Alibaba's Unit- Lazada Is Looking To Expand Into Europe.

CIO Review Europe | Thursday, May 05, 2022

Alibaba Group aims to expand its Southeast Asian business, Lazada, to Europe, as the Chinese e-commerce firm seeks additional foreign expansion despite declining domestic opportunities.

FREMONT, CA: Alibaba Group Holding Limited, collectively called Alibaba, is a Chinese multinational generation agency focusing on e-commerce, retail, Internet, and generation. The agency gives consumer-to-consumer (C2C), commercial enterprise-to-consumer (B2C), and commercial enterprise-to-commercial enterprise (B2B) income offerings through internet portals, in addition to digital fee offerings, purchasing engines like google and cloud computing offerings. It owns and operates a numerous portfolio of corporations around the sector in several commercial enterprise sectors.

Alibaba Group aims to expand its Southeast Asian business to Europe. The reason behind this shift is that the Chinese e-commerce firm seeks additional foreign expansion instead of declining domestic opportunities. In the beginning, Alibaba Group Holding Ltd. reconstructed its e-commerce trade in China and international divisions. This was done so that the latter could be led by Jiang Fan, head of Alibaba's flagship Taobao. Lazada intends to target local European sellers, while AliExpress will continue to focus mostly on cross-border sales from China. Lazada was founded by Germany's Rocket Internet Technology in 2012, and Lazada Thailand CEO James Dong will help lead the endeavour. In the year of 2016, Alibaba acquired a controlling stake in it for USD1 billion. In gross merchandise volume for 2021, Lazada generated USD 21 billion and gathered 159 million users.

In China, Alibaba faced fierce competition from rivals such as Pinduoduo Inc (PDD.O) and Byte Dance subsidiary Douyin. The new regulations have few opportunities when it comes to expansion. In December, Alibaba said that it had set goals for the Southeast Asian marketplace of about USD 100 billion in gross merchandise volume and had 300 million users. The news of the expansion came from sources related to Reuters. The sources said that the expansion took place months after Alibaba's logistics arm opened a central hub in Belgium for European sales. However, the sources did not disclose which European countries Lazada planned to expand to.

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