Zalora enhances SEA market entry with flexible fulfilment options

Expanded services cater to brands entering Southeast Asia, optimising logistics and compliance with regional regulations.

Zalora’s flexible fulfilment services are significantly enhancing operational efficiency and market entry for brands looking to establish a presence in Southeast Asia. 

In a recent interview, Matej Urban, Director of Platform Services, described how Zalora, with over a decade in the market, has developed an extensive supply chain infrastructure that is robust yet adaptable. 

“We offer a variety of entry strategies for brands, including cross docking and direct shipment to our regional fulfilment centre in Malaysia,” Urban explained. These options allow brands to mitigate risks associated with market entry by reducing the need for local physical presence and upfront investment.

The conversation also touched on the challenges posed by the fragmented regulatory environment across Southeast Asia. Urban highlighted Zalora’s in-house proprietary warehouse management system, which enables swift adaptation to regulatory changes, ensuring compliance and maintaining supply chain fluidity.

“Our technology, combined with a strong network of partners, provides the agility and scalability necessary to respond to these challenges effectively,” he stated.

Moreover, Zalora’s platform services extend beyond logistics. They also support brands in collecting strategic data, which is crucial for making informed business decisions. “Our services allow brands to gather critical customer insights without the need for extensive local setups. This data includes preferences on product styles, sizes, and colours, which can guide more nuanced market strategies,” said Urban.

Recently, Zalora introduced a multi-channel fulfilment service, known as the 'One Stock Solution', which further reduces market entry risks by enabling brands to synchronise inventory across multiple sales channels, enhancing sell-through rates and reducing inventory ageing. “This approach not only improves inventory efficiency but also helps brands maintain full pricing longer, enhancing profitability,” Urban noted.

Urban also shared insights on how these strategic initiatives have improved Zalora’s own operational efficiency. The company has expanded its warehouse capabilities and integrated advanced automation and AI-driven processes for picking, packing, and warehouse management. “These enhancements have led to significant cost reductions and improved service levels, creating a virtuous cycle that benefits both Zalora and the brands we support,” he concluded.