Analysis of strategy of Lazada operating

in Vietnam
Lecturer: Le Thai Phong

Members:

L Phng Tho 1215340079

ng Qunh Trang 1213340084
Phm Hng Hnh - 1213340028
Trn H Phan - 1213340067
Ph Minh Dng - 1214340013
Contents

INTRODUCTION ................................................................................................................... 3
PART I: BACKGROUND TO LAZADAS ROAD TO INTERNATIONALIZATION ...... 4
I. A brief history of Lazada .......................................................................................... 4
1. Lazada Group .......................................................................................................... 4
2. Lazada Vietnam ...................................................................................................... 5
II. A brief view of Vietnam e-commerce ................................................................... 6
III. Result of Lazadas business activities ................................................................. 7
IV. An analysis of Southeast Asia market ...............................................................12
PART II: BUSINESS STRATEGIES OF LAZADA IN VIETNAM...................................... 14
I. External analysis........................................................................................................ 14
1. Macro-environment analysis ............................................................................. 14
2. Industry analysis .....................................................................................................16
II. Internal analysis .........................................................................................................18
1. International strategies .........................................................................................18
2. Business strategies.................................................................................................19
3. Modes of market entry........................................................................................ 22
4. Performance .......................................................................................................... 23
PART III: CONCLUSION ..................................................................................................... 26
REFERENCES ........................................................................................................................ 27

2|Page
INTRODUCTION
Nowadays, thanks to the development of the computer science and the
internet people can easily access to wide range of information such as news
from other countries all over the world or communicate with people from many
places. One of the most convenient things that these developments bring to us
is that people now can go shopping just through some clicks on the internet.

There are a lot of advantages from e-commerce on the internet. It helps

increase the trading of consumers goods, bring consumer closer to the
manufacturer. E-commerce is another form of retailing. Now each page of e-
commerce website is a store that serves its customers 24 hours a day. Consumers
can choose from clothes to electronic appliances without going to many
different places. Not only saving time for buyers, but also e-commerce creates a
new potential market for retailers and manufacturers.

However, e-commerce also creates competition for the manufacturers and

retailers themselves. A company now must compete to other companies with
wide ranges of products from different countries because foreign companies
now easily access to the market through e-commerce.

It is definitely an undeniable fact that e-commerce is a potential opportunity but

it does hide some risks for the one who rushes to do that. Therefore, in order to
know more deeply about e-commerce, we carry out this report.

Because our major is Finance and Banking, this is the first time we have been
carrying out such a deep research on this topic. Therefore, there should be
some unavoidable mistakes due to our limited knowledge and time of research.
We really appreciate your feedback on this so that we can do better next time.

Last but not least, we really want to express how thankful we are for the fact
that you have delivered one of the most interesting classes we have ever taken
in Foreign Trade University.

3|Page
PART I: BACKGROUND TO LAZADAS ROAD TO
INTERNATIONALIZATION
I. A brief history of Lazada

The Wall Street Journal says: E-commerce Start-up Lazada is moving quickly
in its quest to become Southeast East Asias Amazon. (November 21, 2014)

1. Lazada Group

Lazada is the leading online shopping website and selling destination for
assorted merchandise in Southeast Asia, launched in Indonesia, Malaysia,
Philippines, Thailand, and Vietnam in 2012 and launched in Singapore in May
2014.

It provides a secure and convenient online shopping service with wide range
products ranging from electronics appliances to household goods, clothes,
and sports equipment. Lazada is also capable of delivering additional
services such as multiple payment options, free returns and extensive
customer service, and warranty commitments.

The parent company of Lazada Group is Rocket Internet, a Germany internet

company headquartered in Berlin. The company builds online startups and
owns shareholdings in various internet companies, including Dafiti,
Foodpanda, HelloFresh, Home24, Jumia, Jovago, Lazada, Zalora and
Spotcap.

4|Page
 Lazada has 9 main investors, which are Rocket Internet, Verlinvest,
Investment AB Kinnevik, Temasek Holdings, Tesco, Access Industries, HV
Holtzbrinck Ventures, Summit Partners.

