Lazada Group is in South Korea seeking partnerships with Korean brands and sellers, promising them new growth opportunities in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
At a Lazada Group-hosted media briefing held today at Millennium Hilton Seoul, the Southeast Asia-focused online shopping platform shared its optimistic view of the huge potential of its e-commerce sector, driving new opportunities for Korean brands and sellers to build their online business in this region.
Will Ross, CEO of Lazada Crossborder, remarked, “Southeast Asia’s Internet economy is fast growing, with 260 million existing users and 3.8 million new users coming online every month, according to new research by Temasek and Google. This trend will give rise to significant opportunities in Southeast Asia’s e-commerce marketplace. Online retail penetration is in the budding stages, currently at about 3 percent of total retail sales in Southeast Asia, compared with 14 percent penetration both in China and the U.S. It is a market with vast potential, given its growing middle class and rising per capita GDP.”
According to an AT Kearney report, the Southeast Asian online retail market has the potential to grow at up to 25 percent per year, thanks to increasing purchasing power, growing Internet penetration and improving online offerings.
Launched in 2012, Lazada is the number one online shopping and selling destination in Southeast Asia. As the pioneer of e-commerce in the region, Lazada helps more than 135,000 local and international sellers as well as 3,000 brands by providing a wide range of tailored marketing, data and service solutions through its platform.
During the briefing, Ross highlighted the firm’s strong initiatives with entertainment partners in Korea to enrich Lazada’s product assortments. Lazada recently established commercial partnerships with GenieWorks, an online-to-offline service operator in Korea, and Studio Dragon, a local production company under CJ E&M, to collaborate in promoting Korean products on Lazada. Additionally, Lazada entered into a partnership agreement with Humap Contents, a local entertainment agency, to bring the latest Korean entertainment and trends to Southeast Asian consumers.
Hyunchul Lee, CEO of Humap Contents, attended today’s briefing and said, “We’ve seen a rapid growth of the Korean wave in the Southeast Asian countries where Lazada operates its online shopping platform. Specifically, TV dramas, food, K-pop, and artist content are getting more popular in the region, compared with East Asia including China and Japan. I expect our partnership with Lazada will provide a powerful media channel for us to reach consumers who are craving Korean content in these markets.”