On October 10th, Bloomberg reported that Lazada, a subsidiary of Alibaba Group, is partnering with top European fashion brands to achieve $100 billion in e-commerce volume by 2030. This move is part of Lazada’s strategy to accelerate growth and outpace competitors in the Asian market.
Established in 2012, Lazada has rapidly grown into a major e-commerce platform in Southeast Asia. Through its advanced technology, logistics network, and payment services, it has been actively expanding its business in six countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. According to the company, Lazada now has over 100 million active users annually. Since 2016, Lazada has served as Alibaba’s flagship e-commerce platform in Southeast Asia, backed by Alibaba’s cutting-edge technology. Alibaba continues to support Lazada’s competitive edge as a key growth engine for its global expansion strategy through innovation, technology, and data.
According to Bloomberg, Lazada executives met in Milan with the founders and managers of over 100 prestigious Italian brands, including Armani, Dolce & Gabbana, Ferragamo, and Tod’s, to discuss expanding into the Southeast Asian market. This initiative is seen as a critical move to counter strong competitors like Sea Ltd.’s Shopee, ByteDance Ltd.’s TikTok, and PDD Holdings Inc. The Southeast Asian online market is projected to grow to $186 billion by 2025, with fierce competition in key regions like Indonesia and Singapore, particularly between TikTok and Shopee.
In an interview with Bloomberg, Jason Chen, Chief Business Officer of Lazada, said, “Lazada is ready to ramp up as entering this new phase of e-commerce development, where profitability, commercialization and long-term gains are priorities for the business.” He also emphasized that expanding their luxury segment will further strengthen their brand positioning and contribute to greater success.
Lazada and AliExpress have become critical engines of Alibaba’s growth outside China, especially as the domestic economy slows. According to Bloomberg, Alibaba is focused on recovering from years of regulatory crackdowns in China and is accelerating its expansion in the Asian region under its new leadership. Sea Ltd. remains one of Lazada’s main rivals, having raised its retail sales outlook in August, signaling steady progress in the market.
Chen highlighted that Southeast Asia, along with India and the Middle East, is one of the world’s fastest-growing luxury markets, and as China faces economic challenges, the region’s growing demand becomes even more significant for Alibaba.
Chen also pointed out Lazada’s unique advantage over competitors: “Unlike rivals, Lazada can offer brands more control over pricing and marketing.” He noted that Alibaba’s Tmall Luxury Pavilion, established in 2017 and now home to over 200 brands, serves as a model for Lazada’s success.
“When a company decides to open its own online store on our platform, it manages all the operations, from pricing to logistics,” Chen added, stressing that this level of control is crucial for fashion houses, which value full oversight of the sales process.
Lazada is steadily building a strong foundation to strengthen partnerships with luxury brands and position itself competitively in the rapidly growing Southeast Asian market.