Marketplace or enabler? Zalora wants to be both

IN FOCUS

In today’s newsletter, we look at:

• Zalora’s opportunity to become an ecommerce enabler for fashion brands
• ShopBack layoffs a sign that the ecommerce hangover isn’t over
• Sea’s upbeat outlook for Shopee – and whether or not it can live up to the hype

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Hi there,

I’ve been accused of being an enabler. Nowadays, the term is used in the context of a person who supports someone else’s bad behavior. This often comes from a place of good intentions but is not a positive trait.

In business and tech, an enabler has a decidedly more positive meaning, referring to one that makes something possible.

Zalora wants to be that for brands looking to sell more online.

As my colleague Melissa notes in this week’s featured story, its experience as a fashion-focused marketplace can be an asset in helping brands with digital sales, especially in areas such as logistics. The big pain point in fashion is returns – about 24% of online apparel orders are sent back – and Zalora has the specialized skills and infrastructure to manage this process.

However, the market for ecommerce enablers in Southeast Asia is crowded, with players such as aCommerce and Synagie offering end-to-end solutions.

While Zalora’s background as a marketplace gives it certain advantages, it also leads to questions about whether it can support brands across all trade channels they want to sell on – even if this includes competitor platforms.

Meanwhile, in this week’s Hot Take, I look at ShopBack’s just-announced layoffs and what they tell us about the state of Southeast Asia’s ecommerce sector.

— Simon

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THE BIG STORY

Zalora forges new identity as ecommerce enabler, seeks growth beyond marketplace

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THE HOT TAKE

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NEWS YOU SHOULD KNOW

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FYI