Alibaba CEO Zhang Yong stated at the company’s annual investor day on December 17 that, in the long run, Chinese e-commerce giant Alibaba’s goal is to increase its annual sales in Southeast Asia through its regional arm, Lazada. Five times, reaching 100 billion U.S. dollars. As a webcast. Plans to increase Lazada’s sales (defined as the total amount of goods in total sales traded on its platform) by five times, at a time when the company is looking for sources of growth overseas amid intensified competition in the Chinese market and economic slowdown As a stricter regulation…
Alibaba CEO Zhang Yong stated at the company’s annual investor day on December 17 that, in the long run, Chinese e-commerce giant Alibaba’s goal is to increase its annual sales in Southeast Asia through its regional arm, Lazada. Five times, reaching 100 billion U.S. dollars. As a webcast.
Plans to increase Lazada’s sales (defined as the total amount of goods in total sales traded on its platform) by five times, at a time when the company is looking for sources of growth overseas amid intensified competition in the Chinese market and economic slowdown As a stronger regulatory restriction.
Zhang said that Alibaba expects Lazada’s number of customers will increase to more than 300 million, but did not give a specific time frame. Starting from September 2021, Lazada’s total merchandise in the past 12 months has reached 21 billion U.S. dollars and has 159 million monthly active users.
Southeast Asian e-commerce market “huge potential”
“In Southeast Asia, the e-commerce penetration rate is only 11%, while Lazada’s annual consumers only reach 34% of regional Internet users,” Zhang said, adding that “the overall market size and our penetration rate have huge potential.”
Lazada was acquired by Alibaba in 2016 and is the main e-commerce business of Chinese companies in the booming Southeast Asian market. Since Beijing vigorously curbed the influence of Internet giants and prompted companies such as Alibaba and Tencent to strengthen their international operations, its importance has continued to increase.
Lazada and Shopee
Lazada’s main competitor in Southeast Asia is Shoppe, which is backed by Tencent. The company has operations in Southeast Asia and Taiwan. In the four quarters as of the end of September 2021, the transaction volume exceeded 56 billion U.S. dollars.
Lazada, Shopee, and other Internet giants such as Grab and Goto are riding the boom in online commerce in Southeast Asia, and Alibaba says it is growing at an average annual rate of about 27%.Overall, the Internet economy in Southeast Asia is Set to double Research by Google, Temasek and Bain & Company shows that it will reach US$363 billion by 2025.