2. Lazada Vietnam

Since establishing in Vietnam in February 2012, Lazada has gained the trust as
a leading brand name in e-commerce all over the countries. Lazada
Vietnam is pioneering e-commerce by offering a fast, secure and convenient
online shopping experience with a broad brand and over 40,000 products in
many categories ranging from mobiles and tablets and consumer electronics
to household goods, toys and sports equipment. Lazada Vietnam always tries
its best to provide customers the best possible offering: multiple payment
options such as cash on delivery, free returns and extensive customer service
and warranty commitments. Shortly after establishment, Lazada has
launched the mobile application that helps the customer access easily and
comfortably go shopping anywhere and anytime. This is the reason why
Lazada exceeded 1 million orders, 85% of these orders in the city areas and
90% of them are delivered within the day. The good news to Lazada is that
on June 2013, Verlinvest joined the current investors by injecting $100 million
of capital into Lazada Group. This news increased the confidence of the
investors in the wealthy growth of Lazada in Vietnam as well as the Southeast
Asia region. All of above are evidences of Lazada Vietnams long term
commitment to the region - all for customers' trust. Lazada.vn is trying to be
the biggest retailing platform in Viet Nam.

5|Page
II. A brief view of Vietnam e-commerce

According to Vietnams E-commerce and Information Technology Agency

(VECITA), by 2015, B2C e-commerce sales will reach more than $4 billion.
Current sales are estimated to be around $2.2 billion, with an average
spending of $120 per capita. The strong growth that has been predicted is
primarily due to the fast increasing number of internet users.

In 2013, Vietnams online population reached a total of 32.6 million users; this
represents 35.6% of the total population. The majority of these current users
tend to be quite young, with 73% under 35 years old. Of current online
shoppers, 59% are women and 41% are men. According to recent surveys,
92% of internet users go online every day.

Most importantly, in terms of e-commerce, 61% of the countrys internet users

have bought at least one item online.

VECITA believes that by 2015, 40-50% of the countrys population will be

online and will spend around $150 per capita on e-commerce purchases.

The market today:

Currently, the e-commerce market is quite fragmented and there is no clear

market leader. The industry has been somewhat slow to start due to the lack
of experience many Vietnamese people have with the concept of online
shopping. Many people dont believe in the quality of products until they
physically touch them and they usually prefer to buy the item at a physical
store after they have viewed it on a website. It is thus incumbent upon e-
commerce companies to battle against this skepticism and create trust
between the customers and the online shopping sites.

Foreign companies (such as Rakuten) are entering the market and more
local companies are merging with each other to remain competitive against
the larger foreign competitors (Eg: CungMua and NhomMua). However, it is
clear that the market is still wide open and relatively easy for new companies
to make their entrance.

6|Page
III. Result of Lazadas business activities

Launched in 2012, Lazada has grown rapidly with operations in Indonesia,

Malaysia, Philippines, Singapore, Thailand and Vietnam, and a sourcing
center in Hongkong; also gained trust from many leading sector specialists
and investors.

Having been active for 3 years, Lazada has reached to $384 million in gross
merchandise volume (GMV) at the end of 2014 driven by its rapid assortment
growth and focus on delivering an effortless shopping and selling
experiences to its customers and sellers. Changing to a marketplace model,
it has been successful with revenue increasing more than 20 times from
January to December 2014 and approximately 10.000 marketplace sellers
active on the platform.

(Source: www.lazada.com)

In marketing performance, Lazada has spent a huge of money for online

marketing channels: Google Ads, Facebook Ads to attract unique visitors to
its websites. According to its statistical analysis, more than 55 million unique

7|Page
visitors per month, more than 9 million mobile app downloads and exceeding
11 million fans on Facebook, its brand awareness has rapidly outgrown
competition and created a lasting competitive advantage. Lazada
becomes the largest e-commerce platform in Southeast Asia.
The Economist says: Lazadas rapid growth has started to rouse competitors,
including the big conglomerates whose shopping centers dominate the
regions retail markets. (May 7, 2015)

(Source: Rocket Internet FY 2014 Report)

8|Page
In financial performance,

Key financials and KPIs

$ million FY 2013 FY 2014
GMV 94.8 383.8
% growth 304.8%
Net revenues 75.5 154.3
% growth 104.2%
Gross profit 5.2 22.4
% growth 6.9% 14.5%
Adj. EBITDA (58.5) (146.7)
% of GMV (61.7%) (38.2%)
% of revenues (77.4%) (95.1%)
Cash position 251.8 198.0

