Chinese online marketplace Alibaba has announced that it is investing approximately $1 billion to increase its majority stake in the Lazada group, from 51% to 83%.
Lazada, an online shopping platform in South-East Asia, will continue to operate under the same brand. Alibaba says that its investment in Lazada has given the company access to consumers in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
The two companies say that they will develop a “vibrant e-commerce gateway”, giving brands and sellers access to 560 million consumers in the region.
Growth Opportunities
“As a market leader, Lazada has demonstrated its ability to execute and further lead the region in products and services with the best consumer experience in South-East Asia, while growing a strong ecosystem that supports small businesses going online,” said Daniel Zhang, CEO of Alibaba Group.
“The e-commerce markets in the region are still relatively untapped, and we see a very positive upward trajectory ahead of us. We will continue to put our resources to work in South-East Asia through Lazada to capture these growth opportunities.”
During the past 12 months, both Lazada and Alibaba have worked on a number of initiatives to advance e-commerce in South-East Asia, including the establishment of a new fulfilment centre in Malaysia.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
