Alibaba acquires controlling stake in Lazada

Alibaba Group, the guys behind global trading site Alibaba.com have just acquired a large holding stake of eCommerce platform Lazada, following an acquisition of shares and a USD500 million investment in the company.

The transaction is expected to help the brands (and distributors) that are already on Alibaba’s platform to gain access to the SEA consumer market through Lazada. As of the moment, Lazada operates in Malaysia, Indonesia, Thailand, the Philippines, Singapore and Vietnam; with a combined estimated Internet user base of 200 million, being well known for having a huge variety of good for sale at a below retail prices.

Considering a lot of people do sales online, the move is likely to help boost eCommerce in the region somewhat for both companies.

“Globalization is a critical strategy for the growth of Alibaba Group today and well into the future,” said Michael Evans, President of Alibaba. “With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation for future growth in one of the most promising regions for eCommerce globally. This investment is consistent with our strategy of connecting brands, distributors and consumers wherever they are and support our ecosystem expansion in Southeast Asia to better serve our customers.”

As for us consumers, this means that online shopping on either platform is just going to get better with more diverse options on an already incredibly wide spectrum of goods available on both Lazada and Alibaba. Do you think this move will be good for everyone? let us know in the comments.

[SOURCE]