Tesco has taken a minority stake in Southeast Asian online retailer Lazada. Retail Week takes a look at the company’s vital statistics.
What does Lazada do?
Etailer Lazada sells general merchandise consumer electronics, clothing, books, toys and homewares across Thailand, Malaysia, Indonesia, Vietnam and the Philippines.
The etailer also has a marketplace service for third party sellers and runs competitions whereby shoppers can vote on their favourite products with a commitment to buy them the following day if they do not win.
Who established the business?
Lazada was founded last year by German internet start-up incubator Rocket Internet, owned by brothers Oliver, Marc and Alexander Samwer. Rocket, founded in 1999, backs 75 businesses worldwide with a combined turnover of $3bn including etailers Zalora and Zalando, food delivery firm Food Panda and payment ventures including Payleven and Paymill.
Alongside Tesco, which invested “tens of millions” of pounds in Lazada, regular Rocket investors including Verlinvest SA and Investment AB Kinnevik also bought into the etailer, in a round of funding which totaled $250m.
Why has Tesco taken a stake?
Tesco multichannel director Robin Terrell said: “There are a number of things we can do from a customer and product perspective, whether it’s sourcing or supply chain.” Terrell said the retailer is unconcerned the venture may cannibalise its existing online non-food sales in Malaysia and Thailand.
Rocket said it would also work with Tesco on “customer analytics, private label development and supply chain management”.
Tesco usually targets market leading positions in every market it operates in so will also be encouraged by the fact Lazada holds this spot in each of its five markets after just 18 months of trading.
Tesco may also have been tempted by the low risk opportunity to test the water in the new markets of Indonesia, Vietnam and the Philippines.
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