- Alibaba’s Lazada turns Ebitda positive
- Southeast Asian e-commerce heats up
- Alibaba’s global strategy gains traction
From Red to Black
Alibaba’s Southeast Asian e-commerce arm, Lazada, achieved a significant milestone in July by turning Ebitda positive for the first time.
This development marks a crucial step in Alibaba’s strategy to expand its international presence amid slowing growth in its home market of China. Lazada CEO James Dong shared this news in an internal meeting, highlighting the effectiveness of the company’s business strategy.
Battling Giants in Southeast Asia
Lazada operates in six Southeast Asian markets and aims to serve 300 million customers by 2030. However, the company faces stiff competition from regional powerhouses like Sea’s Shopee, as well as global players such as Amazon and TikTok Shop.
Despite the challenging landscape, Lazada’s progress towards profitability demonstrates its resilience and potential for growth.
Alibaba’s Global Push
This positive turn for Lazada comes at a critical time for Alibaba. The tech giant’s international e-commerce division, which includes Lazada, AliExpress, and others, saw a 45% year-over-year revenue increase in the quarter ending March.
This growth significantly outpaced Alibaba’s overall 7% increase, underscoring the importance of its global expansion efforts in driving future success.
