robust cybersecurity measures.Â
Additionally, Lazada spearheaded the formation of the Southeast Asia eCommerce Anti-Counterfeiting (SeCA) Working Group in September last year. This first-of-its-kind consortium is dedicated to promoting best practices for the protection of intellectual property rights and supporting brands in their efforts to combat infringements.
Said Mr Dong: “As we continue to grow, sustainability will remain our guiding principle. The implementation of Lazada’s ESG framework propels us not only towards success, but also towards responsible, long-term prosperity.”Â
Learn more about Lazada’s FY2023 ESG Impact Report.