Total orders (m) 1.2 3.4

% growth 176.1%
Total transactions (m) 1.3 6.9
% growth 432.3%
Total customers (m) 0.9 3.9
% growth 352.2%
Active customers (LTM,
0.8 3.3
m)
% growth 331.7%
(Source: Rocket Internet FY 2014 Report)

As can be seen on the financial information above, we can also note that
adjustment EBITDA loss more than doubled due to heavy expansion of own
fulfillment fleet and investment into technology and marketing. One of the
most key highlights of Lazada last year was that it secured a USD $200 million
funding round from Temasek, a large investment company owned by the
Government of Singapore and existing investors. Customer base is continuing
to increase rapidly from 3.9 million at the end of 2014 to 5.3 million at the end
of Q1 2015.

9|Page
 Lazada is solving all of region challenges related to logistic and supply chain
to become the best platform to customers.

South East Asia region is a Lazada is developing solutions for

challenging environment these challenges

Ramp up of own fleet last mile

Transport Shallow, unsophisticated
capability
and inefficient transport
Granular management
networks (3PLs)
multiple 3PLs network
Long & variable lead-times
Full technology integration with
3PLs

Ramp up of fulfillment network

Fulfillment Poor warehouse
(main metro fulfillment center
infrastructure
& short tail fulfillment centers)
Limited 3rd party offering
Build of own fulfillment centers
(build to suit)

Training & coaching of

Supply High variability of supplier
merchants, simple & intuitive
Chain sophistication
online platforms
Low penetration of
Integration & control of supply
technology & online
chain with direct pick-up at
merchant

Biggest & first network of cash

Payment Low credit card
on delivery
penetration & high costs
Credit card on delivery
Low trust & fraud aversion
Online wallet

(Source: Rocket Internet FY 2014 Report)

10 | P a g e
Its network continues to expand: increasing last mile capability and number
of integrated 3PL partnerships. According to Rocket Internet Report in March
2015, Lazada has achieved 85% of Lazadas orders shipped within 48 hours,
58 last mile distribution hubs and 61 logistics partners.

(Source: Rocket Internet FY 2014 Report)

11 | P a g e
IV. An analysis of Southeast Asia market

Southeast Asia is a big potential e-commerce market. According to Tech in

Asia, investors poured over half of billion dollars into Southeast Asia e-
commerce start-ups in 2013 - more than 90% of all publicly disclosed
investments in Southeast Asian internet startups that year.

Opportunity:

Increase in Internet users and digital buyers

(Source: International Monetary Fund, eMarketer, eCommerceMILO,)

In Southeast Asia, the number of Internet users is increasing every year and
accounts for a large percentage of total population, in which, more people
are willing to spend on online shopping. As can be concluded, more than
31% of individuals in Southeast Asia had internet access in 2013, which is

12 | P a g e
impressive when viewed in the context of penetration growth - 344 million
internet users in 2005, and more than 999 million just six years later.

Consumer spending

(Source: Rocket Internet FY 2014 Report)

According to the Organization for Economic Cooperation and Development

(OECD), middle class consumers in Southeast Asia accounted for 28% of the
global middle class in 2009, and are expected to account for more than 50%
by 2020. Spending by these middle class consumers accounted for 23% of
total global spending in 2009, and is predicted to reach more than 40% by
2020.
Challenge:
Market fragmentation
Southeast Asia is a large, fragmented market, in which each country requires
e-commerce companies to negotiate a different set of laws, consumer
preferences and other complicating factors.
Low Internet / Smartphone Penetration
Although more people have Internet access, internet penetration in much of
Southeast Asia remains low. According to 2012 data from ITU, internet
penetration was below 40% of the population in Southeast Asian countries
except for Singapore, Malaysia and Brunei. It was less than 20% in Indonesia,
and in the single digits in the frontier economies of Laos, Cambodia and
Myanmar.

13 | P a g e
PART II: BUSINESS STRATEGIES OF LAZADA IN VIETNAM
I. External analysis
1. Macro-environment analysis
a. Politics

The Socialist Republic of Vietnam is a single-party state. Its current state

constitution, which replaced the 1975 constitution in April 1992, asserts the
central role of the Communist Party of Vietnam in all organs of government,
politics and society. In 2011, Viet Nam held the 11th Congress of Vietnam
Communist Party, in which happened the Election of the Party Central
Committee for the new term.

