Alibaba Group invested US$2 billion in Lazada, an e-commerce service provider in Southeast Asia, and appointed a senior executive with extensive experience in e-commerce to operate the region. Lazada has a first-mover advantage in the Southeast Asian market, but faces strong competitors. Amazon is also very ambitious for the Southeast Asian market.
A spokesperson for Alibaba Group stated that in the latest round of undisclosed fundraising of Lazada, Alibaba has invested US$2 billion. After the fund-raising is completed, Alibaba’s shareholding will reach 83%. In the past two years, Alibaba has already The investment in Lazada exceeded US$2 billion. In order to promote the development of Lazada’s e-commerce business, Alibaba appointed the co-founder and CEO of Ant Financial, Peng Lei, as CEO of Lazada. Max Bittner, founder of the latter, will serve as an advisor to Alibaba.
The Alibaba Group stated that the investment in Lazada represents Alibaba’s confidence in the company’s business prospects and the potential of the Southeast Asian market. The Southeast Asian market is an important part of Alibaba’s global business strategy.
With the expansion of Alibaba’s e-commerce and online financial services in Southeast Asia, the company is also facing competition from Amazon, the world’s largest e-commerce service provider, and challenges from its Chinese rival Jingdong. Ant Financial CEO Peng Lei said that Southeast Asia has a large number of young users, the use of mobile devices is very high, but the region’s online retail consumption accounted for only 3% of total spending, Alibaba is confident to reach the online retail sales in the Southeast Asian market The goal of growing 100%. Currently, Alibaba’s e-commerce services have expanded to more than 200 countries around the world. More than 500 million people use the company’s shopping platform every month. The huge user resources can give Lazada better support.
The Southeast Asian market has 640 million consumers. With the growing middle class and the increasing popularity of smart phones, the Southeast Asian market has become the focus of competition among major technology companies. According to a report from consulting firm Frost & Sullivan, Southeast Asia Electronics The size of the business market is $20.5 billion in 2017 and will grow to $65.5 billion in 2021.
Lazada went live in 2012 and currently operates in Malaysia, the Philippines, Singapore, Thailand, Vietnam and Indonesia.
source : www.reuters.com