Lazada partners with 40 Vietnamese retailers
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Southeast Asian eCommerce giant Lazada has partnered with 40 Vietnamese retailers to expand their businesses.
The partner businesses include electronics retailers Cho Lon, Tran Anh, Home Center, cookware chain Lock&Lock, and jeweller PNJ.
Lazada expects the deals will help it cater better to local consumers, developing its business throughout Vietnam market with the message “whatever you buy offline, you can buy it online”.
Vietnamese retailers, on the other hand, hope to expand their customer bases via the Lazada brand and reputation. Kid Plaza, a baby product supplier, says it has tripled its monthly revenue after selling its items on Lazada.
Founded four years ago, Lazada Vietnam has become one of the biggest online shopping sites in Vietnam, sharing the US$4 billion worth market last year. Through the new deals, Lazada plans to claim at least 25 per cent of Vietnam’s online shopping spend.
Lazada’s plan seems achievable when almost 50 per cent of Vietnam’s 93 million population are using the internet. Research predicts that by 2020, 30 per cent of the population will regularly buy goods and services online, with an average spend of US$350 per year. This will take online retail sales to $10 billion.
Questions & Answers
Q.What is the primary motivation for Lazada in forming these new partnerships?
What is the primary motivation for Lazada in forming these new partnerships?
Lazada expects these partnerships will help it better serve local consumers, expanding its business across the Vietnamese market. The company aims to convey that goods available offline can also be purchased online, enhancing its market presence.
Q.What specific benefits do the Vietnamese retailers hope to gain from partnering with Lazada?
What specific benefits do the Vietnamese retailers hope to gain from partnering with Lazada?
Vietnamese retailers are hoping to broaden their customer bases by using Lazada's established brand and reputation in the market. One partner, Kid Plaza, has already reported a significant increase in its monthly revenue since joining.
Q.What is the projected value of online retail sales in Vietnam by the year 2020?
What is the projected value of online retail sales in Vietnam by the year 2020?
Research predicts that by 2020, online retail sales in Vietnam will reach a total of $10 billion. This forecast is based on an expected 30 per cent of the population regularly buying online, with an average spend of US$350 per year.