Confidence is all time high at Lazada, the eCommerce platform home to many retailers who are seeking to quickly tap into the burgeoning online shopper audience, with parent company Alibaba investing another US$2 billion into the business.
Pursuing to emulate the success of its own business model in China, Alibaba is set to position Lazada as the leading eCommerce platform in Southeast Asia, home to over half a billion people. Having since acquiring the company in 2016 for US$1 billion and adding another US$1 billion in 2017, the Chinese tech giant is strategising clinically to grow Lazada after seeing its potential. Lazada currently operates in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
The investment could be used to further subsidise good sold on the platform to gain more user base and increase spend, a move seen by many brick and mortar retailers as unfair but face the fact the brutal fact of how digital commerce works. SEA is quickly becoming an exciting region with a robust mobile activity and high penetration. With a young population who are naturally comfortable with digital use, are seen as potential adopters of online shopping which currently only stands at 3% of the regions retail sales.
Together with the commitment, Alibaba is making management changes at Lazada by placing one of its own as CEO. Lucy Peng, who currently serves as Lazada’s Chairman and is one of the companys 18 founders will assume the additional role of chief executive officer. Lazada founder Max Bittner, who had been its chief executive officer since 2012, will assume the role of senior advisor to Alibaba Group and assist in the transition and future international growth strategies.