TUESDAY, March 19, 2024
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Tesco Lotus aims to double online shopping every year

Tesco Lotus aims to double online shopping every year

THE UK-based hypermarket chain Tesco aims to double its online shopping business in Thailand every year for the next three to five years.

Wanna Swuddigul, digital and online business director for Tesco Lotus, said yesterday that the growth was in line with greater demand of today’s consumers for instant access to information, products and services they can buy at the tip of a finger.
“The majority of our online customers are in Bangkok and key cities. From our data collected by Dunnhumby, 77 per cent of our online customers are female. 
“The largest age groups are 25-44 years old. Most online customers are mid- to up-market customers. 
“As demand tends to come from customers living in urban areas, Tesco Lotus has recently introduced a new delivery service at lockers located at 48 condominiums along the BTS and MRT lines, in prime residential neighbourhoods such as Sukhumvit, Sathorn, Ratchada, Phayathai and Phaholyotin,” she said.
Every year, the number of digitally savvy customers has grown exponentially, thanks to the spread of the Internet and mobile technology.
“Tesco Lotus pioneered the digital platform in 2012, the first retailer in Thailand to have done so,” she said. 
The digital platform comprises two key components.
One is e-commerce. Products are offered to customers through two main online platforms. One is Tesco Lotus Shop Online with more than 20,000 product items, including fresh food.
Customers have the choice of ordering on their computer, tablet or smartphone or via a mobile application.
The other e-commerce outlet is the Tesco Lotus shop on Lazada, where more than 9,000 product items are available. 
The other key component is Digital Connection, which Tesco Lotus uses to communicate with its customers every day, through social media and other online channels. 
According to data from “We Are Social” last year, there are 38 million Internet users in Thailand, which equates to a 56-per-cent penetration rate. About 45 per cent use the Internet on mobile devices, for year-on-year growth of 30 per cent. 
“That’s why Tesco Lotus is focusing more on expanding our digital platform through mobile devices to capture the trend,” Wanna said.
The key success factor behind the rapid growth Tesco Lotus has experienced since 2012 has been customer insight, she said. Armed with this most valuable information, the company has been able to continue innovating services that address the needs of its online customers.
“By constantly listening to what our customers want and need, we innovate services and solutions that address their pain points,” she said. 
The new delivery services, including bike delivery, click and collect and locker delivery, are examples of how the company listens to its customers’ needs, she said. 
What enables Tesco Lotus to be the No 1 retailer in online grocery shopping is its ability to leverage on its expertise and potential offline, she said, and use that expertise and knowledge of customer behaviour, supply chain and logistics to manage and grow its online platform effectively.
Online sales’ contribution to Tesco Lotus’ overall sales is in the single digits, because of the size of the company’s business.
“However, we aim at least to double the growth of our online sales and order numbers every year, as we have done since the launch of our online business in 2012,” Wanna said.
The online shopping business at Tesco in the UK and other European markets is very mature, compared with Thailand and other Asean markets that, although growing at a rapid rate, are still developing.
The average online basket size for shoppers at Tesco Lotus is 3.5 times as large as at the store. 
Online customers’ No 1 thing is convenience. That’s why they are willing to pay a premium to save time otherwise spent going to the store, Wanna said. 
The best-selling product categories are cold beverages, household chemicals and cooking needs, such as seasonings. This clearly reflects the hypermarket’s core customers, who are women as well as mothers and homemakers, she said.
 
 
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