Lazada Group CEO James Dong says it faces a similar operating environment as most e-commerce companies: One where inflationary pressure is growing amid slowing economies, reducing consumers’ appetite to spend freely. Nonetheless, Dong emphasises that it is focused on profitability and intends to grow the company sustainably over the next few years.
The leading e-commerce players have been grabbing headlines for the wrong reasons. Shopee, the e-commerce subsidiary of gaming company Sea, is undergoing significant cost-cutting to get its finances in order, be it from reportedly rescinding job offers, staff layoffs or forgoing salaries for top management. While the likes of Grab have signalled that growth comes at the expense of profitability, how long before these losses become a concern?
E-commerce platform Lazada seems unfettered by these developments and claims to have a plan in place. Never mind that they are bolstered by a parent company as big and profitable as Alibaba Group. Lazada says it has a better chance of sustaining its growth and eventually turning over a profit.
