www.zalora.com.

my

DIGITAL MARKETING
(MKT558):
INDIVIDUAL ASSIGNMENT

FACULTY : FACULTY OF BUSINESS AND MANAGEMENT

PREPARED BY : AZLIA ZULAIKHA BINTI AMIJAK @ RAZAK
MATRIC NUMBER : 2020810464
PREPARED FOR : DR AZLIN ZANARIAH BAHTAR
SUBMISSION DATE : 23th APRIL 2021
TABLE OF CONTENT

TITLE PAGES
Company Background 1
• Zalora.com.my
Consumer Variables
• Demographic 2-3
• Psychographic
• Social
Consumer Profile
• Income level
• The savvy professional 4-5
• The modest modernist
• The style icon
Impact of Macroenvironment
• Political forces
• Economic forces
• Social forces 6-8

• Technology forces
• Legal forces
• Environmental forces
Conclusion and Recommendation 9
References 10
COMPANY’S BACKGROUND

ZALORA.COM.MY

Zalora Group and Global Fashion Group (GFG) is a part of the world’s leading fashion
group which is Global Fashion Group. This group help online fashion companies to market
their business. Zalora was established in 2011 and founded in early 2012 presented in Southeast
Asia such as Malaysia, Singapore, Taiwan, Hongkong, Indonesia, Philippines, and Brunei.
Zalora was focused on e-commerce site in Asia. Zalora can been found at their website which
known as Zalora.com.my.

In 2014, Zalora has opened marketplace where provided a diverse collections not only
local collections but also regional and international brands and customers can shop with got
ultimate shopping experience. Zalora offering and welcomes any kinds of brands that want to
collaborate with. Hence, marketplace is platform that can increase acknowledgement of brands
which is a chance to the merchant to enhance their branded products to be known by buyers.
Besides, Zalora also has its own social media such as Twitter, Facebook, and Instagram
accounts. From social media, it will help them to interact and get closer to the customers as
well as to promote products that are available to purchase in their websites.

Zalora offering a large scale of fashion collection of over 500 top international and local
brand and designers. A thousand categories of products across men’s and women’s fashion
apparel, accessories, shoes, and beauty categories in their websites. Customers can shop in
websites with varieties of products from the international and local brand. Customers can
discover all the products from over 3000 brands across a variety of categories include essentials
and home & living products.

Zalora providing shopping online experience through website that can explore across
desktop, tablet and mobile. Zalora have providing multiple payments for their customers,
including cash-on-delivery across its market. Zalora also provide Zalora’ Visual Search
Function to make easier for shopper to buy products based on their styles. Besides, over 50
million of customers visit Zalora’s website per month. Hence, it shows that Zalora is a curated
platform where customers can find all the products, they want to buy in one place which it is
easier to the customers.

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CONSUMER VARIABLES

I. Demographic
Demographic is including age, race, gender, and income. It is critical for
company to look the demographics of their customers to present a better trait that can
support company’s business. At Zalora, it’s have discovered that its market share was
dominated by women compared to the men which customer base comprises of 80%
women and only 20% of men. It shows that women will be preferring to buy online
rather the men. This is because, many of women embraced the wonders of the internet.
Besides, women love to make comparison with similar products in different brands.
Subsequently, there are variable demographic age for customer’s Zalora where
customer below 21 years is about 5% contribute in Zalora’s market share, 16% for
customer range 21-25 years, 24% range at 26-30 years, 31-35 years contribute at least
20%, 17% for range age from 36-40 years and 18% for above 40 years. As we can
conclude, customer’s Zalora was come from adults’ people which 24% for 26-30 years.
This means that the average of people is individual who have fully harnessed and have
purchasing power. Meanwhile, Zalora’s products also influence based on region and
ethnical of customers. In Southeast Asia, there are multiplicity region and ethnical to
embraced. Hence, Zalora need to consider how many factors in shaping consumer
demand. In other hand, people on all level of income also can buy products provided
by Zalora. This is because a price is affordable even though from lower income level
also can afford it but may afford for minor expenses.

II. Psychographic
According to Zalora, purchasing power leading of women compared to men.
This is because today the roles of women have changed which day-by-day woman rise
their empowered and becoming the decision-maker. Therefore, purchasing habit is
dominated by woman especially millennial’s woman. In addition, mostly shopper had
higher in fashion and shopping online interest. Thus, shopper willing to take fashion
risk and financially constrained. In other words, attitudes, opinions, and belief also take
a part in market segmentation. For example, customers were comprised of deeply
religious might consider as displaying modest. subsequently, nowadays based on
lifestyle and personalities, there are some new types that called the stylist icon. The

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 stylist icon is individual with higher education about fashion thus be icon to other
people. For instance, Instagram influence where they been icon to the new generation
that want to learn about fashions.

