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Lazada.com.ph aims to be the Philippines' no. 1 online shopping: Can it beat Sulit.com.ph?
| 24-August-2012 | |
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Owned by a Germany-based Rocket Internet GmbH, Lazada.com.ph (Lazada Philippines) ambitiously aims to be the no. 1 online shopping in the Philippines by yearend. I think this company wants to beat the Filipino-owned Sulit.com.ph which was founded by RJ David. Sulit is currently the no. 1 online shopping in the Philippines. We know both of them are online shopping sites. The main difference between the two is Sulit's revenue comes from advertising (ad-driven revenue) and Lazada's revenue comes from product sales (product-driven revenue). Do you think Lazada can beat Sulit? The main criteria we will consider here are:
Website Traffic Website traffic plays a major role in sales conversion. High traffic means more sales. More sales means more revenues. In terms of traffic, Sulit.com.ph has 17x more traffic than Lazada.com.ph based on Alexa as of August 23, 2012.
This means Sulit has more potential customers than Lazada Philippines. If we liken them to commercial establishments, Sulit is like a typical SM Mall where there's a very high foot traffic while Lazada Philippines is like a typical small Gaisano Mall where there is lesser foot traffic than SM Mall. And based on Alexa ranking, Sulit.com.ph made it as the no. 1 local website in the Philippines, which also means as the most visited website in the Philippines. If we ask the question, "Can Lazada.com.ph beat Sulit's website traffic?" I think, NO. Sulit invested heavily on Search Engine Optimization (SEO) that made it as the most-trafficked website in the Philippines. If you search a particular product in Google using certain keywords, you will probably see four Sulit links that would land on top of Google search results. The only caution for Sulit is that it will remain on top of Google's search results as long as Google's algorithm is in favor of them. How about Lazada.com.ph? With many competing websites and established online shopping sites in the Philippines, Lazada.com.ph can hardly drive much traffic such as Sulit can do. Its traffic highly depends on Google Adwords, a paid-to-click advertising program of Google Inc. Have you notice that when you surf the net, you can see some Lazada ads Google seach results and in some websites you've visited? You can also see some Lazada ads in Facebook. Yes, they pay for that ads in Google Adwords and in Facebook. That means Lazada pays for a huge amount of traffic to their website. But those ads that they pay translate to high sales conversion on their products. The difference of the quality and rate of sales conversion of the website traffic between Lazada and Sulit is hard to determine since Sulit is also investing in promoting their website in Google Adwords and Facebook. And both of them are also investing in TV commercials for advertising campaign. However, I think Sulit.com.ph will remain to be winner in terms of website traffic until year-end. Revenues Sulit.com.ph admitted that it earns "seven-digit" monthly. In other words, Sulit earns within the range of 1 million to 9.99 million per month. While Lazada.com.ph doesn't announce yet its earnings. Therefore, we cannot measure them in terms of revenues due to Lazada's undisclosed earnings. Maybe by year-end, Lazada will disclose their earnings to the public because they announced that they aim to be the Philippines' no. 1 online shopping by year-end. So, we'll wait for that or for any earnings pre-disclosure. User-Likability We know the users/customers are the main judge which of the two they like most. And I know some of you are Sulit users or Lazada users.  To measure the user-likability of the two sites, let's make a vote between the two:
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