LAZADA INTERNSHIP REPORT

Bài báo cáo thực tập bằng tiếng Anh chuyên ngành quản trị kinh doanh. Sinh viên Đại học Quốc Tế Đại học Quốc Gia thành phố Hồ Chí Minh. Công ty thực tập: Lazada Việt Nam Vị trí thực tập: Commercial intern FMCG

HO CHI MINH CITY - INTERNATIONAL UNIVERSITY

I. Executive summary of the internship

Summary of the company

Launched in 2012, Lazada Group has grown to become the leading online shopping and selling destination in Southeast Asia The company has about 5,500 employees in the region, with operations

in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, and a team in Hong Kong that drives cross-border marketplace activities Lazada also operates technology hubs in Ho Chi MinhCity and in Moscow Lazada’s strong performance has earned the support of key investors such as Alibaba Group, Temasek Holdings and Rocket Internet Working at Lazada means to be part of the team that is steering the exciting E-Commerce revolution in Southeast Asia

Summary of the internship program

The Internship Program is designed for fresh graduates of different majors, who are eager to bring theacademic knowledge and apply it in the business working environment The applied position was Commercial intern, line FMCG (Fast Moving Consumer Goods), category HB (Health & Beauty) Main activities carried out by a commmercial intern during the internship are:

•Send content templates, call to explain required input and follow up

•Coach sellers on content guidelines (descriptions, images)

•Prepare and update overviews of content pipeline, backlogs and progress

•Be the central coordinator and work with our sales department, content department, data team

•Seeking and Updating Supplier Database regularly

•Updating all information of products to related departments following the standard procedure

•Researching and analyzing about competitors in online and offline market

•Planning, implementing and optimizing various internal projects

•Support Buyer and Key Account Manager for others job related to merchandising

INTERNSHIP REPORT

SEMESTER 1 2016-2017

Student name: Nguyen Thi Anh Tuyet ID: BABAWE12088

Instructor: Mr Phan Truong Quoc

Internship information

Starts at: October 3 rd , 2016

Ends at: December 30 th , 2017

No of internship days: 90

Position: Commercial Intern – Category FMCG – Line Health & Beauty

Company: Lazada Vietnam, trade name: Recess Company Ltd

•High self-motivation and willing to learn

•Dedicated highly responsible, hard and smart working

•Pro-active and ability to work under pressure and tight deadline

•Good communication and interpersonal skills

•Good knowledge of English language and of Microsoft Office suite (Word, Excel)

•Enthusiasm for e-commerce and its opportunities

Internship Duration: 3 months Working hours: 9a.m – 6p.m

Full title and brief history

Lazada Vietnam, international trade nameRecess Company Limidted is a member

of Lazada group

Tower, 138-142 Hai Ba Trưng St., Da Kao wd., district 1, Ho Chi Minh city

Binh industrial park, Binh Tan district

Dang st., Thanh Luong ward, Hai Ba Trungdistrict

• Employees: Over 1000

• Web link: www.lazada.vn

Main events:

November 2012: Set up a Tech Hub in Ho Chi Minh City, Vietnam, to focus on technology

infrastructure and product development which is critical to develop a superior online shopping

experience

December 2012: Sparked a shopping frenzy with the first Lazada Online Revolution campaign on 12th December in all five countries, signalling the online shopping revolution that is coming to Southeast Asia

In May 2013, introduced Lazada Express to supplement third-party logistics partners in providing last-mile delivery service, expanding Lazada’s geographical reach and further improve customer experience

June 2013, Launched Android mobile application, tapping into the growing mobile wave in the region

July 2013: Started rolling out Lazada Marketplace, offering comprehensive support to sellers to grow their business through eCommerce

November 2013: Extended Lazada’s Online Revolution campaign to a month long, from 11th

November to 12th December, following the success of the previous year’s campaign

April 2016: Entered an agreement for Alibaba to acquire a controlling stake in Lazada, validating the

Business sectors

Lazada’s assortment have come up to over 1 million products, divided into 4 big categories ranging from Electronics, Home, Fast Moving Consumer Goods, to Fashion and Accessories Products can bereached through 2 platforms, desktop and mobile app Eventually, payments are made via online channels or on delivery

In Vietnam market, thanks to LEX (Lazada Express) subsidiary company, products are shipped nationwide

However, actual stocks are operated and managed differently due to their business sector,

marketplace (MP) goods or retail goods

Ecommerce marketpace

Lazada provides a marketplace solution, connecting merchants with final consumers through one simple channel – lazada website This is a service sector in which main activites are providing tools for merchants to serve their consumers These tools include marketing solutions, suppliers’ accounts, management information technology, promotion, logistics, etc

online retailer

Lazada also acts as a retail distributor for specific brands and sellers Main activities are buying, promoting, selling, etc to final consumers