III. Social
As we know, every country has occasion for their festivities. In Malaysia,
festivities such as Chinese New Year, Eid, and Thaipusam has involved in growing
demand of market especially traditional wear surrounded by each region. traditional
wear it can be cheongsams, sarees and baju kurungs where people will wear it in special
occasion, as well as other events like weddings, kenduri and formal gathering. In
Southeast Asia does need clothes around the season such typically like West. There no
need wearing special clothes for autumn or winter. However, customers will be
demanded for traditional wear in region’s numerous festivities.

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CONSUMER PROFILE

Consumer profile is a characteristic of customers that they have in common where will
purchase from the websites. There are several consumer profiles that have been customers for
Zalora.

I. Income Level
For income level, customers with the highest income level have most spend
their time to shopping in Zalora website. Usually, individual that age group of 26 to 30
years old. This is because Zalora provided authentic local and international products
which it supposedly has higher range price for the products. Thus, customers with
higher income level able to make the purchases in Zalora’s website. Besides, this group
contribute to 24 per cent of the total Zalora market share. However, that does not mean
average income level cannot buy because Zalora also has provide affordable products
for their customers.

II. The Savvy Professional

For savvy professional is individual that knowing a lot about fashions and new
trend. This kind of group are usually using fashions to elevate status for themselves.
Besides, customers with the kind of this personality only buy brand conscious but it is
not necessarily driven by trends. Approximately, individual that buy in Zalora website
has craves exclusivity for the products to suit their lifestyles. Furthermore, the savvy
professional’s group are contributed in 10% of distribution within Zalora base. This
group comprised of Millennials and Gen X people.

III. The Modest Modernist

This group is for individual who are often changes his or her fashions that
followed the trends with cultural and religious value. There are contribute 14% in
Zalora’s market. Besides, individual under this group has strong moral and ethical
compass which they are willing to invest in personal grooming. They are browsing
some products that have self-respecting and propriety in their lifestyle especially in
dress and accessories. It skewed toward Gen X and Millennials.

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IV. The Style Icon
Individual that is very well known as being highly fashionable which they have
a discerning taste profile. Distribution within in Zalora base is only 5% for this kind of
group. However, the style icon’s group have higher disposable income which they can
buy any kind of products and brands in Zalora’s websites. This individual usually has
a strong sense of personal style where they can be as icon to the people. This group also
represent by Gen X and millennials people.

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IMPACT OF MACROECONOMICS

I. Political forces
The political environment is a country that will been affected by economic
environment such as government policies, tax regulations, political control, and
democracy which it is control the markets and intermediaries and internet governance
where it is crucial for online business because it is control the operation and use of
internet. Political force can a mess of the supply chain to the Zalora and it can give
higher difficulties for the brands to collaborate with Zalora. Hence, to overcome that
problem, Zalora limiting its supply chain operations to its home country and
neighbouring nation. From this action, it can reduce the threat from political force and
can operate with the friendly political environment. Besides, politics in Malaysia
decides what types of support that the store gets and the kind of market intervention
that is suitable for the store function. This is because Zalora is the biggest online store
in Malaysia.

II. Economic forces

Economic activities for any country also important to the business. The level
of economic activity can influence on how market operate in the country. Other than
that, economic factor plays crucial roles in business where from economic force we can
see how to increase the market performance, employment and working pattern in our
country and income. Besides, company need to know how to get customer’s buying
pattern by looking customer’s expenditure. Zalora make a great strategy which
provided its products with affordable price. Zalora does not only focus on higher level
income but its also provide price that are suitable to all level of income in their certain
products. In this way, if the economic activities were declined and customers need to
cut their cost, they may change their buy behaviours from the luxury brand to standards
brands. However, Zalora no need to worry because its sell products with affordable
price. Affordable pricing is just one of the considerable strategies to helps company
fight off when the economic activity at lowest level. Lower economic activity will
decrease the purchasing power of the customers because they start to cut their
expenditure and buy necessary goods only.

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III. Social forces
Social forces also important in case of business where people’s decision
buying is based on what their culture. Frankly, social forces are linked with culture and
social trend at the time where every company must alert the changes of that trends. This
is because social forces are the main strategy to interact people to buy the products and
increase profit in business. Before entering the market, Zalora has minded this aspect
is the one of its strategy. Zalora research new cultures for nation and market before
declaring new products to the markets. Diversity of region also plays crucial role in
determine what products acceptable for each region where in Southeast Asia’s have
varieties region such as Islam, Hindunism, Buddahism and Christianity. For each region
give its own perceptive and style in fashion that Zalora must alert what their styles. In
addition, nowadays online shopping is a major trend for all country. As observed,
Zalora was discovered that market share was dominated by Gen-X and millennials
which individual was born in year 1980 until 2010. This is because these groups are
comfortable with digital world and spend more in online shopping and customers
mostly want to buy something easily where their only tap of the button and the items
arrived at their home. These kinds of system will give advantages to Zalora promote
brands in the market and Zalora is still have a popular website along with to the shopper.
Overall, its give positive trend when Zalora allows to collect healthy profit margin from
shareholder and maintain its quality of products to the customers.

