Alibaba sets $100 billion gross merchandise volume target for Lazada

People walk past a pop-up store of Asian e-commerce giant Lazada along Singapore’s Orchard Road shopping district as it filled with crowds on Sunday, December 12, 2021.

Joseph Nair | NurPhoto | Getty Images

Chinese e-commerce giant Alibaba has set a target of $100 billion in gross merchandise volume (GMV), the sum total of purchase transactions, for its Southeast Asian marketplace Lazada.

The target, which was shared with investors on Thursday and later in a public online presentation, raises the stakes for the company, which entered the region via an acquisition in 2016 and competes fiercely with rivals.

Lazada generated $21 billion in GMV from September 2020 to the same month in 2021, according to the presentation. It also hopes to serve 300 million customers, about double its current number.

By comparison, Sea’s Shopee, the market leader in the region, generated $35.4 billion in GMV for the full 2020 calendar year.

The division ranks third among Southeast Asian players, behind MercadoLibre and Shopee, according to the presentation.

Lazada has undergone significant personnel changes since its acquisition by Alibaba, with two CEOs stepping down before current CEO Chun Li took the helm in 2020.

Earlier this month, Alibaba announced an executive shakeup that saw Jiang Fan, who previously led the company’s core Taobao and Tmall divisions, appointed to head a new international digital commerce unit that will include Lazada and AliExpress, the company’s e-commerce site targeting parts. from Europe and South America.

Alibaba will conclude its two-day investor summit on Friday with the first major public remarks from Toby Xu, who is expected to replace longtime chief financial officer Maggie Wu. CEO Daniel Zhang will also speak.

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