Lazada veteran to steer the business
Earlier this month, Alibaba (BABA) named a new CEO for its Southeast Asia-focused subsidiary, Lazada. The changes saw Pierre Poignant replace Lucy Peng as Lazada CEO. Peng, an Alibaba co-founder, took the reins at Lazada in March. The reshuffle came after Alibaba announced that it was making an additional $2.0 billion investment in the business. Alibaba owns more than 90% of Lazada.
The race for the $102 billion e-commerce market
The latest reshuffle at Lazada comes after Google (GOOGL) and Temasek released a report predicting rapid growth of the Southeast Asian Internet economy. According to the report, the industry is on pace to grow to $102 billion by 2025 from an estimated $72 billion in 2018.
Alibaba’s competitors in Southeast Asia’s e-commerce industry include Tencent (TCEHY), Amazon (AMZN), and JD.com (JD). Tencent backs Shopee, another leading online marketplace operator in Southeast Asia. Amazon introduced its same-day delivery service, Prime Now, in Singapore last year to stimulate its growth in Southeast Asia, and JD.com operates several online marketplaces in the region. JD.com has also partnered with Google to grow its global footprint quickly.
Several horses in the race
Alibaba has several horses in the race for Southeast Asia’s e-commerce revenue. In addition to Lazada, it also backs Tokopedia, a leading e-commerce provider in the region.