Alibaba trying to be a real fighter against Amazon

Alibaba vs. Amazon: Why Lazada receives $ 2 billion

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In the fight against Amazon pushes the Chinese platform Alibaba the trading platform Lazada: Another $ 2 billion receives the startup, which was once made big by Rocket Internet.

Alibaba intends to invest another two billion dollars in the e-commerce company Lazada. This was announced by Alibaba boss Jack Ma on Monday. Ma doubled his investment in the Southeast Asian Amazon clone that was once made famous by Rocket Internet, which was just founded in 2012.

At the same time Jack Ma has made clear with this step, the importance for him the markets of Southeast Asia and that you want to offer the US rival Amazon, who wants to gain market share here in the future, as few options. He has been surprisingly cautious and has opened his own website in the city state of Singapore. Amazon wants to develop additional markets such as Vietnam, apparently with regional partners. However, the focus is apparently on the Indian market, where Amazon has planned investments of 5.5 billion dollars.

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Alibaba has royally paid Rocket Internet for Lazada

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The countries of Southeast Asia are currently extremely attractive for e-commerce companies. The population has grown by 50 percent in the last 30 years, purchasing power continues to increase year by year, and online commerce is also very much in vogue, particularly due to the structures of local trade. Mobile phones are widely used, but there is still room for improvement in e-commerce compared to the developed markets of the West. According to a study by Frost & Sullivan, online retail revenues in Asian emerging markets such as Thailand, Indonesia, the Philippines, Singapore, Vietnam and Malaysia are expected to triple by 2021.

A market that seems equally attractive to e-commerce giants like Amazon, as well as to the Chinese top dog Alibaba, which already has a high level of brand awareness in the region. Alibaba wants to achieve this through Lazada, the company that the Chinese group has gradually bought from Rocket Internet. The last shares had Alibaba Rocket Internet bought at a fairytale price ($ 278 million for 8.9 percent of the shares), whereas Rocket Internet even at that time just has invested 18 million dollars. Bottom line, Rocket Internet has scaled its capital twentyfold here (at least for this part of the deal).

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