Lazada: the leader in Southeast Asia’s e-commerce market
Lazada was established in March 2012 and is headquartered in Singapore. It is a cross-border e-commerce platform. Lazada has risen rapidly in just a few years, becoming the largest cross-border e-commerce platform in Southeast Asia, and is known as the “Amazon of Southeast Asia”. Lazada covers Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam and other countries and regions, serving nearly 600 million consumers. In addition, Lazada also has offices in South Korea, the United Kingdom and Russia.
Product types and market positioning
The Lazada platform brings together a rich and diverse selection of products, covering multiple categories such as electronic products, fashion apparel, home furnishings, beauty and skin care, maternal and infant products, sports and fitness, etc. No matter which field consumers are interested in, they can find products that meet their needs on Lazada. The platform not only provides products from local brands, but also introduces international brands from China, South Korea, the United States and Europe.
Cooperation with Alibaba
Lazada is regarded as the “vanguard” for domestic Internet giant Alibaba Group to develop the Southeast Asian market. Alibaba acquired 51% of Lazada’s shares in 2016; it injected another US$1 billion into Lazada in 2017, increasing its shareholding to approximately 83%; and in early 2018, it invested an additional US$2 billion in Lazada. At this point, Alibaba’s holdings in Lazada have been reduced. The shareholding ratio exceeds 90%. Alibaba has also provided advanced technology and management experience for the development of Lazada, and has worked together to improve logistics networks and electronic payments in Southeast Asia to establish long-term competitive advantages.
Mobile shopping experience
Lazada attaches great importance to the convenience of mobile shopping and actively develops mobile applications and mobile websites. This way, consumers can access the Lazada platform and make purchases anytime, anywhere using their mobile phones or tablets. This mobile shopping method is very popular in Southeast Asia, and Lazada’s mobile app provides consumers with a friendly and convenient shopping experience.
Sales and Commission Mechanism
Merchants selling products on the Lazada platform do not need to pay product display fees, but they need to pay a certain percentage of commissions and payment fees to the platform. Among them, the payment fee ratio for sites in Malaysia, Indonesia, Thailand, Singapore, and the Philippines is 2%, and that in Vietnam is 3.84%. Regarding the commission ratio, Vietnam sites and other sites are also different.
Promotions and offers
In order to attract more consumers’ attention and participation, Lazada often holds various promotions and special offers. These include big promotions, discounts, coupons and flash sales, etc., which have attracted widespread attention on the platform. These promotions provide consumers with more attractive prices and offers, making shopping more fun and affordable.
Seller support and development opportunities
The success of the Lazada platform is inseparable from its huge user base and market share. It has a broad user base in Southeast Asia and continues to attract new users. This powerful consumer group provides huge business opportunities for sellers, while also providing consumers with more choices and competitive advantages. Lazada also focuses on providing support and development opportunities for sellers, providing sales data analysis, advertising promotion services, logistics support and other tools to help sellers improve sales performance and expand market share.
With the continuous development of e-commerce, Lazada’s influence and position in Southeast Asia is expected to be further consolidated and developed.