Business Case Study – Lazada
In 2019, Lazada refreshed its brand identity with a new logo sporting a heart logo mark, and a regional campaign themed “Go Where Your Heart Beats”.
This marks the eCommerce brand’s first refresh in five years, since the update of its tagline to “effortless shopping” in 2014.
Developed by Superunion Singapore, the new logo includes a heart logomark manifesting the letter “L” representing Lazada, configured as a three-dimensional box. Other brand elements include a new logotype deemed welcoming and youthful for the digital age, as well as a new palette of Lazada colours that reflect the vibrancy of shopping.
They also carried out a regional brand campaign on 20 Jun 2019, where the 360 campaign are spread across digital, television and out-of-home channel in six countries.
Reason for rebranding
– Deep pocket, backed by Alibaba. Superunion is an international branding agency with 750 people in 12 countries.
– Marketshare game in a typical B2C economy
– Shopee entered in as a competitor, backed by Tencent.
The interim result
According to Techinwireasia, Lazada still lose to Shopee, despite Shopee not having drastic “brand logo changes”
1. Stagnant operation – Lazada’s operation appeared to stagnate during the transition from Rocket Internet to Alibaba
2. Not able to localize products – The main reason for their defeat to Shopee.
3. Talent Loss – An exodus of talent and executives familiar with SEA, who had nurtured Lazada’s rise in the early days, soon followed to the greener Shopee pastures.
4. Unable to meet demand – Lazada cut the number of goods available on its grocery platform, and limiting customers to just 35 grocery items at a time when consumers could not buy their essentials elsewhere.
In fact, in just 5 years, Shopee became the most downloaded app, ranking first in Taiwan and Southeast Asia, and ranking third globally in the Shopping Category.
Shopee also saw a 74.3% increase compared to the previous year of 2020.
Some key Shopee business strategies
1. Supply Chain – Shopee focused on partnering with local wholesalers, especially within the Chinese business circle – a move that Lazada’s European executives tried to avoid.
2. Strategic Partnership – Shopee teamed up with Google to launch Google Ads with Shopee.
3. Brand Ambassador – Partnered with local celebrities and commissioned high-profile endorsers in every specific region.
3. Specialised tools – Shopee allow brands to access specialized marketing tools and boost their online presence. The enhanced Shopee Live allow sellers to reach and engage their customers more. The In-app Games are also designed to address the growing consumption of mobile video content.
Those who participated in Shopee Live and Games experienced a 75% increase in sales.
4. Business Support – Shopee offered a Seller Support Package to help businesses digitize and kick-start their online business through online seminars and webinars. From Splitdragon
Key takeaway – Supply chain + Customer tools + Strategic partnerships + People strategy
While TrustPro will not be able to engage in such a large project, the takeaway should be the same, since this is part of the 7 BE categories.
Also, as we are digital transformation advisors and have the capability and experience to deep dive into specialised tools part.
This is one of the 5 reasons to engage our business strategy services
Quote from TrustPro Instagram –
“Forget about your competitors, just focus on your customers.” – Ma Yun, Alibaba (irony)
Analysis of branding blog
The usual analysis of a branding blog (sharpens our mind to separate the fluff)
– Blog Title: Reach Greater Heights When You Undergo A Rebranding Project
Review: In this case, it is not true and contradicts the blog ending line. Seems more like spending more, and just waiting and seeing.
– When hearing the terms ‘branding’ and ‘rebranding’, we typically notice the more tangible changes such as a new logo, new brand colours and the new look and feel of a physical store.
Review: Yes and it is still a logo with Proven that a logo revamp does not mean much by itself.
– However, what goes on behind the scenes? This article explores the rebranding process done by 2 well-known companies in Singapore, Lazada and Giant.
Review: Does it matter? Results is more important than the process. This is a blog justifying the high costs for this particular agency. Superunion is in a different league.
– The new logo featured a heart to express passion for one’s future and the font used is more rounded and appears more personable. The younger, vibrant colours paired with the gradient effect gave the brand an energetic look while reflecting the dynamism and vibrancy of shopping.
Review: The author missed a key point. The logo is a heart shape that manifests to “L”, for Lazada where this is important for consistency. This shows that there is not enough attention paid to details.
– Let us continue to observe how these rebranding projects transform the companies’ businesses.
Review: This contradicts the blog “clickbait” title. Have shown rebranding itself, like a new logo, new brand colors, is insufficient to transform the business. Shopee did not revamp its logo significantly since 2015, but looks who is the apparent winner.
– Dive deeper into the rebranding process of 2 companies in Singapore.
Review: It is not as deep as intended. Pretty superficial blog post.
Let’s talk about your next business strategy (engineering) project with the option of rebranding for a fuller impact.
Remove the fluff, clear the path, for Success.
#trustpro #businessengineering #businessstrategy #Consultant