Alibaba Group Holding's Lazada Courts Luxury Brands to Compete with Shopee and TikTok in Indonesia's E-Commerce Market
Alibaba Group Holding's Strategic Moves
Alibaba Group Holding's Lazada is courting top European fashion and design brands to fend off Asian rivals like Shopee and TikTok. This strategic initiative is essential as the company sets its sights on achieving a staggering US$100 billion in e-commerce volume by 2030.
Engagement in Milan with Italian Brands
Executives met this week in Milan with founders and managers of more than a hundred Italian brands interested in connecting with Southeast Asia through LazMall Luxury, a newly launched platform.
- Brands engaged include Armani, Dolce & Gabbana, Ferragamo, and Tod's.
- Executives are focused on increasing high-end demand across Southeast Asia.
Fighting for Market Share
This courtship is part of a broader campaign to fend off Sea’s Shopee, ByteDance’s TikTok, and PDD Holdings in a Southeast Asian e-commerce market projected to reach US$186 billion by 2025.
According to Jason Chen, chief business officer, "Lazada is ready to ramp up in this new phase of e-commerce development, prioritizing profitability and long-term gains."
Positioning Against Competition
The push to enhance their luxury segment aims to solidify Lazada’s brand positioning against fierce competitors.
- Lazada and AliExpress are crucial to Alibaba's international business strategy.
- High-end demand is pivotal for Alibaba's growth in Southeast Asia, especially with a struggling Chinese economy.
Control Over Pricing and Marketing
Unlike its rivals, Lazada can offer brands greater control over their pricing and marketing strategies. This flexibility is particularly appealing to luxury fashion houses. Chen emphasized that brands can manage their operations, pricing, and logistics through their online stores on the Lazada platform.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.