The competition of E-commerce in Southeast Asia was heating up since Amazon (a global shopping online which located in Seattle, Washington D.C, USA) joining up. Alibaba group invested the funds as much $2 billion to control an expansion stake on Lazada which is covering the operation in Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, according to Market Research Southeast Asia.
Aimone Ripa (co-founder of Lazada) says that project was big enough because it’s covered all business aspect, including; logistics, packaging design/structure and market management. He said that this plan was concrete validate to build an efficiency for Lazada’s business plan. The other day Lazada cooperated with Taobao in Singapore and Malaysia because they knew if Singapore and Malaysia had a huge reception as well The Taobao (Alibaba merchant) brand is a well-known brand. The team wanted to roll out the target market into Indonesia.
However, the increasing testament value which created by Lazada it is not regardless of Alibaba main points in shopping online. They are embracing the Alibaba philosophy of enabling the ecosystem. Actually, Alibaba has a good plan unlike the others doing more time on ineffective ways to increase market sales. According to Market Research Southeast Asia, Lazada had to face the reality in every step as like the infrastructure on data centers, language variation of goods (in period time) the customs and regulation. They still on maintaining the problem.
Lazada team it is at work to bring the basic structure of Alibaba over to Southeast Asia and confine it. The truth, there are still exist of counterfeit goods from Taobao were not detected properly (the fake goods still on sale) while it is contrary to the Lazada’s market concepts. We had a solution to decrease the fake goods, it is leveraging all the data which is not available only on market trends, also detect the certain types of merchant behavior to keep a website clean from the fake/illegal goods.
In business competition, Lazada had a competitor from International players but they are very limited in their focus. It is very different with a chance of Lazada, they had fixed customer from across Southeast Asia (except; Singapore) also they are the only one player that expand their markets into 6 markets of Southeast Asia and on the top five as the leader of Online Shopping Southeast Asia market.
On another side, the rival amazon.com wanted to expand their markets into Southeast Asia, also they are directly dealing with Alibaba as the host.
Lazada is full of confidence if later against the Amazon as the largest online shopping market holders in Europe and America, it is because Lazada is an experienced player (in Southeast Asia) who has advantages in cross-border supply chain solutions called Lazada Global Shipping. The service allowed customers to earn “cash on delivery service” even though in the future Aimone Ripa wanted to change it into “third party online” payment solution, because it’s more convenience between refunds and redeeming points, also the customer unworried about losing money, because the cancelled order will be refunded through the customer’s account as like Alipay system from Alibaba.com.