Why is Lazada the first stop when Tmall brands expand into Southeast Asia?

Author | Peng Qian
Editor | Qiao Qian

The Southeast Asian market is a fiercely competitive arena for e-commerce companies. With Shopee and Lazada engaged in intense battles in the front, and TikTok making heavy investments and Temu testing the waters later, how can one break through the competition?

Lazada's current answer is: Leverage the organizational dividends brought by Alibaba's e-commerce business group integrating domestic and international operations, invest unprecedented energy and resources, and make "brandization" the top strategy.

This Southeast Asian local e-commerce platform with a 13-year history became one of the first initiators of "Harbolnas" (Indonesia's Global Online Shopping Day) in its first year of establishment, and the products of local brand merchants participating in the big promotion accounted for more than half. After being officially acquired by Alibaba in 2018, Lazada launched more brand-related layouts. It not only introduced the "Double 11 Carnival" invented by Tmall in a hurry but also launched LazMall, similar to Tmall Mall, in 2018.

Since then, LazMall has continuously introduced local brands and international big brands. Local brands include Wardah (an Indonesian beauty brand) under the Paragon Group, and international brands include L'Oréal, Swiss, Skechers, MamyPoko (Japanese diapers), KonigPilsener (German beer), Daniel Wellington (Swiss watches), etc. The official says that LazMall is the largest online brand mall in Southeast Asia.

Three years ago, Alibaba International established an organizational form that combines horizontal and vertical development (the global cross - border market is led by AliExpress horizontally, and the local e - commerce is led by Lazada vertically), and also clarified a new strategic direction - when it comes to the Lazada business, it is the firm "brandization".

This strategy not only gives full play to its own advantages but is also the result of observing market changes. According to the data in the "2025 Southeast Asian E - commerce Report", Lazada has the highest proportion of middle - class users among Southeast Asian e - commerce platforms. However, based on the scale of 150 million and continuously expanding middle - class users, there is still significant room for growth. Southeast Asian middle - class consumers who pursue quality and branded products are becoming the mainstream user group of Lazada. Lazada defines them as "quality users".

Based on these changes, Wei Meng (nickname: Qiancheng), the president of Lazada, regards the "system - level" connection with Tmall as an important current strategy. Qiancheng joined Alibaba in 2009. In the early stage, she focused on Taobao user products and operations, and later her responsibilities expanded to the fast - moving consumer goods and import industries. She has rich product experience and synergistic advantages in the large e - commerce segment. She came to Lazada in 2022.

The "system - level" connection between Lazada and Tmall means that the inventory, marketing, and prices of a merchant's Tmall store can be "mirrored with one click" to the corresponding Lazada store, helping Tmall merchants achieve "lightweight" overseas expansion at low cost. While doing well in the domestic market, they can simultaneously conduct cross - border business in Southeast Asia. The first batch of Tmall brands to settle in Lazada under this project include AfterShokz, Bananain, babycare, Philips, Lock&Lock, etc.

This is also the organizational integration dividend brought to Lazada by the establishment of Alibaba's e - commerce business group. Qiancheng told 36Kr, "In the past, what we did in brand building was not fundamentally different from other external platforms. We needed to conduct business development (BD) with merchants point - to - point. Now, through the connection of system resources, we can communicate with the industry managers of Tmall and become part of their merchant operation plan."

The era of Chinese brands going global has arrived. From the perspective of an e - commerce platform, Lazada also believes that there is more than just the path of low - price competition. "Brandization and quality improvement" are one of the important directions for going global today. The success of consumer brands and hardware brands such as Pop Mart, Insta360, Anker, and Ugreen going global has proven this point.

Yesterday, 36Kr met Qiancheng in Area C of the Xixi Park in Hangzhou. We talked with her about the history, current situation, and follow - up plans of Lazada's "brandization" strategy, as well as how to help merchants more accurately find business opportunities and do the right things in the new golden era of Chinese brands going global.

She also revealed to 36Kr that this year on Double 11, Lazada will conduct the first assessment of the preliminary results of the "brandization" strategy and evaluate its performance among merchants and users because "the prices are good during Double 11, and the scale of merchant recruitment has also increased."

The following is the dialogue between 36Kr and Qiancheng (edited and revised):

The "brandization" strategy is clearer, and Tmall brands will bring the greatest increment

36Kr: When did the "brandization" strategy become clearer and more resolute?

Qiancheng: It's hard to pinpoint a specific time point. "Brandization" has been something Lazada has been doing since its establishment. The current strategic choice has been gradually strengthened through repeated trial - and - error and internal discussions. From the perspective of industry development, Chinese brands going global to Southeast Asia can see new market opportunities. It is indeed time to elevate this matter to a strategic level for discussion. Lazada is still in the process of doing this and is far from completion.

36Kr: What progress do you think has been made?

Qiancheng: Southeast Asia has a population of 700 million, and the middle - class population has increased sharply to 150 million. Their consumption power is comparable to that of the middle class in China. Currently, Lazada has the highest average order value, the highest penetration rate of brand users, and the highest growth rate of brand transaction share among Southeast Asian e - commerce platforms.

36Kr: Lazada actually started brand layout early. What's the special significance of connecting with Tmall?

Qiancheng: In the past, Lazada indeed focused more on local operations, aiming to operate local brands and international brands well. At that time, the brand resources and team insights were all oriented in this direction, and it was reasonable to make it the main line. After the integration of the large e - commerce segment, the systematic connection with the underlying system of Tmall is indeed one of the dividends brought by the organization.

36Kr: What specific dividends are there?

