Lazada joins forces with Vietnamese retailers

Vietnam Lazada, part of Singaporean e-commerce startup Lazada Group which sells everything from rice cookers to smartphones and operates mainly in Southeast Asia, has signed deals with 40 Vietnamese retailers including major consumer electronics chains Cho Lon, Tran Anh and Home Center, as well as global cookware manufacturer Lock&Lock and local jewelery maker PNJ.

Lazada plans to cater for local consumers through the deals, while Vietnamese retailers can make use of the Lazada brand name to expand their customer bases.

Lazada has expanded rapidly in Southeast Asia, home to some 600 million people, since it was founded in 2012.

The e-commerce platform has increased its focus on the Vietnamese market where consumers spent more than US$4 billion shopping over the internet last year.

It is a part of Lazada’s development strategy to join forces with Vietnamese retailers, said CEO Alexandre Dardy.

“Our message is that whatever you buy offline you can buy it online,” said the chief executive officer, adding that Lazada is working to build consumer confidence in online shopping and the platform.

Internet and smartphone usage have been rising rapidly in Vietnam in recent years, meaning more people are beginning to shop over the internet.

Kid Plaza, a giant supplier of baby products, said its monthly revenues have trebled for the past three months since it sealed the deal with Lazada. The retailer highlighted that the agreement has helped it gain access to one of the largest platforms in the Southeast Asia region with a large and growing consumer base.

Lazada has set a goal of claiming at least 25 percent of Vietnam’s online shopping market.

Vietnam, with a population of 93 million, just three years ago was ranked as the smallest e-commerce market in the region in terms of sales. Now online retail is gaining momentum with 49 million internet users increasingly turning to online shopping.

The country projects 30% of the population will buy goods and services directly over the internet in 2020, with each shopper spending an average of US$350 per year.

In an attempt to boost e-commerce, the Southeast Asian country is trying to convince 50% of urban residents to convert to non-cash payments such as debit and credit cards.

Vietnam expects revenue from online retail to hit US$10 billion by 2020, accounting for 5% of the total nationwide revenue from sales of goods and services.