Lazada Philippines to use AB Kinnevik’s investments to expand market, product selection

The Philippines is high on the priority list of online store Lazada when it comes to Swedish financial company AB Kinnevik’s $40-million investment in the retailer.

 

“The new funding will be used to fuel Lazada’s growth across the five countries [Indonesia, Malaysia, the Philippines, Thailand and Vietnam],” Lazada Philippines marketing brand officer Kyla Ortigas told GMA News Online. 

 

“Given the large market of the Philippines, our country will be given high priority in terms of fund allocation. 

 

On Tuesday, Southeast Asia’s online department store revealed AB Kinnevik’s $40 million placement in its German holding company following a similar investment by J.P. Morgan Asset Management.

 

The investment will fund Lazada’s product and market diversification, regional CEO Maximilian Bittner said in an e-mailed statement.

 

“In addition to capital, [Kinnevik] will provide us with invaluable strategic insight (into) operating in such markets,” Bittner added.

 

“The bulk of the funding will be used to build our product selection,” Ortigas noted in a separate e-mail message on Thursday.

 

“This will help us add hundreds of products every day, which will give our customers more options and encourage them to visit and purchase from our site every day,” Ortigas added.

 

In terms of market share within the group, she said Lazada Philippines is one of the leading countries in the region. 

 

“For us to establish credibility with our customers is the key and we are excited about our partnerships with all the major banks and payment institutions that help us provide a safe shopping environment,” Ortigas noted. 

 

In return, Lazada carries products made in the Philippines, particularly mobile phones, home and living items, fashion and home appliances. 

 

“We see it as our strict responsibility to contribute positively to the economy and the environment of the Philippines and sourcing locally produced items is an integral part of this strategy. We meet new suppliers and manufacturers every day to ensure that we continue to provide locally produced products,” Ortigas added.

 

Lazada Philippines plans to expand its product selection and use part of Kinnevik’s resources on regional marketing. 

 

The company said it was well received by online shoppers in Manila, Cebu, and Davao, prompting the Philippine unit to are cities outside Metro Manila.

 

It is also targeting overseas Filipinos who send items and gifts to their family in the Philippines. — Edgardo Tugade/VS, GMA News