IV. Technology forces

Changes in technology globally making people must followed new trends with
learn how to use technology in their life. Year by year, technology have been known
not only from Gen-Z but also all generation. Changes in technology make a faster rate
that are related to the business such as in terms of transport, communication and other.
Moreover, technology helps company to develop their product especially in marketing
department. In marketing department, technology helps by create marketing
opportunities to the marketer such as promote company’s products, create new platform
and introduces new products. Zalora is one of the brands that also use technology to
expand their business its reach. Zalora use technology by create a website to sell its
products that collaborate with other brands. Besides, Zalora also provide social media
such as Facebook, Twitter, and Instagram to interact with customers and study about
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 customer buying behaviours. Zalora enabled to respond to customer demand quickly as
well as coordinate its supply chain and logistics. Furthermore, Zalora use an RFID
system for tracking inventory thus increase the pace of inventory counting. Hence,
Zalora can pull off some effective system in supply chain.

V. Legal forces
Zalora focused on ethics and sustainability across its business and supply
chain. Instead of Zalora give good services to customer, its also implement law that
related to the business. Apart from it, Zalora creating an ethical brand image. In
addition, Zalora also applied programmes which guarantee living wages for its
employment. Hence, employee welfare can maintain, and they will give for the best
cooperation to the company. In other hand, since Zalora always followed new trends
products and making its products affordable, its jump into some issues with copyright.
Copyright is known as stealing design and concepts from other retailer and make as
own design. This issue is one of scariest legal law by government. Compliance with the
law is very much emphasized by Zalora to ensures that all brands obey to the law in the
market wherever it operates.

VI. Environmental forces

Environmental force become one of the important concerns for business
globally. Zalora has invested in sustainability in market where its parent company
Inditex has vowed to make its store 100% eco-friendly and efficient by 2020. By its
plan, Zalora stores will reduce energy and water as compared to the regular store. These
stores will be provided equipment that have energy efficient and better cycling features.
Zalora also eliminate of all kinds of hazardous waste from it supply chain to avoid any
pollution happen. In addition, Zalora also spent environmental wear or clothes arranged
from organic material using sustainable technology. Therefore, Zalora will continue to
thrive even under scrutinous in future.

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CONCLUSION

As a result, online market is growing rapidly, however its variety division

present unique challenges. Zalora developing its own capabilities and success to overcome
every challenge that its faced. Zalora established in the digital market to fulfil an ambitious
goal which one its goals are to bring all brands to everyone, especially its customers. Besides,
being online market gives Zalora the chance to target customer efficiently through the varieties
online advertising such as Google Ads, Facebook Ads, and others. From analysis, Zalora have
higher usage of social media in the region to connect with its customers. Thus, Zalora can
identify what kind of consumers variables and consumers profile that shop in its websites. It is
similar with target the right customers by advertise about products and brand collaborated with.
Hence, it helps Zalora to start-up to control its marketing budget by only using data and
technology. However, Zalora need to bring new customers to the website if it wants to reach
to a wider audience at the top of market share. In addition, Zalora should emphasize the impact
of macroeconomic when involve in digital marketing. It is also needed to focus customers
demand by interact them on the website or social media.

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REFERENCES

1. Chaffey, D., & Ellis-Chadwick, F. (2020). Digital marketing. Pearson.

2. Clara. (2016, November 18). ZALORA: the online revolution of the fast-fashion
industry. Technology and Operations Management. https://digital.hbs.edu/platform-
rctom/submission/zalora-the-online-revolution-of-the-fast-fashion-industry/.

3. Daylight Time, E. (2020, May 28). ZALORA and The Trade Desk Bring New
Measurement Capabilities To Brands in AsiaEastern Daylight Time. Business Wire.
https://www.businesswire.com/news/home/20200527005224/en/ZALORA-Trade-
Desk-Bring-New-Measurement-Capabilities

4. ZALORA Malaysia: Online Shopping for Fashion & Beauty. zalora.com.my. (n.d.).
https://www.zalora.com.my/.

5. https://www.academia.edu/30472964/Supply_Chain_Management_at_Zalora_an_e_c
ommerce_company

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