L

Lazada

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Lazada Group Market Research Report



Company Profile: Lazada



Overview



Lazada Group is a prominent e-commerce company headquartered in Bras Basah, Singapore. Founded on March 27, 2012, by Maximilian Bittner, Lazada is one of the largest e-commerce operators in Southeast Asia, operating in Indonesia, Malaysia, Philippines, Thailand, Vietnam, excluding Myanmar, Laos, Cambodia, Brunei, and East Timor. The company is owned by Alibaba Group and includes subsidiaries such as Lazada Vietnam and Lazada Singapore Pte. Ltd.

Key Information



  • Founded: March 27, 2012

  • Founder: Maximilian Bittner

  • Headquarters: Bras Basah, Singapore

  • Industry: E-commerce (Online Shopping)

  • Owner: Alibaba Group


  • Presence: Indonesia, Malaysia, Philippines, Thailand, Vietnam


Financial and Operational Highlights



Lazada has successfully secured considerable investments and experienced significant growth since its inception. Key financial milestones include:

  • Alibaba Group acquiring a controlling stake in Lazada in April 2016 for $1 billion and increasing its stake to 83% with an additional $1 billion in 2017.


Key Financial Figures:

  • Annual Gross Merchandise Value (2016): $1.36 billion

  • Active Buyers (2019): 50 million

  • Third-Party Sellers (2014): Over 10,000

  • Net Revenues (2014): $154.3 million

  • Net Operating Losses (2014): $152.5 million


Leadership Team



  • Jiang Fan: Group Chairman

  • James Dong: Group CEO, appointed in June 2022

  • Lucy Peng: Executive Chairwoman

  • Frank Luo: CFO

  • Howard Wang: CTO

  • Brigitte Daubry: Chief Customer Care Officer

  • James Chang: Chief Business Officer


James Dong's leadership aims to drive Lazada’s growth across its core markets, enhance operational efficiencies, and expand market presence.

Recent Developments



Lazada restructured its operations in 2023, integrating into the Alibaba International Digital Commerce (AIDC) business unit, with financial injections from AIDC totaling up to $1.8 million in 2023 to enhance its competitive position.

Challenges and Controversies



  • Counterfeit Products: Ongoing issue despite a zero-tolerance policy. Lazada launched LazMall in 2018 to tackle this challenge by offering a platform for authentic brands.

  • Retrenchments: Lazada reduced its workforce by 25%-50% in 2023 and early 2024, evoking criticisms from its workers' union.


Strategic Initiatives



  • LazMall: Launched in September 2018 to promote authentic brand purchases.

  • LazEarth Campaign: Introduced in April 2022 to reduce plastic waste.

  • Credit Card Partnership: Collaborated with Citibank in October 2019 to launch a co-branded credit card.




Competitor Profile



Key Competitors



Shopee



  • Overview: Launched in 2015, Shopee is owned by Sea Group and leads the Southeast Asia and Taiwan markets. It offers a secure and enjoyable online shopping experience with strong payment and logistical support.

  • Global Rank: 1,679 worldwide, 22 in the Philippines

  • Traffic: 38.33M visits, bounce rate of 47.11%

  • Authority Score: 70

  • Headquarters: Singapore

  • Employees: 39,000

  • Market Expansion: Present in Malaysia, Thailand, Taiwan, Indonesia, Vietnam, and the Philippines

  • Specialties: E-commerce, logistics, technology, mobile commerce

  • Notable Achievements: Known for campaigns like 9.9 Super Shopping Day


Amazon



  • Overview: A global e-commerce and technology giant, Amazon offers a wide range of products and services including cloud computing (AWS), digital streaming, and artificial intelligence.

  • Global Rank: 14 worldwide, 5 in the United States

  • Traffic: 3.23B visits, bounce rate of 40.28%

  • Authority Score: 100

  • Revenue: US$2.75 billion (2023)

  • Employees: 1,525,000

  • Headquarters: Seattle, Washington, USA

  • Specialties: Online retail, advertising, cloud computing, electronic devices

  • Market Reach: Operates across North America and internationally


eBay



  • Overview: Founded in 1995, eBay is a global e-commerce marketplace facilitating transactions between millions of buyers and sellers.

  • Global Reach: Over 190 markets

  • User Base: 132 million active buyers

  • Live Listings: ~2.1 billion

  • Headquarters: San Jose, California, USA

  • Specialties: E-commerce, retail, online auctions, trading services


Etsy



  • Overview: Specializing in handmade and vintage items, Etsy connects unique sellers with buyers interested in craft and personalization.

  • Revenue: US$2.75 billion (2023)

  • User Base: 92 million buyers, 7 million sellers

  • Employees: 2,420 (2023)

  • Headquarters: Brooklyn, New York City, USA

  • Specialties: Handcrafted goods, vintage items, craft supplies

  • Market Position: Emphasizes sustainability and personal shopping experiences


Carousell



  • Overview: Founded in 2012, Carousell is a Singapore-based consumer-to-consumer and business-to-consumer marketplace.

  • Market Presence: Operations in Malaysia, Indonesia, the Philippines, Taiwan, Hong Kong, Macau, Australia, New Zealand, and Canada

  • Expansion: Known for strategic acquisitions and partnerships


Special Mentions



  • Orami: Focuses on women’s products, family, and children’s goods.

  • iPrice: Aggregates offers from various e-commerce platforms.

  • Elevenia: Indonesian e-commerce platform with a broad product range.

  • Filling Pieces: Competes in the premium designer footwear and fashion segment.


Industry Landscape



  • Market Dynamics: The Southeast Asian e-commerce landscape is highly competitive, with Shopee leading in traffic and market engagement.

  • Regional Dominance: Shopee and Lazada are key players, competing in sales campaigns, product offerings, and technological innovations.


Strategic Insights



  • Customer Experience: Enhancing payment, logistics, and user interface to match competitors.

  • Community Engagement: Initiating strategic community and user engagement campaigns to foster loyalty.

  • Technological Enhancements: Investing in AI and machine learning for personalized shopping experiences.