Alibaba’s Next Big Move: From Southeast Asia to Europe – And You’ll Love It
Alibaba’s Southeast‑Asian powerhouse Lazada is on a mission to conquer Europe, according to two insiders who spoke with Reuters. While China’s market starts to feel a bit stale, the tech giant is looking up – and across – for fresh growth opportunities.
Why Europe? What’s the Plan?
After Cainiao opened a massive distribution hub in Belgium, it’s clear Alibaba is serious about making Europe its next big playground. Lazy, I mean, not “lazy”—Lazada aims to connect local vendors with the billions of shoppers roaming the continent. Meanwhile, AliExpress will keep focusing on its core cross‑border charm, selling everything from phone charms to trendy tees straight from China.
- Local vendors get a big boost from Lazada’s expertise and logistics.
- AliExpress keeps it simple: Chinese goods for global consumers.
- James Dong, the CEO of Lazada Thailand, is set to lead the European rollout.
- Alibaba’s overseas commerce head, Jiang Fan, visited Singapore in April to nail down the details.
What About the “Bored” Competitors?
In China, Alibaba faces stiff competition from Pinduoduo and ByteDance’s Douyin (yes, the TikTok subsidiary!). New regulations are also squeezing the firm’s expansion muscles.
Lazada itself is no small shoe—after earning a whopping US$21 billion in gross merchandise volume for September‑2021 alone and boasting 159 million users, it’s battling fiercer rivals like Shopee. Shopee has even made its way into Poland, Spain, and France before pulling out of India and France last March.
Why Lazada? A Quick Glimpse Back in Time
Founded in 2012 by Germany’s Rocket Internet, Lazada was conceived as Southeast Asia’s Amazon. Alibaba swooped in with a controlling stake in 2016 for about US$1 billion, making it the largest foreign deal at that time. Today, Alibaba aims for a staggering US$100 billion in gross merchandise volume and 300 million users on the platform.
What’s Next?
Although the specific European countries Lazada is targeting remain under wraps, the decision is a sign that Alibaba isn’t resting on its laurels. If you’re hungry for deals from Asia and excited about #Lazada making European streets buzz, keep an eye out—you might soon find yourself clicking “add to cart” in your local market.