=> The political situation in Vietnam is considered to be stable.

b. Economy

Following is the figure of the selected macro indicators of the economy in

2007 - 2011:

Indicators 2007 2008 2009 2010 2011

GDP growth (%) 7 6 5 6 6

CPI (%) 12.6 23.0 6.52 11.75 18.0

FDI commitments 21.3 66.5 21.5 18.6 15.0

(USD Bn)

Credit growth (%) 54 21 37.7 27.6 15.0

USD/VND (bank 16016 17486 18600 19500 21500

rate)

14 | P a g e
 Vietnam's inflation 2007 - 2011
25

20

15

10

0
2007 2008 2009 2010 2011

CPI (%)

Economy was fluctuated. Inflation (CPI) and USD/VN exchange rate

increase dramatically which makes VND lose value. People need to spend
more and they want to save, so there was a big opportunity for Lazada
with large discount programs.

c. Socio factor

According to the latest census data, Vietnam is the worlds 13th-most-

populous country, and the eighth-most-populous Asian country, with
approximately 87.84 million people, of which the Viet or Kinh ethnic group
constituted nearly 85.8% of the population; and 53 ethnic minority groups
constituted the rest. This means that Vietnam has hugely potential
consuming power.

Moreover, Vietnam is also a young country when the medium age is only
29.2 years old. Middle and Upper Income class increase. Because young
and rich people are keen on discovering and trying out new things, the
service of Lazada are very likely to be caught on.

15 | P a g e
 d. Technology

In terms of technology, Viet Nam is a rapidly developing country. Internet,

mobile internet, smartphone and payment system has developed and
improved with high rate, which is very important base for Lazadas success.
Lazada can take advantages of this trend to develop smartphone
applications to promote sales and provide e-commerce retails with a
variety of products to Vietnamese customers.

2. Industry analysis
a. Threat of new entrants

It is not rather difficult for Lazada to take entrance to Vietnam market at

that time. Because e-commerce has not fully developed and popular in
Vietnam, therefore it is a perfect raw material to build e-commerce from.
Setting up a new e-commerce business in a country that is relatively new to
online shopping has both infrastructural as well as psychological
challenges. Vietnam market remains a lot of problems relating to payment
methods, the quality of goods and services, the variety of products and
fraud in shopping online. Therefore, building trust and educating customers
who are new to online shopping has to be Lazadas focus.

b. Bargaining power of suppliers

Lazada is a retail company, not a manufacturer, so that it is rather easy to

be allowed discount for products from the suppliers. The crucial thing is that
Lazada should ensure and maintain a good business relationship with major
partners for a variety of goods and the high quality of products to be able
to bring the greatest value to Vietnamese consumers.

c. Bargaining power of customers

Vietnamese customers have great capacity for comparing and evaluating

among online shopping websites to choose the best quality products with
competitive price. However, Vietnamese tend to care more about the low
price than the quality of goods, so that Lazada should focus on promotion
campaigns and discount policy to attract their customers.

16 | P a g e
d. Threat of substitute products

Almost online shopping companies in 2011 were not capable of taking

advantage of potential e-commerce market in Vietnam. The goods and
services providing remained many problems such as payment method, the
quality of products, fraud occurred in online shopping. Therefore, it is
necessary for Lazada to improve the trustworthiness and popularity for its
quality in payment and delivery method, so that Lazada can win every
customers trust and become their preference one-stop shopping
destination.

e. Rivalry among existing competitors

Vietnamese consumers got used to direct shopping for trials and

evaluation. Therefore, markets, supermarkets or department stores
outweighed online shopping websites. However, the development of
Internet, smartphone and payment systems (cash-on-delivery) creates a
new shopping trend online shopping which brings a convenient and time-
saving shopping channel to customers.

Moreover, to other online shopping websites such as vatgia.com, Zalora.vn,

Lazada can take advantage of high-performance e-commerce platform
and price policy to make sure it would remain competitive against them.

17 | P a g e
II. Internal analysis
1. International strategies

Lazada uses local adaptation strategy in order to adapt with different

countries in Southeast Asia with high pressures for local responsiveness.

Definition

Local adaptation is the practice of global branding and localized

adaptation to differences in local culture, legislation, etc. We researched
some references to gain a deep understanding of this strategy which is used
widely in marketing. In Innovative Marketing, Volume 3, Issue 4, 2007: The
fundamental basis of the adaptation school of thought, is that the marketer is
subject to a new set of macro-environmental factors, to different constraints
such as language, climate, race, topography, occupations, education,
taste, and to quite frequent conflicts resulting from different laws, cultures,
and societies.. (Czinkota and Ronkainen, 1998).

