Gamification and AI Drive Lazada's Competitive Edge in Southeast Asia's E-Commerce

Competitive Landscape in Southeast Asia's E-Commerce

Lazada's key advantage in Southeast Asia amid rising competition from new entrants such as PDD Holdings’ Temu and ByteDance’s TikTok lies in technology such as artificial intelligence (AI) and logistics, Lazada Thailand CEO Varitha Kiatpinyochai said on Friday. “With Lazada being part of the Alibaba Group, we can really leverage the best-in-class technology and ecosystem of the group,” Kiatpinyochai stated during the Hong Kong-ASEAN Summit.

Innovative Technology Usage

Kiatpinyochai highlighted how Lazada is using AI to engage consumers, especially tech-savvy audiences in Thailand. One of the latest developments includes LazzieChat, a chatbot utilizing OpenAI’s GPT model to enhance user interactions. Generative AI is critical for Lazada's localization efforts, now available in Bahasa, Thai, and Vietnamese.

Healthy Competition Benefits Consumers

With competition intensifying globally, companies like Temu and Shein push aggressive price strategies using strong ties with Chinese manufacturers. Kiatpinyochai welcomed this competition, asserting that it ultimately benefits consumers who enjoy better deals and customer experiences.

Role of Gamification and Logistics

Other impactful technologies include gamification and augmented reality. Kiatpinyochai noted that games on Lazada’s platform increase user engagement, with virtual try-ons leading to a threefold sales increase. Furthermore, Lazada boasts the second-largest supply chain network in the region, bolstered by support from Cainiao for cross-border e-commerce initiatives.

Future Growth in Southeast Asia

According to data from Statista, revenue in Southeast Asia’s e-commerce market is projected to surpass US$116 billion this year and exceed US$190 billion by 2029, showcasing significant opportunities for growth.