Lazada establishes a long-term business plan
Ecommerce operator hopes to break even or turn a profit within three years
Mr. Dong said Lazada aims to maintain or increase its market share in the e-commerce segment.
The Lazada ecommerce operator has committed to increase the experience of buyers and sellers on its platform and strengthen its ecosystem to ensure the long term sustainability of the company, while aiming to achieve balance or to make a profit over the next three years.
James Dong, general manager of Lazada Thailand and Vietnam, said Lazada has seen strong growth over the past year and a half, driven by the pandemic.
“We experienced high double-digit growth, with triple-digit growth for some quarters,” said Dong, attributing the growth to the shift in consumer demand towards online shopping and the impact lockdown induced by the pandemic.
During the pandemic, Lazada faced higher logistics costs and had to offer vouchers and free shipping to attract new customers to the platform.
The main mission is to help small and medium-sized businesses run their businesses during this difficult time and enable people to have better access to consumer goods online, he said.
“During the pandemic, sellers and brands have turned to us to help them have this alternative channel to generate income, so we make sure we can provide it even at a higher cost,” said Mr. Dong. .
Despite having its own fleet of vehicles, Lazada also works with third parties as this could help create an ecosystem when working with others.
On the logistics side, Lazada technology is leveraging the logistics of China’s Alibaba e-commerce powerhouse with most advanced warehouse Lazada Asean, Dong said. With digital technology in hand, Lazada can make shipments across borders in a shorter time.
Lazada has set a target to ensure cross-border delivery within three days, Dong said. So far, shipments from China to Thailand can be done within three days by Lazada.
An aerial view of the newest and largest warehouse in the Eastern Lazada Economic Corridor.
Mr. Dong said Lazada is seeking to maintain or increase its market share in the e-commerce segment.
“We are trying to provide a slightly better experience by providing better logistics with a more reliable product assortment and we will continually launch more technologies involving artificial intelligence. [AI] and virtual reality [VR] to improve the customer experience, “Mr. Dong said.
“For our business, we always focus on long-term and sustainable achievement. We will try many different initiatives,” he said. “We will continue to invest in things that we can expand.”
Lazada still maintains a leading market position in the country, said Dong.
“Providing the best experience for buyers and sellers is actually the most relevant strategy for us,” he said.
The company is also striving to achieve profitability or even profitability, Dong said. “Hopefully it could be soon enough, maybe 10-12 years of Lazada’s operation. Lazada is now in his ninth year of providing his services.
However, he said profitability is not the biggest pressure on Lazada as it is not a state-owned company and still receives funding from Alibaba.
Lazada shopee and dominate the market for online shopping in Thailand.
“As long as there are two great players, there will be stiff competition,” said Dong. “But the good thing is, we are pushing each other to get better and provide better service to sellers and consumers. “
According to him, online retail accounts for more than 30% of the total Chinese retail market, while this share is less than 10% in Thailand. “There is still a huge room for growth,” said Mr. Dong.
DIVERSITY AT WORK
Mr. Dong was appointed General Manager of Lazada Thailand and Vietnam in June 2021.
Mr Dong said that during the pandemic, Lazada slightly reduced the number of expatriate workers while increasing diversity, with more women than men in the company at the moment.
At Lazada’s head office in Bangkok, more than 60% of its employees are women and the team is “quite international”, he said.
For the company’s overall Lazada over 60 nationalities. “This diversity brings a lot of good thoughts to our business,” he said.
A myriad of tech and internet companies are now exploring how to create a virtual environment where people can interact with each other online or in the metaverse, and Lazada is one of them.
Mr Dong said the company pays crucial attention to AI and virtual reality technology, representing one of the three key components of the metaverse. The other two are blockchain and people’s experiences with their personalized preferences.
“We are probably one of the first drivers in this area,” he said.