We also investigated Chron website to find out Multi-domestic Strategys

definition: A company that follows a multi-domestic strategy fits its products
to each country in which it does business. The product features are tailored
to the local domestic environment, taking into account different food
preferences, religious customs and other characteristics that define the
locality.

Case Study Lazada Vietnam

On entering in Vietnam market, Lazada has to face some challenges

because of the difference in Vietnamese behaviors to these of other
countries in Southeast Asia. In 12/2013, after two years of in-depth research
about Vietnamese taste and planning for distribution channel, Lazada
published its mission Lazada Building trust in Vietnamese customers.

The first challenge, many Vietnamese customers will not trust in the product
until they touch it as they feel unusual with online shopping and do not tend
to make credit payment. Moreover, at this time, several scandals in some
online shopping websites makes customer feel unsecured with e-commerce

18 | P a g e
 industry. To solve it, Lazada offers a safety payment method by which
customers will make payment in cash when their goods arrive. This kind of
method requires more sophistication from delivery partner. Customers even
choose whether they buy the product or not. It also provides refund policy in
30 days after receiving the product.

The second challenge is establishing a professional delivery system across the

country. Lazada has to build and manage well its delivery partners, who
have responsibility to deliver on time and receive payment in cash from
customers.

2. Business strategies
a. Corporate-level strategy

Corporate-level strategy guides the organization as a whole. It is

undeniable that the type of international corporate strategy selected for
the firm is one of the most important factors to help protect the weaker
countries from losing market share and the power of other stronger
countries. Each firm, in the period of internalization, would choose the
suitable strategies for them. In particular, Lazada is supposed to have some
essential strategies needed to emphasize as follows:

Lazada focuses on geographic diversification. With 6 branches operating in

6 countries, Lazada is now the fastest-developing online retail system in
Asian. According to the final report 2013, it is the only foreign e-commerce
website ranking in top 5 Vietnam retail websites which have the highest
access level. About the market share, Lazada, in top 10 ecommerce
websites in Vietnam, currently ranks the first, accounting for 30% of the
market share, following by Chodientu.vn 29%, and Vatgia.com 15%.

International corporate strategy used by Lazada, we believe, is Multi-

domestic strategy by which companies try to achieve maximum local
responsiveness by customizing both their product offering and marketing
strategy to match different national conditions. Lazada has been providing
Vietnamese customers with products of many well-known brands such as:
Apple, Edugame, Canon, Fujifilm, Glasslock, Kova, Samsung, Sony, etc. With

19 | P a g e
the selected and reputable products, Lazada brings the safe , convenient
and joyful way to go online shopping for customers with a range of
electronics, housewares , kid toys and sport tools . It has been known that
the lists of Lazadas product focuses on luxury items that aim at high-
income people, HOWEVER, from now on, it is decided to extend the class of
customer and satisfy the demand of any people. It is making much effort to
give the best service to customers by the way of various factoring method,
free product return, so forth.

Lazada always have many activities to attract clients such as: Street
Ambassador of Lazada instructing customers how to make online
payment effectively, vouchers for any bills more than 600,000VND, etc. It
can be seen that Lazada has spent much money on advertising itself and
boosting customer satisfaction and retention.

International Corporate Level Strategy

20 | P a g e
b. Business-level strategy

Unique features:

Image of prestige or status

Lazada has applied the "Differentiation Strategy" in its business level
strategy. What they did to make customers perceive that they are
different is that they give good quality service, good bargain for their
prices and sometimes mark down some prices of original products for
the customers to save money giving them the popularity that they are
so widely acclaimed for.
In an interview, Mr. Christopher Baselin , CEO and founder of Lazada
Vietnam, revealed the desire that it will provide the 5-10% lower price
than competitors.
Also, unlike E-Bay that only uses credit cards and Paypal as their source
for transacting with clients, Lazada offers a wide variety of payment
methods like using debit cards, cash on delivery and credit card
installments which not many online shopping websites offer for their
clients in Vietnam. By doing these modes of payments, customers can
be assured of warranties and return policies thus minimizing the risk for
products that are not in good condition and customers giving bad
reviews about the organization.