For Retail sector, customers are final consumers from all segments Nevertheless, only internet users with full identity can be the direct buyers Brand/seller partners’ products, despite the smaller

assortment, are managed more strictly and must go through a complex procedure from agreements to Quality Control (QC) process They operate business with Lazada under consignment or as a retail distributor Under the term of Consignment, stocks may be refunded to brands/sellers Otherwise, Lazada can choose to buy and sell brands’ products as an Online Retailer

Lazada’s strong brands partnership

Mamy Poko,

• Fashion & Accessories Invicta, Planet Sports, Penshoppe, New Look,

Affiliate marketing Beside the 2 main business sectors, Lazada also provide Affiliate Marketing

business opportunity for all web content owners Commission is 8% for normal content owners However, partners with high performance, partners of Lazada’s strategic brands, may be pomoted for higher commision level up to 15%

Lazada Vietnam Organisation structure

Pierre Cahuzac Chief Marketplace officer (CMPO)

Gerald Glauerdt Chief Operations Officer

Logistics

Supply Chain Management

Customer Service

Strategy and Planning

Tran Ngoc Tran Chief People Officer

Truong Duy Linh General Counsel Le Vinh Son

Director of Product

Marketing Marketing department chart

Chief Marketing Officer

ts n on line m ark eti

ng cha nne ls

nt s pen din g

Online marketing

•

Cam pai

gn pla nni

ng and ex ecu tio n

•

Gro

w a

pp use

rs and sa

le c ont rib uti

on

on m obi le

Campaign & Mobile

•

Max im ize po sit ive co ver age , e ar tic les, pr ess ,

•

Han dle cr isi s

•

bui

ld b ran

d e qui

ty thr oug TV

C, a cti vat ion s,

.

PR & Branding

•

str ate gic : a cqu ire st rat egi

c p art ner

s w hit

h d eals /pr om oti ons

to h unt fo

r n ew ca mpa ign

s a

nd NM V

•

Ret ail:

Gen era

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nd NMV fr

o b ran

ds a

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Partnership

•

Cre ate an

d a dm ini ste

r si tes en gin

es f

or m axi mum re ach

•

Con ten

t d eve lop er

SEO

•

Dat

a g ene rat ing an

d a nal yzi

ng

•

Per for man

ce rep ort

BI

Roles and responsibilities

Commercial Commercial department chart

Chief Commercial Officer

Health & Beauty

Toys, Kids, Babies

Groceries

Marketplace

Vendor performance manegement

ns i ncr easi

ng the op por tun ity for cu stom

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•

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•

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•

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•

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ue with out much co stin g Partnerships

•

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s up

on com pet ito rs

Pricing

•

con nec

t d epa rtm ent

s a

nd mak

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MP/Retail operations

•

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•

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Profit Contribution

•

mon thl

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•

Tra

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V e ver yda y

NMV

•

im pro

ve pay men

t te rm

•

man age ca

sh fow s

Working Capital

Roles and responsibilities

Products & Operations Products & Op Department chart

Chief Operating Officer

Supply Chain Management

Sourcing

Content & production

vendor operations: PSC*, OVPM*

Strategy and Planning

performance management

cost improvement

operational forecasting and planning

projects & program management

•

pro ces

s a

nd ans wer cus tom ers in qui rie

s vi

a c alls , e mai ls, cia

l m edi

a c han nel s

•

Ord

er v eri fica tio

ns (ad dre

ss pa ym ent ch eck)

•

BPO (e xte rna

l c all cen ter pa rtn er) , p erf orm anc

e m ana gem ent

Customer service

•

crea

te n ew co nte

nt ( new rel ease

d p rod uct

s o

n th

e w ebsi te, im age

s, te

xt, v ide os, ret ouch ing an

d d ata up loa ds)

•

pro cure men

t &

re ple nish men

t fo

r re tai

l a

nd F

BL i tem

s to

be in boun ded at reh ouse

•

man age mer chan

ts r ela tio nsh ip:

ful fillm ent an

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l p erf anc

e m ana gem ent (m ark etp lac

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ms are not inbo und

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t o

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th Han ian

d H CM

C w are hous es:

m ake sur

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e in bun ded , la bel led , s tor

ed cor rec tly

•

pic king , p acki ng, ha ndo ver to liv ery pa rtn ers fo

r fa set de liv ery to tom ers

•

exe cut

e th

e re tur

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•

man age th

e d eliv ery pa rtn ers (e xte rna

l 3 PLs as w ell

as int ern

al L EX )

Logistics

• ope rat iona

l fo rec ast ing and pl anni

ng to ens ure th

at b usi ness ca pac ity ping w gr ow

th

in ord eri ngs, (tr ans por ting eq uip ment , w are hou

se

ce,

etc )

• ove ral

l o per ati

l p erfo rm anc

e m ana gem ent (l ead ti

me, cos

t p

er o rde

r b enc hm ark ing and im pro vem ent pr oje ct, et c.)