Qiancheng: Through the system - level connection between Lazada and Tmall, a Tmall store can be directly mirrored to Lazada. One advantage is the integration of inventory. All product details are intelligently translated by AI, and other aspects such as pricing, customer service, and logistics will be resolved step by step. Another advantage is the synchronization of marketing prices, allowing overseas consumers to experience the price competitiveness of Tmall and recognize many good Tmall brands in batches.

36Kr: If there was no integration, how much more difficult would it be to do this?

Qiancheng: In the past, our main method of brand building was to conduct BD with merchants point - to - point. But now we are carrying out large - scale operations. When Tmall industry managers operate Tmall merchants, they will communicate with Lazada together, and Lazada has become an important part of their plan.

36Kr: Do we have an expected proportion target for the contribution of Tmall brands to the platform's growth?

Qiancheng: I generally don't like to talk about proportions. Lazada regards Tmall brands as an incremental supply. We hope that they can provide the greatest increment to the Lazada platform in the future. We operate both local and cross - border businesses, all centered around one main line - brands. Essentially, we still need to return to the demands of consumers. We hope to help local brands continue to operate well on the Lazada platform and bring in more global brands with business opportunities to provide high - quality supply to local consumers.

36Kr: Alibaba's overseas e - commerce business is generally on the rise. Both Lazada and AliExpress are pursuing brandization. What are the differences between them?

Qiancheng: Brandization is definitely a global consumption trend, and there is such an understanding and awareness within Alibaba's international business segment. However, first of all, there are differences in market and regional positioning. Lazada is a local e - commerce platform deeply rooted in Southeast Asia. For Tmall merchants who want to expand their business in Southeast Asia, this is a clear incremental business position. Secondly, there are also differences in the design of the business model. We call this model Lazada Brand Co - Pilot. The biggest feature of this model is that the brand merchants always have the main control right over the operation of their overseas stores; while Lazada's role is to act as the co - pilot to ensure a more stable, faster, and more intelligent overseas expansion for merchants, responsible for providing merchants with local insights and intelligent full - link empowerment.

36Kr: What is Lazada's overall goal at this stage?

Qiancheng: Currently, all the series of business improvements made by Lazada have met expectations. Next, the main task is to implement the brand upgrade strategy well and enter a state where the platform achieves targeted growth around the new upgrade strategy.

There are greater opportunities for short - tail categories to go global in the short term, and in the long term, it is necessary to focus on localization

36Kr: From the platform's perspective, which categories have great opportunities in this wave of going global?

Qiancheng: Even for some very small pain points in the consumption trend, the local supply is actually insufficient, and there is a high degree of product shortage. This is the clear business opportunity we have discovered. For example, consumer electronics brands are in high demand in Southeast Asia. Local consumers like sports and outdoor activities. We have introduced the cost - effective Insta360 waterproof panoramic camera and the portable and cost - effective handheld fan from Jisu, which are very popular.

Another example is that in China, the focus of beauty products is more on color numbers, with the demand for "whitening and reducing yellowness", while the core demand for beauty products in Southeast Asia is "long - lasting makeup" because of the hot and humid weather. A loose powder called "Black Magnetic" from Caror Natural, which has a good reputation in China, is also selling well in the Southeast Asian market.

36Kr: Which categories will be prioritized in the early stage?

Qiancheng: In the early stage of the project, we are still running through the links. There will be more short - tail industries because they are more standardized, the links can be quickly established, and the single - product sales can be easily scaled up, such as consumer electronics and beauty products. For long - tail products like clothing, there is a high demand for returns and exchanges, and accurate product selection is required. The entire operation process is more difficult and the links are longer. In the early stage, we introduced some corresponding domestic and international categories, and in the future, we will provide more personalized services according to the wishes and needs of merchants.

36Kr: Brands like Pop Mart that focus on "emotional value" have been very prominent in this wave of going global. Can we observe a similar trend on Lazada? Do you have targeted operations for such brands?

Qiancheng: Lazada focuses on serving "quality users" first, and they are also willing to pay for products that provide emotional consumption like Pop Mart. We have a brand IP called "LazRun" - every year, we organize consumers to participate in a 5 - kilometer fun run. This year, we cooperated with Pop Mart. Participants in the event will wear Pop Mart products, and we will also distribute Pop Mart prizes after the event. There will be interactive links with the brand during the process, and the effect is very good. Lazada's local resources help us better meet the brand's marketing, promotion, and other requirements in the local area, and help the brand better establish an emotional connection with consumers.

36Kr: Chinese brands going global online face difficulties in the supply chain and warehousing and distribution. What problems can Lazada help them solve?

Qiancheng: We have different models for different brands. For example, Tmall merchants participating in the "One - click Lightweight Overseas Expansion" can directly mirror a Lazada store identical to their Tmall store. Merchants only need to ship their goods to the domestic central warehouse, and Lazada will help the merchants consolidate orders to the local central warehouse and deliver the products to consumers through official logistics partners. Some merchants also choose the local inventory model. For some brand merchants with overseas logistics capabilities, we can also help diagnose their needs and help them participate in local operations more efficiently.

36Kr: What are the generational differences between this wave of brand going global and the past?

Qiancheng: The brand power and product power of Chinese brands are reflected in different industries and tracks, which have gone through several eras. In the past, it was mainly high - cost - effective light industrial products. With the changes of the times, there have been some high - end electronic devices, beauty and skincare products, and trendy toy IPs that provide emotional value. For Lazada, introducing these good Chinese brands is just the first step. If a brand wants to go global in the long run, it must develop specific products for the local market, make customization, and combine in - depth supply chain and local operations, which will become a more complex and customized model. Many brands are not unwilling to take this step, but they think the cost of taking the first step is too high.