Monday, October 28, 2013

How Lazada instigated positive change in the e-commerce industry


The increasing number of e-commerce websites and online shopping stores locally is an undeniable proof that the number of consumers who are slowly becoming accustomed to e-commerce is increasing and it is increasing very fast at a very rapid velocity that is probably close to the speed of sound. That is just me speaking metaphorically or figuratively again. The online shopping website that is on the limelight of Philippine e-commerce right now is lazada.com.ph.  The Company did positively impact the local e-commerce economy and there are lots of economic, social and cultural indicators to prove it. It also affected entrepreneurs in a positive way since e-commerce allows businessmen and people with entrepreneurial knack to set up shop at a very minimal overhead cost and investment. E-commerce is here to stay and it is the future of business. There are several indicators of Lazada’s impact like what we have said earlier. Those are economic, social and cultural indicators. Let us talk about the economic impacts first

Pricing of goods – The Company being in the online retail business is able to offer products at prices lower than regular outlets. Their business structure allows them to purchase products from suppliers at lower prices and pass on the savings to consumers. The consumers are the end beneficiaries here and it contributes to their economic well-being by allowing them to save their hard earned through the purchase of products at good and affordable price points
Quality of merchandise – Huge companies Like Lazada Philippines are always keen on maintaining high value and product quality because it is going to be detrimental and anathema to their success if they will not do so. Huge companies like this are always trying to woo and cajole customers to go and do business with them and they go to great lengths and do whatever it is that they can to preserve their customer reputation so they always make sure that they are putting great quality products out there. The end result again is that it benefits customers and allows them to squeeze every value from their money which has a diminutive but direct repercussion to their economic status.
On the positive cultural impact, and let us just reiterate that these impacts, the economic, social and cultural impacts are not stand alone entities, they are intertwined and they overlap. 

Acceptance of Online shopping as a way of doing business– Having online shopping companies like Lazada encourages sending and adoption of modern and western ways of living which in my opinion are very positive things because it boosts local businesses and thus impacts the overall economy positively.

The positive social impact overlaps with the positive cultural effect of the company, as more and more people are becoming aware of the benefits of online shopping. It also adds more boost to the morale and self-esteem of people especially those from the lower classes, as far-fetched as it may seem, online shopping is sort of a class equalizer where the lower class can do something that was once before confined to the upper class members of society    

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