THE internet economy in Southeast Asia has been tipped to reach US$240 billion by 2025, and e-commerce operator Lazada is aiming to carve out a large slice of this.
As part of the Singapore-based company’s ambitions for the region, it expects to achieve revenue growth in the double digits in Thailand.
The operator plans to improve its engagement with sellers and customers via a new platform, Super – Solutions, to keep pace with the demands of the market.
Pierre Poignant, chief executive officer of Lazada Group, said Google-Temasek e-commerce SEA, in projecting that the region’s internet economy would reach US$240 billion, reported that the e-commerce market would make up around US$102 billion of the total, followed by online travel with US$78 billion, online media US$31 billion and ride hailing US$29 billion.
For e-commerce by 2025, the top markets would be Indonesia, worth US$53 billion, followed by Vietnam on US$15 billion and Thailand US$13 billion.
Poignant said Southeast Asia is a highly diverse region as well as being a global social hotspot, with social media being a way of life.
Around 60 per cent of Southeast Asia's Internet users purchase online and 33 per cent of online purchases go though social media or social commerce.
In Thailand, the internet reaches 82 per cent of the population. Around 51 per cent of online users in Thailand make purchases on social media.
“We have our seventh birthday celebration on March 27. Our goal was to create a one-stop shop for the region for both consumers and sellers or brands,” Poignant said. “We launched Lazada in Southeast Asia as the region is a very attractive opportunity.
“Temasek estimates the market growth will be 40 per cent year on year for the next five to seven years to reach US$102 billion. Most of these rosy stories were always followed by logistics, payments, customers trust and assortment.”
He said the company will build up its growth in Southeast Asia, including Thailand, by continuing to invest in infrastructure and to build an e-commerce platform and engine.
For infrastructure, the firm will continue invest via three core areas - technology, logistics and payments - in order to lead in the region.
For the task of building an e-commerce platform and engine, the firm has come out with Super - Solutions. Poignant said this platform would accelerate the business growth and enable entrepreneurs to become a Super eBusiness. The Super - Solutions platform allow brands and sellers to select tailored solutions that offer them assistance in branding, marketing and sales, as well as the ability to supercharge their business, he said.
“We have the all-encompassing super-solutions, data, logistics, technology and expertise. We also have the backing of the whole Alibaba ecosystem,” said Poignant.
He said that Lazada by 2030 would serve 300 million consumers, creating 20 million jobs in Lazada's ecosystem and cultivating eight million successful entrepreneurs and small and medium-sized enterprises.
Jing Yin, president of Lazada Group, said that as part of the plan for double-digit revenue growth in Thailand, the country’s position as a strategic market would be further developed.
The top three market categories among Thai customers are beauty and healthcare, electronics and mother and baby products.
“I think that Thailand is key strategic market and Thailand is one of fastest-growing markets. We are aimed at serving brands and sellers of all sizes to ensure they are well-positioned to ride the e-commerce boom in Southeast Asia,” said Yin.
Yin said that the firm by the end of this year expects to see fivefold growth in revenue from LazMall compared with last year’s performance.
Lazada boasts more than 1,500 brands on the platform, with around 450 brands of these distributed in Thailand. Some 80 per cent of the parcels flow through its network.
The firm will set up a warehouse in Bangkok’s Bangna district in the near future. LazMall aims to be the Southeast Asia's No.1 marketplace for global brands with 100 per cent authentic goods, 15-day returns and guaranteed next-day delivery, Poignant said.