Business to consumer (B2C) e-commerce relies heavily on capital investment and economies of scale. In previous years the fashion e-commerce industry has seen many mergers due to this. The e-commerce space in Asia is still fragmented, but still startups with venture capital are leading the way.

The first challenge for any fashion e-commerce startup is to build a dynamic, customer servicing website. The second, toughest challenge is the ability to generate enough traffic online to ensure the business is sustainable.

In Southeast Asia the online marketplace is still very small. Only one in four consumers over the age of 16 has ever made a purchase online, according to a survey by Bain & Company and Google. Southeast Asia’s online retail penetration level sits at just 3% of all commerce. This figure has grown in recent years and is likely to grow further with internet penetration. But it still remains a developing industry that few offline retailers have jumped into.

Over and above the slow growth in e-commerce, Southeast Asia faces many other difficulties. Challenges like:

  • Building a user base in many diverse emerging markets.
  • Marketing spend and other upfront costs.
  • Low credit card penetration – credit card penetrations in this developing market sits between 5% and 6%.

Many e-commerce customers in this region require an option for cash-on-delivery (CoD). Restricted payment options and unreliable delivery infrastructures makes this a tough market to crack.

The low level of e-commerce and restricted infrastructures is a challenge for many fashion e-commerce startups in this region.

The solution?

Fashion e-commerce startups are faced with high initial costs like investing in advertising. This cost is critical to building a customer base and brand awareness. Effective advertising requires experienced in-house media buying teams.

Brand control today is at the hands of the consumer. The tech-savvy customer are unsubscribing from emails, disregarding commercials and enabling ad blocking software. Brands that want to connect with potential customers need to be clever about advertising spend.

With any fashion e-commerce startup you need to ensure the reach and frequency of advertising efforts are consistent. Along with understanding your customer acquisition costs.

Display Advertising

The Siren Group team of experts came up with creative ways to find an edge over the competition. Through optimization and tracking of each display campaign, Siren Group were able to increase overall CTRs (click through rates).

Benefits of Siren Group’s display advertising capabilities included:

  • Improved click-through rates and conversions
  • Serving contextual targeting ads (text and rich media)
  • Contextual and behavioral targeting ads (content and keyword based)
  • Real-time monitoring of performance indicators
  • Detailed and personalized analytics report
  • Display campaigns integrated with paid search
  • Targeting & segmentation best practices
  • DMP technology for lookalike audiences. Helped to attract customers with higher than average repurchase rates.

Social Media Advertising

Southeast Asia has one of the highest penetration of social network usage among internet users in the world. Indonesia and Philippines has the highest penetration rate with over 110 million people, representing over 80% of internet users, regularly logging on to a social network. Facebook has been the key growth driver for this forecast.

Social networks are highly valuable for driving product awareness and discovery. Siren Group helped to reach a targeted audience through various campaigns run across relevant social media networks, by:

  • Producing exceptional quality Ad copy.
  • Improving overall engagement, conversion and click-through rate resulting in a high number of quality leads generated.
  • Identifying important demographic profiles – resulting in higher than average transaction value (ATV) with each customer.
  • Enhancing the percentage of share of traffic being driven by each social network to ZALORA’s site.
  • Increasing brand awareness – generated over 100,000 new customers.

Siren Group, through performance based marketing data-metrics and technical know how, helped to acquire new customers that were more valuable than the average customer. With higher than average basket sizes and repurchase rates.