Lazada (Alibaba) takes aim at Armani and D&G, aiming for $100 billion in trade volume

Lazada, one of the subsidiaries of Alibaba Group Holding Ltd., is courting major European houses to oust its Asian rivals and wants to reach $100 billion (91.52 billion euros) in trading volume by 2030.

At the beginning of October, the company’s representatives met in Milan with the founders and managers of more than a hundred Italian brands interested in the potential of Southeast Asia, which could be exploited through the LazMall Luxury platform, which was launched recently. Among them are Armani, Dolce & Gabbana, Ferragamo and Tod’s, according to information provided by commercial director Jason Chen to Bloomberg News.

This seduction operation is just one of the axes of a campaign aimed at ousting Shopee (Sea Ltd.), TikTok (ByteDance Ltd.) and PDD Holdings Inc. in the online commerce war for the South East Asian region, with an estimated potential of $186 billion (€170.23 billion) by 2025. TikTok and Shopee in particular have gained a head start in key markets such as Indonesia and Singapore.

“Lazada is ready to work hard to enter this new phase of e-commerce development, where profitability, marketing and long-term profit are priorities,” Jason Chen said in a Zoom interview. “The current effort to strengthen our luxury offering will then form part of this strategy, at the same time as we strengthen our brand positioning.”

Lazada and AliExpress are Alibaba’s two flagships outside of China. Abroad has become one of the most important growth factors due to the economic slowdown in the company’s home country.

Alibaba, long in Beijing’s crosshairs, is now in the hands of new management and wants to continue its expansion on the Asian continent. Sea, one of its main rivals, raised its retail sales forecast last August, showing its increased market penetration.

An advanced offer will be crucial to the implementation of Alibaba’s projects, if we are to believe Jason Chen. Like India and the Middle East, Southeast Asia is one of the world’s fastest growing markets for luxury goods, especially now that China is struggling with a slowing economy.

Unlike its competitors, Lazada can offer brands better control over their pricing and marketing, the executive claims. Tmall Luxury Pavilion, which was founded in 2017 and now boasts nearly 200 brands, is an example for Lazada to follow, says Jason Chen.

“When a company decides to open its own online store on our platform, it controls all operations, from pricing to logistics,” he explains. “This is a very important aspect for fashion houses that want to keep track of their entire sales process.”