Electricity Giant Alibaba, Jingdong, Amazon Into The "Offensive And Defensive Way"

According to the world clothing shoes and hats net, in March 19th,

Its news website Alizila reported that Alibaba will invest an additional $2 billion to Lazada, the largest e-commerce platform in Southeast Asia.

In addition, Peng Lei will assume the post of Lazada CEO, and former CEO Bittner will serve as senior consultant.

The "marriage" between the Alibaba and Lazada began in 2016.

In April, Ali got a share of Lazada 51% through a $1 billion investment, at that time Lazada was valued at $1 billion 500 million.

Then in 2017, another $1 billion investment increased Ali's share to 83%, while Lazada's valuation reached $3 billion 150 million.

Alibaba is facing rapid growth in international business and expansion of losses.

Alibaba has invested heavily in overseas markets in recent years, which has also brought about corresponding returns.

Since 2016, Alibaba's International

Business growth began to improve, especially in the 16 quarter of 4 quarter (NATURAL year), with the Lazada table, the international electricity supplier business income reached 4 billion 10 million yuan, the growth rate reached 94%.

The latest 17Q4 revenue has reached 6 billion 400 million yuan, up 60%.

Source: DonG collate the company's earnings over the years

But at the same time, Lazada's losses are also eating away at Alibaba's profits.

Before Ali's stake, Lazada's losses in the 2013-2015 fiscal year reached -0.68 million, -1.5 billion and -3.3 billion.

In order to expand at the same time in the 6 markets, Lazada will inevitably need additional funds.

That's why Ali invested 4 billion dollars in 2 years.

What's more remarkable is that besides investing in capital, Alibaba has also invested in human resources. They have replaced management. Peng Lei, one of the 18 founders and senior partners, will serve as Lazada CEO, and former CEO Bittner will be senior consultant.

It seems that the $2 billion is still worth worrying about.

In fact, this is not the first time Ali has adjusted the Lazada team.

In early March, foreign media reported that Li Chun (Chun Li) joined Lazada as chief technology officer, mainly responsible for technology, products and data.

Raymond Yang, as chief product officer, reports to Li Chun. Yang has been in the Alibaba for 8 years and is mainly responsible for Amoy Taobao business.

Lazada also closed the R & D center in Moscow and Bangkok, and some of its employees moved to the remaining R & D centers, located in Shenzhen, Hu Zhiming and Singapore.

With more Chinese capital and Chinese workers joining, the problem facing Alibaba and Lazada is how to integrate different cultures between China and Southeast Asia.

For example, China's technology team is more eager to speed up the launch of products, and then update the previous version of the revised version of the problem.

However, this style may not be suitable for Southeast Asian corporate culture, and how to deal with such a problem may be a priority for Peng Lei.

Competition -- giants go all in to attack and defend.

In recent years, due to the saturation of their domestic markets, Chinese and American electricity giants have moved to Southeast Asia and India.

Expansion is not yet clear. Increasing investment seems to be the only option for giants.

Amazon has a cautious layout in Southeast Asia and is on the defensive.

By contrast, they are much more radical in India.

Although the Flipkart started 6 years later than the local electricity supplier, the rising trend is fast. At present, Amazon and Snapdeal and Fliipkart share three points.

Bezos has promised to invest $5 billion in the India market in the next few years ($2 billion has been invested and $3 billion in the future), which is more than Flipkart's 3 billion 200 million and Snapdeal's 1 billion 700 million dollars.

EBay, an old business tycoon, set up an e-commerce joint venture Blanja and set up an office in 2016 with Telkom, a state-owned telecom operator in Indonesia.

In February, there were rumors that they spent $700 million to buy Japanese assets from Qoo10. Although Japan does not belong to the Southeast Asian market, Qoo10 is a very influential e-commerce platform in Southeast Asia. At present, there are 7 shopping websites in 5 countries, such as Japan and Singapore.

Therefore, we can not rule out that eBay will further enter the Southeast Asian market in the future.

In India, they invested in Flipkart to compete with their old rival, Amason.

Jingdong's actions in Southeast Asia are much smaller.

They launched the Indonesian station in 2015.

Last November, they jointly launched a joint venture with Thailand retail giant Shang Tai Group to launch the JD Central platform.

In January of this year, they invested $44 million to invest in Vietnam's e-commerce platform Tiki.vn.

Alibaba is undoubtedly the most aggressiveness of several giants, and business, logistics and payment are attacking the whole industry.

In 2015, they invested $500 million in India's e-commerce platform Snapdeal, while ant gold clothing invested Paytm in the same year. Now Paytm has become the largest mobile payment tool in India, and has begun to enter the field of e-commerce.

In 2017, Ali cloud landed in India.

In February this year, Alibaba and ant gold clothing invested two start-up companies in India.

Ali led the online grocer Big Basket for $300 million, while ant gold suit invested $200 million to India food recommendation platform Zomato.

In Southeast Asia, rookie spent $249 million in 2014 to acquire Singapore Post's 10.35% stake.

In March 2017, the first eWTP was launched in Malaysia.

Tmall has launched the "Taobao Collection" site in Malaysia and Singapore.

In addition, Hello pay has also acquired Ascend Money, Thailand's Mynt, Indonesia's Emtek and other mobile payment providers in addition to pay.

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Market - the eve of the outbreak

The reason why the giants are investing heavily is to see greater business opportunities.

Southeast Asia with a population of 6.5 is considered to be one of the most promising E-commerce markets in the future.

According to the US eMarketer company, more than 40% of the B2C e-commerce business will take place in the Asia Pacific region. The market size is expected to increase from US $11 billion in 2015 to US $25 billion in 2020, with a compound growth rate of 17.7%.

Source: eMarketer

In 2015, the per capita disposable income of Southeast Asia exceeded US $3000, and the network coverage rate was about 32%, about 200 million Internet users.

Similar to China, with the popularity of smart phones and mobile networks, the number of Internet users in the region is expected to increase to 294 million this year.

Online shopping industry is undoubtedly on the eve of the outbreak.

Faced with a good external environment, Lazada has taken corresponding measures to try to seize this opportunity.

In 2017, they launched a plan called "Everyone Can Sell" to expand the number of sellers on the platform from 100 thousand to 300 thousand.

According to Alizila's introduction, Lazada currently has 145 thousand international and local sellers, including 3000 brands, covering 560 million consumers.

It now appears that the plan is proceeding step by step.

Malaysia is a relatively smooth development area of Lazada. At present, the growth rate of the seller is about 3000-4000 per month.

Last year, double 11 increased by 3 times.

In addition, Alibaba joined the Malaysia government last year to build a digital free trade zone. This is also expected to further promote the participation of local small and medium-sized sellers in international trade.

The goal of the Malaysia government is that by the year 2025, the digital trading area can help 1 000 enterprises to complete the operation of US $65 billion, including import, export and phipment.

Lazada now attracts commissions by reducing commissions. It also provides community functions to facilitate sellers to learn from each other.

Southeast Asia is different from other emerging markets, where the development of local e-commerce is better.

In addition to Lazada, Singapore's Qoo10 and Shopee, as well as Vietnam's Weshop, have all developed rapidly.

On the whole, the rapidly growing economy, digital lifestyle and a large number of young people provide an opportunity for the outbreak of the electricity supplier.

At the end of 2015, the "ASEAN Community AEC" was officially completed, and the single market of ASEAN was emerging. It promoted the free flow of goods, services, capital and skilled labor in the region, and the role of cross-border logistics was also increasingly prominent.

With the integration of scattered markets, the integration of Southeast Asian market will attract more large players to enter, and this "offensive and defensive road" drama will also continue.

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