Asia

Lazada is Leader of E-Commerce in South-East Asia

With over 50 million buyers, Lazada, a Singapore e-commerce company founded by the German Rocket Internet in 2011 and controlled by the Alibaba group since 2016, can now be defined as the e-commerce leader in Southeast Asia

South-East Asia has an e-commerce leader. In fact, Lazada, which operates in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, with over 50 million buyers can claim the role of e-commerce leader in Southeast Asia.

To clarify the numbers of success is Pierre Poignant, CEO of the Lazada Group, who said that the company manages the best e-commerce platform in Southeast Asia with over 50 million active buyers every year.

In June 2017 Alibaba Group increased its investment in Lazada by increasing its stake from 51% to 83%

Poignant said in an interview: “We are growing at triple digits for the past three quarters, which has really sort of defined our position as number one. We’re very happy about the progress of where we are.”

In particular, the comment of the managing director comes as a denial of some voices that saw the rival platform of LazadaShopee, managed by the Internet Sea company, as the most popular e-commerce platform in the region.

However, a clarification is needed. According to the online shopping aggregator iPrice, in fact, Shopee has the highest number of monthly active users, downloads and site visits in the region starting from the second quarter of this year. While, Lazada, guided in terms of monthly active users in four of the six major e-commerce markets in the region: Malaysia, Singapore, Thailand and the Philippines.

In March 2018, Alibaba invests another $ 2 billion in the company and replaces Lazada’s CEO with Peng Lei

The Southeast Asian market is increasingly sought after. In fact, the region can count on an increasingly rich population of over 600 million people. Furthermore, it is a relatively new region for online shopping, so it has great potential for growth.

To make Lazada grow, Alibaba replaced Max Bittner, then CEO of Lazada, with Lucy Peng Lei, a co-founder of Alibaba who previously served as executive chairman of Ant Financial Services.

Alibaba also made changes to the business model, launching LazMall which offered branded products and “premium services”. In addition, the platform has become more “asset-light” as Alibaba’s Taobao Marketplace and Tmall e-commerce platforms, serving primarily as a transaction platform for third-party sellers and buyers.

Categories: Asia, B2C, Business, World

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