Alibaba plans to grow Southeast Asia’s e-commerce arm Lasada to $ 100 billion

[ad_1]

Alibaba has outlined its ambitious vision to grow its Southeast Asian e-commerce business to $ 100 billion (approximately Rs. 7,60,140 crore) in transaction sales and pledge to achieve carbon neutrality in its operations by 2030.

China’s largest e commerce company on Friday unveiled its vision for its Southeast Asian e commerce division, Lasada, in presentation slides uploaded on its site for its annual Investor Day, which generally shares the earnings figures and future strategies of its business units with investors. During a presentation on Friday, Alibaba CEO Daniel Zhang outlined its carbon emissions targets.

The project, defined as the volume of Lasada’s total merchandise the volume of total sales traded on its site came as the Chinese company saw evidence of growth overseas amid growing competition in the Chinese market and a sluggish economy.

According to the presentation slides, Alibaba also aims to serve Lasada with 300 million consumers.

The Hangzhou-based company acquired a controlling stake in Lasada in 2016, before investing an additional $ 2 billion (approximately Rs 15,200 crore) to expand its business in 2018.

Alibaba’s incoming chief financial officer Toby Xu said during a presentation on Friday that its Chinese business division faces “slow-moving macro-environment and near-term challenges of high-level competition.”

“This has led to slower GMV and revenue growth in the recent quarter,” he said. “But we also see opportunities to tap into new address markets to grow new users, which will keep us well off in the long run.”

Currently, Lasada’s total merchandise volume in the last twelve months from September 2021 has reached $ 21 billion (approximately Rs. 1,59,630 crore) with 159 million monthly active users.

Alibaba CEO Daniel Zhang said in a separate presentation on Friday that the company sees “great potential in international markets” moving forward.

“In Southeast Asia, eCommerce penetration is only 11%, and Lasada’s annual consumers reach only 34% of regional Internet users,” Zhang said. “There is tremendous potential in both the overall market size and our penetration.”

Alibaba’s drive to expand its Southeast Asian business is facing stiff competition in its domestic market, with short investment from sales e-commerce competitors such as Quizho, as well as group acquisition platform Pinduoduo, sales and marketing costs. Expands its user base.

The company has faced tighter regulatory inspections over the past year as Chinese officials have stepped up regulatory oversight in the technology sector, following concerns that some large technology companies are engaging in anti-competitive and monopolistic behavior. Alibaba was fined $ 2.8 billion (approximately Rs. 21,300 crore) earlier this year after authorities ruled it had breached trust rules.

Separately on Friday, Zhang aims to achieve carbon neutrality in its own operations by 2030, while halving the level of emissions throughout its supply chain and business ecosystem.

Zhang said the company also plans to reduce emissions using more up-to-date and “energy-saving and performance-enhancing technologies”.

Alibaba will mobilize consumers, merchants, business partners and service providers to participate in their carbon reduction efforts. Zhang cited examples such as promoting the consumption of green products, green transport options and promoting the reuse and resale of pre-owned products.

Alibaba’s pledge to reduce its carbon footprint also coincides with China’s major push to achieve carbon neutrality by 2060. The country is currently the world’s largest carbon emitter.

Chinese officials have since set energy targets on several state-owned companies in the country, although most are struggling to contain coal consumption making it one of the largest contributors to China’s massive carbon emissions.


[ad_2]

Leave a Comment