• co- wor king w C

S de pt., ana lys cu sto mer fe edb ack and im pro

ve tom

er s ati sfa cti

Strategy & Planning

Roles and responsibilities:

* BPO: Business Process Outsourcing

* PSC: Partner Support Center

Chief Financial officer (CFO)

“Customer experience is the sum-totality of how customers engage with your company and brand, not just

in a snashot in time, but throughout the entire cycle of being a customer”

(Hardvard Business Review)

CX activities

• Workshop for new employees, different teams,

*NPS: Net Promoter Score, the percentage of promoters minus the percentage of detractors

Finance Finance department chart

Roles and responsibilities

1.High levels of Finance dept responsibility (60% to 90%): Covers the core process type activities – accounting, transaction progressing, financial information, tax, cash management

2.Medium levels of finance dept responsibility (40% to 59%): Covers general management and control, strategy and risk management, i.e business partnering of CFO

3.Lower levels of finance dept responsibility (less 39%): outsourcing and shared services where finance dept add vaue to business overall, i.e investment appraisal, dept financing

Company performance

Lazada in numbers

1 Platform: > 1 USD billion of annual GMV

* Gross merchandise volume or GMV is a term used in online retailing to indicate a total sales dollar value for merchandise sold through a particular marketplace over a certain time frame

2 Marketshare

Over 36% of Vietnam Online E-Commerce market (2015)

3 Logistics (Lazada’s group)

Converging mega trends

• Large population base: 93.5 million, Vietnam population 2016

• Growth in young population: over 34% in SEA countries

*Young population is defined as between 15-34

*SEA: Indonesia, Malaysia, Thailand, Phillipines and Vietnam

• Growth in South East Asia e-Commerce Market

At the end of 2017, it is suggested that growth rate in SEAsia e-Commmerce market of Lazada group will be 2.5 times as much as in 2014

III Internship activities & the functional department

Internship activities

The intern position requires specialist knowledge that characterized by not only the E-Commerce based business but also the qualities of Health & Beauty market sector Throughout the internship, thelevel of accountabilities increased accordingly with the managers’ confidence in my observed skills, knowledge, and working attitude

• Filling data for creating SKU (Stock-Keeping Unit) A stock keeping unit (SKU) is a product and service identification code for a store or product, often portrayed as a machine-readable bar code that helps track the item for inventory Every department works separately on an SKU depend on the type

of information they need That is why all the data must be precise and consistant from the beginning Otherwise, the coordination between functional departments shall be corrupted, leading to

malfunction and low performance of that product A commercial intern also helps boost visibility of these SKUs in ranks that approved by the Line Manager, export lists of SKUs or specific information stored in systems required by KAMs in the shortest amount of time

• Upgrade product contents and visuality This activity affects directly to the performance and

competitiveness of a product Such interesting job requires specific skills varied from content writing,photoshop, some sense of aesthetic and understanding of the products The content should be

fascinating, but not to be exaggerated There are cases that customers received wrong products or ones different from the description, which hinder a bad shopping experience There hardly can be an absolute control over this issue The 1st reason is, most of the information are provided by the

suppliers, who sometimes gloss over the defects or overstate their products The 2nd reason is that all products are packed then shipped by other functional staffs The best way to diminish unexpected consequences were to compare various sources of information, work closely with suppliers, and respond to Customer Relationship Department instantly when defects shown up

• Always keep up with warehouse activities All types of stock must be fulfilled, packed and delivered byLazada Furthermore, Stocks inbounded must meet the standard in terms: patterns and description on real products must match what shown on website, packages must be whole and undamaged My role was to revise on time all the errors or mismatch between what stored in system with the actual

inventories That would help stock buyers from Commercial deppartment keep pace with warehouse Quality Control (QC) process

• Following up deadlines of activities that are aligned closely with business partners & finish all the delegated tasks on time to make sure campaigns would be executed on schedule This is the hardest and yet the most interesting activity As for category Health & Beauty, products from big brands such

as Unilever, Laneige, L’Oreal Paris, Shiseido, etc shall be promoted coordinately with marketing campaigns from the other parties In the other hand, those brands will put aside mechanics

exclusively for Lazada to run specific campaigns In this case, as an assistant of the team, my job was

to follow up legal documents and other paper works, push both internal staffs and the brand partners

to progress, then report to managers daily

Functions and activities of Health & Beauty team

Health & Beauty is a category belonging to Commercial department, line FMCG, along with categoryGroceries and Toys, Kid & Baby HB team manages every aspect of Health & Beauty products The