Superior quality:

What makes this different from their competitors is that all products,
which are brand new, have gone through quality control unlike in E-
Bay.vn, that you rely on photos to assure that their products are in good
condition when the seller tells you that their product is in good shape.
Customers perceive them as being superior because they know that
the products that Lazada offers range from widely known items to items
that you don't come across in malls everyday, giving them an edge in
the online business market.

21 | P a g e
 Advantages: Developing differentiation strategy enables Lazada to
achieve some safeguards

Competitors: Lazada can defend against their competitors using

their differentiated services such as payment method and
preferential policies

Buyers: Its reputation gained from advertising strategy and good

customer services could keep the current customers and attract
many other people.

Substitutes: Brand loyalty to differentiated products would help to

reduce customers testing new products and services or switching
to other ecommerce website like Ebay, Enbac,

Risks: Other ecommerce websites have their own strength and Lazada has
to improve and develop continuously to keep pace with them.

3. Modes of market entry

a. Timing of entry

(Source: World Bank)

In March 2012, Lazada Group decided to do business in Vietnam because

they have foreseen the potential profitability of Vietnam market. To be
more specific, at the end of year 2011, GDP growth rate of Vietnam
experienced a slight increase, more than 5%.

22 | P a g e
 With the population of more than 90 million (ranked 13th all over the world),
Vietnam possesses a huge advantage in the labor resource.

In addition, at the time of Lazada entry, e-commerce has just been a new
market in Vietnam, which is a potential market for Lazada to invest in.

b. Scale of entry

At the beginning, Lazada focused on developing in Ho Chi Minh City

market to have time adapting to the market and reduce exposure risk.
Then, after a period of operations, Lazada tended to expand its scale by
setting up new office and warehouse in Hanoi. Lazada aimed at addressing
new market opportunities by fostering and growing partnerships base with
Hanoi sellers, understanding and adapting to regional market as well as
ensuring best quality across the country.

International entry mode

The international entry mode that Lazada applied when going

internationally is wholly owned subsidiary which operates independently of
its parent company, with its own senior management structure, products
and clients, rather than as integrated division or unit of the parent
company (ehow.com).

This allows Lazada Group to control tightly the operations, experience

Vietnam market, expand the scale of economies without risk of losing
technology. However, Lazada Group has to bear high risk and cost if
occurring.

4. Performance

After three years of operation, Lazada Vietnam has emerged as the best
performer among e-commerce websites in Vietnam, with its 2014 revenue
jumping five times over a year earlier and exceeding the average level on
the market. This is a leading e-commerce service tailoring the shopping
needs of customers with 300,000 products from more than 1000 brands.

23 | P a g e
Pioneering e-commerce in the region, Lazada is the only one which is voted
as trustworthy brand in Vietnam 2014.

According to recent research of Alexa.com Actionable analytic for the

web, Lazada is ranked in the list of leading B2C e-commerce websites in
Southeast Asia.

(Source: comScore media metric)

In terms of market leading mobile platform, Lazada is ranked among top 4

shopping applications in Google Play and featured as Best New App by
Apple. On 26th March 2015, Lazada is ranked 1st in shopping list of mobile
apps on Android and iOS and there are over 1 million application downloads
up to now. Only after 9 months from its operations, did Lazada.vn have more
than 23 million visits to the website.

Referring to report of the year end 2013 of comScore, Lazada is the only
international brand among the Top 5 retail websites in Vietnam with more
than 2,3 million daily visits.

24 | P a g e
 DAILY VISITS (MILLION)
7
6.3

3
2.3 2.2
1.9
2 1.7

0
Vatgia.com Lazada.vn 5giay.vn enbac.vn thegioididong.com

According to the Vietnam E-commerce and Information Technology Agency

under Ministry of Industry and Trade, the websites ranked first among 216 e-
commerce sites by revenue in 2014, and held 36% market share, followed by
sendo.vn with 14.4%, zaloza.vn with 7.2%, tiki.vn with 5.4% and ebay.vn with
3.6%. In 2014, Lazada Group announced it had attracted 200 million euros in
investment capital from major corporations in the world, including
Singapores Temasek, to boost operations in six ASEAN markets Indonesia,
Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Moreover, Lazada has created new cooperation relationship with famous

brands such as FPT, Lingo, Sony, Phillips, Samsonite and other major brands to
provide customers with a variety of goods and to stimulate the development
of e-Commerce market in Vietnam; strategic corporation with trustworthy
partners such as MasterCard, Huggies, Luminarc, Bosch as well as Citibank,
TPBank to provide products with competitive price compared with others.

