Alibaba Planning to Grow Southeast Asia E-Commerce Lazada to 100 Billion
Alibaba plans to grow its Southeast Asia E-Commerce Company Lazada to 100 Billion dollars. He had done the same earlier.
Now, A huge part of Lazada is being governed by Alibaba in 2016 it took a controlling stake in Lazada and invested $2 Billion in 2018 with the purpose to expand the business.
Alibaba this week revealed its prosperous vision to grow the Southeast Asian e-commerce business to $100 billion (760140 Crore Rupees) in the field of transacted sales and also taken a pledge to reach the neutrality of the carbon by the 20930.
On the presentation day, the top executive, the CEO of the company revealed the aim of the company in the future business. The company revealed the information with the help of presentation slides on its site for its annual investor day.
The company plans to increase Lazada’s total gross merchandise volume that can be defined as the total amount of sales transacted on its platform. Overseas by the company due to slowing economy in the Chinese market and increasing competition.
Highlighted points
- The ambitious vision of the company Lazada was revealed by its largest stakeholder Alibaba.
- The company revealed its Gross Merchandise Volume of the last 12 months is $21 billion.
- Alibaba takes a serious concern about the carbon emission by the company and to reduce it, it pledged to keep it neutral by 2030.
- Alibaba also aimed to have 300 million consumers which is clearly shown in the presentation slide.
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The new incoming chief financial officer of Alibaba Toby Xu narrated in the presentation that the Chinese-based business segment has faced the challenges of the slowing macro-environment and a high level of competition. He also
Said, “This has resulted in slower GMV and the revenue growth in the most recent quarter”. Including this, he also mentioned that
“But we also see opportunities to tap into new addressable markets to grow new users that will position us well for the long term.
Currently the gross merchandise volume of Lazada for the last 12 months from September 2021 is $21 Billion which is 1, 59,600 crore Rupees with 159 million monthly users.
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Daniel Zhang, the CEO of Alibaba said in a separate presentation Friday that the company sees a “Huge potential in the international market”.
Adding more he said “In Southeast Asia e-commerce presentation is only 11%, and Lazada’s annual consumers have reached only 34 % of regional internet users” Zhang also said-
“There’s a tremendous potential in both the overall market size and our presentation”.
The company has faced earlier huge fierce competition and regulatory scrutiny last year. The Chinese regulatory body also increased its oversight in the technology sector due to an increase in the engagement of the tech industries in the anti-competitive and monopolistic behavior. The company was also fined a record $2.8 billion earlier which is nearly 21,300 crore in Indian Rupees and this year the authority concluded that the company had violated the antitrust rules.
The company has also told that it is planning to reduce the emission of carbon and control the percentage by 2030. Zhang mentioned “energy-saving and efficiency- improving technologies”
And as the Chinese government planned to be neutral in the field of the emission of carbon it make strict rules for all the technology-based industries.
