Chinese e-commerce giant Alibaba said Monday it would appoint one of its founders as head of Lazada and inject another $2 billion into Southeast Asia's leading online shopping firm, boosting its regional expansion. Lazada founder Max Bittner, who has served as CEO since 2012, will take on the role of senior advisor to the Alibaba Group, to assist in the transition and future worldwide growth strategy.
Alibaba has previously invested $2 billion in the Singapore-based firm, bringing its total investment to $4 billion.
Peng is one of the 18 members of the original team that started Alibaba together with executive chairman Jack Ma Yun. Alibaba's first investment helped save Lazada from the brink of bankruptcy, and the partnership between the two has been extremely beneficial for Lazada's growth in the last few years.
According to commentators, Southeast Asia is an important aspect of Alibaba's global expansion and a thriving region that Chinese archival JD.com Inc is also targeting.
The company is aiming to duplicate its domestic e-commerce success in Southeast Asia, a region with many similar characteristics to a pre-Alibaba China - and its efforts are paying off.
Marketing has reached out to Alibaba for more details.
Amazon entered the market for the first time a year ago, with the launch of its express, same-day delivery service, Prime Now in Singapore.
The e-commerce market in Southeast Asia holds a lot of potential but is also highly fragmented. "Lazada is well-positioned for the next phase of development of internet-enabled commerce in this region, and we are excited about the incredible opportunities for supercharged growth".
"If India was the first key battleground between USA and Chinese vertical-leaders, then SoutheastAsia is surely the second", said Lloyd. Last April Ant Financial acquired Lazada payment affiliate helloPay Group, re-branding it under its own Alipay brand. The online retailer conducts operations in Indonesia, Malaysia, Singapore, Thailand, the Philippines, and Vietnam.