After buying a controlling stake in Lazada in April, Chinese ecommerce giant Alibaba shares its Big Data & Analytics platform with Lazada, reported the Bangkok Post. Alibaba hopes the data sharing will provide online merchants with relevant consumer purchasing data and allow Chinese retailers and manufacturers to sell their products through Lazada’s site. This will open opportunities for Chinese retailers to tap into the largely untapped Southeast Asian demographic of 500 million people.
Thailand Ecommerce Stats at a Glance
In light of this announcement, Alessandro Piscini, Chief Executive Officer of Lazada Thailand made some comments on the current nascent landscape,
- The average Thai person spends 7.4 hours per day on different media platforms, with mobile phones accounting for 3.1 hours of that total. This demonstrates that online channels are increasingly playing a more important role among Thai users
By 2019, of every $10 dollars (THB 350.50) retail purchase made globally, at least one dollar would go online (Neilsen)
- Policymakers and consumer protection authorities must closely monitor ecommerce companies to make sure they deliver on what they promise to consumers
- 69% of Thai smartphone users do research online before making a purchasing decision
- Thailand’s online retail market will continue to grow thanks to the rapid adoption of 4G smartphones and increasing numbers of mobile internet users
- Despite Ensogo’s recent closures, Lazada isn’t worried because they operate through a different model and have financial support from Alibaba
There have been many speculations in regards to Lazada’s new road map after the large acquisition. An anonymous source has confirmed the two companies are in the midst of integrating new policies and HR initiatives to encourage outstanding employees but translating legal documents from Chinese into English first has slowed down the process. Piscini has stated that the company has no plans to rebrand.
A version of this appeared in Bangkok Post on July 5. Read the full article here.