Alibaba’s Eyes Are Set to South East Asia Through Lazada
Alibaba has been a name synonymous to e-commerce in China. In fact it has been the most successful e-commerce platform in China, considering that it has the ability to sell more than any other e-commerce platforms in the world; it can also be considered a world class success story. Thing is though Alibaba is a China phenomenon and most of its sales are in China itself. As businesses go, growth has to be a consistent thing in a company and of course to Jack Ma, founder and CEO of Alibaba the need of expansion is always there. Alibaba’s domination in the e-commerce field in China is already proving that there is hardly much more space to grow in the China market itself and therefore they look to markets outside China; it is when Jack Ma looks to South East Asia.
The South East Asia market in the e-commerce field is currently one of the fastest growing one in not just Asia, but in the world. The exponential growth of online shopping in South East Asia of course lends its thanks to the ever increasing amount of e-commerce platforms in the region. Economically as well the rise of the middle income bracket of the demography contributed to the popularity of online shopping. Currently the king of e-commerce platform in South East Asia is Lazada owned by Rocket Internet.
Lazada can be viewed by many as the Alibaba of South East Asia, present in major countries like Malaysia, Indonesia, Philipines, Thailand, and Vietnam it is a one stop shop for various items to cater to a variety of segments including tech, fashion, health and many more.
Today saw Alibaba’s statement in buying newly issued equity by Lazada and plenty of shares from current shareholders totalling to about US$1 Billion (MYR3.89 Billion). This means that Alibaba is set to control and pretty much own the e-commerce platform taking over from Rocket Internet. Lazada pointed out that South East Asia is a mobile driven market with plenty of room for growth. CEO of Lazada Group, Max Bittner also says that this new funding from Alibaba would help them achieve their 560 million consumer target by improving on various services and experiences.
Source: Tech In Asia