Alibaba's Lazada Hits Monthly Profit, Eyes Expansion in Southeast Asia
Alibaba's Southeast Asian e-commerce platform, Lazada, achieved a major milestone by posting a monthly profit for the first time in July 2024, according to SCMP.
Key Details:
Positive EBITDA: Lazada's CEO, James Dong, announced during a town hall meeting that the company recorded positive EBITDA, marking a crucial achievement in its growth strategy.
Growth Drivers: The platform's success was driven by AI-enabled operations, enhanced online marketing, user incentives, and optimized logistics.
Regional Presence: Lazada operates in Singapore, Indonesia, Malaysia, Thailand, Vietnam, and the Philippines and continues to focus on long-term growth and sustainability.
Growth Drivers: The platform's success was driven by AI-enabled operations, enhanced online marketing, user incentives, and optimized logistics.
Regional Presence: Lazada operates in Singapore, Indonesia, Malaysia, Thailand, Vietnam, and the Philippines and continues to focus on long-term growth and sustainability.
Challenges:
Competition: Despite this achievement, Lazada faces stiff competition from $Sea (SE.US)$ 's Shopee, which holds a dominant 48% market share in Southeast Asia.
Future Goals:
Expansion Plans: Alibaba aims for Lazada to reach an annual gross merchandise value (GMV) of $100 billion by 2030.
Financial Context:
Alibaba has invested approximately $7.4 billion into Lazada. In its fourth quarter, Alibaba's international commerce retail business revenue grew by 45% year-over-year to $3.80 billion.
Investor Information:
Alibaba's stock has declined by over 13% in the last 12 months due to intense domestic competition and a weakening domestic economy. Investors can gain exposure to Alibaba through the SPDR NYSE Technology ETF and Invesco Nasdaq Internet ETF.
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