25 | P a g e
PART III: CONCLUSION
Having three-year operation in Vietnam, Lazada Vietnam has gained many
significant achievements: 2nd ranking in Vietnam online retailing with 22%
market share (after ChoDienTu 29%) and be predicted to be a king of Vietnam
B2C e-commerce market. In fact, due to high expenditure on marketing and
operation, Lazada has not gain profit which may last in several years. However,
its target in Vietnam is increasing its market share, revenue and brand
awareness, not maximizing profit.

Through analysis of Lazadas international strategies in the specific market of

Vietnam, we can gain valuable knowledge and experience, especially about
the market knowledge of the manager of Lazada in a potential market as
Vietnam. The internet in Vietnam is changing so fast, and it is not only the
chances but also the challenges for the managers of Lazada to improve their
strategy. Although the number of orders and visits in the website are increasing,
Lazada still has to overcome the bad reputation problems.

In the forthcoming future, Lazada can improve and strengthen its customers
experience by conducting more behavior research to have customer insight,
following appropriate marketing strategies and applying a stricter and more
effective management policy. For example, it can build a community where
people can give or receive advice from other customers in choosing goods.

We hereby would like to express our deepest gratitude for your direction and
constant support during the making of this assignment.

26 | P a g e
REFERENCES
1. Charles Hill - Gareth Jones, 2008, Essentials of Strategic Management, 2nd
edition

2. Rocket Internet, 2015, Lazada Largest eCommerce Platform in South East

Asia, Rocket Internet - 2014 Annual Results Presentation

3. Demetris Vrontis (Cyprus), Alkis Thrassou (Cyprus), 2007, Adaptation vs.

standardization in international marketing the country-of-origin effect,
Innovative Marketing, Volume 3, Issue 4

4. Will Greene, 2014, E-commerce in Southeast Asia: Opportunities and

Challenges for Continued Growth in 2014, Tigermine Ventures
http://www.tigermine.com/2014/01/16/e-commerce-southeast-asia-
opportunities-challenges-growth-2014/

5. Edward Barbour-Lacey, 2014, Vietnam Online Understanding Vietnams E-

commerce Market, Vietnam Briefting
http://www.vietnam-briefing.com/news/vietnam-online-understanding-
vietnams-e-commerce-market.html/

6. Terence Lee, 2013, Lazada is now king of Vietnams B2C e-commerce

market, but its sad that competitors are dying, Tech in Asia
https://www.techinasia.com/lazada-king-vietnams-b2c-ecommerce-
market-sad-competitors-dying/

7. Vuong Nguyen, 2014, CEO Lazada Vit Nam: Mua sm bng Smartphone l
xu hng ca tng lai, an interview with Alexandre Dardy CEO Lazada
Vietnam, Cafebiz
http://cafebiz.vn/thi-truong/ceo-lazada-viet-nam-mua-sam-bang-
smartphone-la-xu-huong-cua-tuong-lai-20141026232149906.chn

27 | P a g e
8. Lazada source 2014, Lazada at the forefront of VN e-commerce, says
CEO, Viet Nam News, BizHub
http://bizhub.vn/business-insight/8739/lazada-at-the-forefront-of-vn-e-
commerce-says-ceo.html

9. Alexa.com, Site overview Lazada.vn,

http://www.alexa.com/siteinfo/lazada.vn

10. Hung Le, 2015, Lazada best performer among e-commerce sites, The
Saigon Times
http://english.thesaigontimes.vn/40011/Lazada-best-performer-among-e-
commerce-sites.html

11. Br. Anthony Ba, 2011, SJ Alberto Hurtado Center, P.E.S.T.L.E REPORT ON
VIET NAM 2011,
http://sjapc.net/sites/default/files/vietnam_general_report_2011-_english.pdf

12. Dr. Alan Pham, 2011, Vietnam Macro Issues in 2011, VinaCapital Investor
Update Ho Chi Minh City, Vietnam
http://www.vinacapital.com/userfiles/file/Investor_Update_2011_Macro.pdf

13. The World Bank Data

28 | P a g e