UM Singapore will manage media duties in Singapore, while ZenithOptimedia is tasked with media planning and buying in Malaysia and Vietnam. Mindshare is believed to have won the business in Indonesia.
This is the first time Lazada will be working with external agencies, a source said. The Singapore business was won earlier in the year, while the other regions were finalised late last year. Campaign could not confirm the names of the agencies that participated in the pitch.
The move comes as Southeast’s ecommerce market is poised to explode. Currently just 0.2 per cent of retail sales are made online, but a 2014 UBS report estimate the market will balloon five-fold in the next five years. Lazada is naturally keen to grow user growth. The company saw volume growth growth touch $70 million in December 2014 alone, with 40 million unique visitors that month.
“Lazada is one of the pioneering ecommerce brands in the region,” said Martell Hardenberg CEO of Lazada Singapore. “We have ambitious growth plans and look forward to UM’s contribution in our journey ahead.”
UM Singapore’s MD Pat Lim said Lazada has grown rapidly in the region and has attained a great reputation for its service and products.
Launched in March 2012, Lazada has grown rapidly to include over 4,000 employees across Southeast Asia. The company has an online footprint of more than four million daily visits to its websites.