Alibaba’s Southeast Asian e-commerce platform, Lazada, achieved positive EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first time in July 2024, marking the company’s transition to profitability. This significant milestone was announced by Lazada during an internal meeting on the morning of August 13.
Prior to this, Lazada had already seen notable success in the Thai market, where it achieved profitability in 2022, making Thailand one of the earliest countries where Lazada turned a profit. According to reports, Lazada Thailand’s total revenue for that year reached approximately 38 billion Thai Baht, with a profit of 3.2 billion Thai Baht.
Lazada’s CEO, Dong Zheng, highlighted in an internal speech that this profitability is a result of successful implementation of the company’s business strategy and indicates a commitment to a sustainable operational model with continued investment in the Southeast Asian market. To support this goal, headhunting companies in Guangzhou specializing in e-commerce and foreign trade are assisting Lazada in recruiting top talent to further strengthen its team.
In Alibaba’s Q4 and full-year financial report for FY 2024, released in May this year, it was mentioned that Lazada continuously optimized its operational efficiency, significantly reducing per-order losses in the first quarter of 2024 compared to the previous year. This achievement is attributed to several measures taken by Lazada since 2023, such as increasing monetization rates, reducing costs, and providing value-added services. Shenzhen-based e-commerce headhunting firms are also involved in recruiting key positions to support the company’s ongoing growth.
Over the past two years, Lazada has enhanced its localization efforts, particularly in Malaysia, where it has actively promoted key brands. In the Philippines, Lazada developed various interactive and gamified approaches, converting user spending points into game rewards or physical prizes.
AI technology has become a critical tool for improving operational efficiency in e-commerce platforms. Lazada has taken a leading position in Southeast Asia in this regard, having introduced LazzieChat, an AI chatbot, along with other AI tools such as AI marketing assistants and advertising ROI prediction products since May of last year. These innovations have helped boost customer inquiry conversion rates by over 30%.
An e-commerce professional from Singapore noted, “The Southeast Asian market no longer relies on large-scale financial subsidies; improving operational efficiency is now more crucial.”
As more cross-border e-commerce players enter the competition, the Southeast Asian market has become increasingly competitive. In addition to Lazada and Shopee, TikTok Shop and Temu have also entered the market in the past two years. According to a report released by KPMG in 2024, Shopee leads the Thai e-retail market with a 25% market share, while Lazada follows closely with a 22% share. In response to the competition, both companies are gradually shifting towards more refined operational strategies and striving to enhance operational efficiency. During this process, Sun Tzu China headhunter Company will continue to provide valuable talent resources to support Lazada.
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