E-commerce in Emerging Markets: The Case of Zalora Indonesia

Anniken Døvle

Student thesis: Master thesis

Abstract

E-commerce is a booming business, and not only in developed nations. Many emerging economies are experiencing shifts in consumer purchasing patterns from traditional shopping to online shopping. The evolving consumer also uses the Internet to stay connected and access information, increasing the need for companies to communicate with their customers online. This also applies for the leading online fashion retailer in Indonesia, Zalora.
The purpose of this thesis is to propose an e-marketing plan for Zalora Indonesia, which can help them further their growth in the market. The e-marketing plan follows the SOSTAC structure, entailing a generation of a situation analysis, objectives, strategies, tactics and control, excluding actions based on the outsider perspective on the company. This e-marketing plan will attempt to figure out what factors stimulate or constrain the growth of Zalora Indonesia, and what e-marketing measures can be carried out to achieve growth in the Indonesian online fashion retail industry.
The analysis showed that the Indonesian e-commerce market is still at a relatively nascent stage, where online retail only accounts for 0.6 percent of total retail. The e-commerce forecasts are, however, very promising, with an expected growth in online retail sales of around 60 percent. With Zalora being the largest online fashion retailer in Indonesia, their prospects are highly positive, as long as they optimize their e-marketing strategies.
The findings from the situation analysis showed a need for increased sales, an improved bounce rate, increased credibility, and increased visibility. The strategy and tactics developed for Zalora Indonesia thus support these needs through suggesting improvements within e-marketing fields that Zalora Indonesia have had insufficient focus on. The suggested marketing tactics mainly concentrate on engaging and interacting with customers, as to increase the amount of visits that end in purchase and the acquisition of new customers. If this e-marketing plan is adopted, it is assumed to contribute to the further growth of Zalora in the Indonesian online fashion retail market.

EducationsMSc in International Business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2016
Number of pages105