Lazada uses AI to woo female Gen Z shoppers

Lazada Thailand says it will continue its investment in personalisation based on artificial intelligence (AI), while also renovating its Live selling feature.
The company aims to attract more female Gen Z customers and wants to equip local small and medium-sized enterprises (SMEs) to go cross-border and offer more premium brands, said Varitha Kiatpinyochai new chief executive of Lazada Thailand.
The move is meant to capitalise on Thailand’s highly competitive e-commerce market, which is valued at 980 billion baht.
Lazada Group finally turned a profit in terms of earnings before interest, taxes, depreciation and amortisation in July this year, while Lazada Thailand has been profitable for three consecutive years since 2021.
Meanwhile, YouTube and e-commerce platform Shopee said on Sept 18 it was launching an online shopping service in Indonesia and planned to expand it in Southeast Asia as competition picked up with a rival operator owned by TikTok, according to Reuters.
Under the tie-up, people can buy goods viewed on YouTube through links to Shopee. Executives told reporters they plan to expand the service to Thailand and Vietnam in a few weeks. YouTube Shopping is already active in South Korea and the US.
Ms Varitha said despite economic challenges, Thailand’s e-commerce sector should record double-digit growth over the next 2-3 years thanks to mobile internet and strong payment and logistics infrastructure.
Lazada’s basket size of purchases has increased, especially fashion and beauty items, while premium products remain in demand, she said.
In 2023, Thailand’s e-commerce sector grew by 20% to 980 billion baht, making it the second-largest market in Southeast Asia. Thailand and Vietnam reported the fastest growth in the region.
Ms Varitha said female Gen Z is a growing segment, while the personalised experience is an increasingly important trend in a mature market like Thailand. Around 35% of Thai Gen Z shop online for their families.
She said Lazada would continue to invest in Thailand, focusing on three areas, with the first enhancing customers’ personalised experience through the use of AI, aiming to tap female shoppers and Gen Z consumers. The company wants to increase differentiation among premium and exclusive brands.
LazMall has grown seven-fold in terms of gross merchandise value since its 6:6 campaign this year, and its LaZBeauty channel has more than 1 million members. In the fourth quarter, Lazada plans to launch more exclusive brands in luxury segments.
The second emphasis is more investment in AI and the gamification application, the latter of which has over a million users who spend three times more on the platform, with 82% visiting the app daily. Lazada also launched the Ask the Buyer feature, where AI invites buyers to review products.
Thirdly, the company will empower local SMEs with AI tools to help them sell products in Malaysia, Singapore and the Philippines.