Alibaba eyes $100 billion e-commerce sales volume in Southeast Asia

Chinese e-commerce giant Alibaba is targeting a five-fold increase in its yearly sales volume in Southeast Asian through its regional unit Lazada to $100 billion in the long run, the company’s CEO Daniel Zhang said at the firm’s annual Investor Day held on December 17 as a webcast.

The plan to quintuple Lazada’s sales volume – defined as total gross merchandise volume from the total amount of sales transacted on its platform — comes as the company is looking overseas for sources of growth amid increased competition and a slowing economy in the Chinese market, as well as stronger regulatory curbs.

Alibaba expects Lazada to grow customer numbers to more than 300 million users, Zhang said, without giving a specific time frame. Lazada’s gross merchandise volume for the last twelve months from September 2021 reached $21 billion, with 159 million monthly active users.

“Tremendous potential” in Southeast Asia’s e-commerce market

“In Southeast Asia, e-commerce penetration is only 11 per cent, and Lazada’s annual consumers have reached only 34 per cent of regional Internet users,” Zhang said, adding that there was “tremendous potential in both the overall market size and our penetration.”

Lazada, which was acquired by Alibaba in 2016, is the Chinese corporation’s main e-commerce business in the booming Southeast Asian market. Its importance has grown since Beijing launched a sprawling effort to curb the influence of Internet giants, prompting the likes of Alibaba and Tencent to ramp up their international businesses.

Lazada vs. Shopee

Lazada’s main rival in Southeast Asia is Tencent-backed Shoppe which operates in Southeast Asia and Taiwan and reported more than $56 billion worth of transactions over the four quarters to the end of September 2021.

Lazada, Shopee and fellow internet giants like Grab and Goto are riding a boom wave in Southeast Asian online commerce, which Alibaba says is growing about 27 per cent annually on average. Overall, Southeast Asia’s Internet economy is set to double to $363 billion by 2025, research from Google, Temasek and Bain & Co. shows.



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Chinese e-commerce giant Alibaba is targeting a five-fold increase in its yearly sales volume in Southeast Asian through its regional unit Lazada to $100 billion in the long run, the company’s CEO Daniel Zhang said at the firm’s annual Investor Day held on December 17 as a webcast. The plan to quintuple Lazada’s sales volume – defined as total gross merchandise volume from the total amount of sales transacted on its platform — comes as the company is looking overseas for sources of growth amid increased competition and a slowing economy in the Chinese market, as well as stronger regulatory...

Chinese e-commerce giant Alibaba is targeting a five-fold increase in its yearly sales volume in Southeast Asian through its regional unit Lazada to $100 billion in the long run, the company’s CEO Daniel Zhang said at the firm’s annual Investor Day held on December 17 as a webcast.

The plan to quintuple Lazada’s sales volume – defined as total gross merchandise volume from the total amount of sales transacted on its platform — comes as the company is looking overseas for sources of growth amid increased competition and a slowing economy in the Chinese market, as well as stronger regulatory curbs.

Alibaba expects Lazada to grow customer numbers to more than 300 million users, Zhang said, without giving a specific time frame. Lazada’s gross merchandise volume for the last twelve months from September 2021 reached $21 billion, with 159 million monthly active users.

“Tremendous potential” in Southeast Asia’s e-commerce market

“In Southeast Asia, e-commerce penetration is only 11 per cent, and Lazada’s annual consumers have reached only 34 per cent of regional Internet users,” Zhang said, adding that there was “tremendous potential in both the overall market size and our penetration.”

Lazada, which was acquired by Alibaba in 2016, is the Chinese corporation’s main e-commerce business in the booming Southeast Asian market. Its importance has grown since Beijing launched a sprawling effort to curb the influence of Internet giants, prompting the likes of Alibaba and Tencent to ramp up their international businesses.

Lazada vs. Shopee

Lazada’s main rival in Southeast Asia is Tencent-backed Shoppe which operates in Southeast Asia and Taiwan and reported more than $56 billion worth of transactions over the four quarters to the end of September 2021.

Lazada, Shopee and fellow internet giants like Grab and Goto are riding a boom wave in Southeast Asian online commerce, which Alibaba says is growing about 27 per cent annually on average. Overall, Southeast Asia’s Internet economy is set to double to $363 billion by 2025, research from Google, Temasek and Bain & Co. shows.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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