Lazada Will Expand Its Business Empire
2019-05-13 09:19 Monday
On March 7, Alibaba Group's Southeast Asian e-commerce platform Lazada held a cross-border e-commerce conference and announced a series of strategic upgrading measures for cross-border businesses.
Lazada, founded in 2012, is the largest online shopping and sales platform in Southeast Asia, with operations in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
Lazada's cross-border sales have quadrupled in the past three years. To maintain this positive trend, the platform is now promoting its cross-border business and expanding its influence on consumers for international brands and merchants.
To boost sales in 2019, Lazada now aims to identify and nurture the top 300 brands among cross-border sellers in every country it operates. This will allow selected brands to grow their businesses and enjoy benefits such as greater visibility of their products as users search and browse the site.
"We want to be a bridge between quality merchants and 560 million consumers in Southeast Asia," Lazada Group's Co-President Jing Yin said at the conference.
An important initiative announced at the conference was the revamp of Global Collection. This is a dedicated channel that showcases Lazada's cross-border traders from around the world by category. Global Collection 2.0 utilizes algorithm-based search capabilities to filter a wide range of cross-border assortment to focus on sellers who offer popular and high-quality products so that customers can easily find them.
From April, prospective cross-border sellers will no longer be invited to sell on Lazada's platform, but will be able to submit applications in a self-service system. Once the review is complete, they can become Lazada's businessmen.
Southeast Asia is one of the last major unclaimed markets in the world. The region has the third largest population in the world after China and India. The market has broad prospects and is expected to reach $102 billion in 2025, 20 times the size of 2015.
It is not surprising, then, that Lazada is not alone in showing interest in Southeast Asia. Its rival, Tencent's Shopee was the most downloaded shopping app in Southeast Asia in 2018, attracting more followers than Lazada in the fourth quarter of 2018.
But Jing Yin, undeterred by the competition, explained that he saw no need to focus on it. "Lazada will continue to focus on authorization and customer engagement and ensure quality of service."