As the leader of one of the leading e-commerce platforms, Mr. Victor Wu often observes the market by… shopping directly. He realizes that the direct sales service in Vietnam is much better than most of Lazada's other markets.

“When you go to one of the mobile phone chains, as soon as you arrive at the store, an employee will immediately come to ask you what you need, what type you like, how much you expect to spend, what features you value… then they will recommend you the product that they believe will be the best choice for your needs. Then, if you don’t know how to use a smartphone, they will guide you step by step, install applications, cards, everything” - Lazada Vietnam leader observed and evaluated, this is very rare in other countries. It’s not that Vietnamese people don’t know how to use these services, but the problem is the experience.

“Similarly, for e-commerce, it is not about providing cheaper goods that will sell, but the key issue is also about service, about quality. When customers come to e-commerce, they will no longer have that “hands-on” support, so they will always need to have an e-commerce platform that understands them, can personalize their experiences at every touchpoint, helping them make decisions easier and shop more happily. At Lazada, we do not want to just sell to customers once, we need to be friends with customers, to understand them, to bring them a better experience, from there they will trust, and be willing to come back many times, using Lazada as a platform that brings real value to them”, Mr. Victor emphasized.

Mr. Victor Wu, CEO of Lazada Vietnam

As a pioneer, we have our own advantages!

After more than a decade of e-commerce development in Vietnam, the competition in the market is still fierce and until now there are still new competitors appearing. They show great determination for the Vietnamese market and their debuts are quite remarkable. Meanwhile, the message that Lazada has conveyed over the years is relatively "friendly". Perhaps in a market like e-commerce, people like to see more "fighting" and more fierce players?

Each “player” has its own personality and color, and I think that diversity makes the Vietnamese e-commerce market dynamic and full of development potential.

There are always opportunities for every business. And for Lazada, we are a constantly evolving company, we have a clear strategy. As a pioneer in this market for the past 10 years, we know our strengths very well. We know what to do, and what not to do.

Recently, we have focused on a number of goals. First, we continue to invest in technology, and invest to improve our logistics capabilities. At the same time, we have very clear research to develop product categories, and to support quality sellers, quality products can develop on our platform.

At the same time, we always keep a long-term vision on the market's growth potential. It's not just a story of how much market share we get, but we focus more on sustainability for development.

We have achieved positive EBITDA results by July 2024; this milestone not only strengthens our confidence among investors, but also strengthens the confidence of all stakeholders in the e-commerce ecosystem.

CEO Lazada Vietnam Victor Wu

As you know, in July 2024 this year. We have achieved positive results in terms of EBITDA, which not only strengthens our confidence in front of investors, but also strengthens the confidence of all participants in the e-commerce and online business ecosystem. We believe that it is necessary to focus on sustainability, continue to invest in the right places, to enhance the customer experience and always aim for the long term.

Based on my experience, I believe that challenges always come with opportunities. Lazada has been in the market for more than 10 years, we have our own advantages, as a technology leader, and we have also built a solid capacity in logistics infrastructure, while developing a very diverse range of products.

And based on more than 10 years of experience, we have established a very comprehensive internal ecosystem, to confidently provide the best experience through our services to customers.

Lazada has always emphasized its advantage as a technology pioneer. But are technological innovations really the deciding factor in retaining users?

I absolutely believe that.

You know, technology is a very broad field. And when we develop technology with customers at the center, those technological innovations will be more effective in improving the user experience, thereby helping to attract more customers. Over the past time, we have developed a lot of modern technologies in our system, including logistics, platform operations, as well as empowering sellers and end users.

Speaking specifically about AI and AR, at Lazada, we have deployed a lot of technology on our application since 2019, 2020. If you are a Lazada customer, when you enter our application, you will see many AI application features to support customers to easily search, choose products, pay and track the journey of each order in real time.

In October, we also conducted a survey with Kantar of 6,000 customers in 6 markets and released the first report on “AI Applications in Southeast Asia E-commerce”. The survey showed very positive results. Many customers said that when shopping at Lazada, they enjoy the benefits of AI tools, they are willing to use the current solutions we provide and they also expect us to spend more on technology tools.

But the technology in e-commerce is probably not difficult for competitors to copy?

You know, investing in technology, especially AI, requires huge resources. But I think that as a large enterprise, not only in the Vietnamese market but also in the global market, we have the responsibility to lead the development of technology.

Technology is easy to copy, but how to come up with effective applications based on technology is another problem. And this competition will push us to always innovate to develop.

CEO Lazada Vietnam Victor Wu

And I think other players, not just Lazada, can take advantage of the platform from the development of technology, as long as we can create useful values, then customers, communities and the whole economy will all benefit and grow.

So, yes, technology is easy to copy, but how to come up with effective applications based on technology is another problem. And this competition will push us to always innovate to develop.

Will the "money burning" race last forever?

Some experts in the e-commerce field expect that after restructuring and optimizing costs, e-commerce companies, such as Lazada and its competitors, can be profitable. But with the emergence of new competitors, will businesses return to the "money-burning" race?

Yes, we have seen many new businesses in the market, some have come, some have gone. But I believe that the new “players” also have their own challenges.

Nowadays, customers do not only want to buy cheap and easy shopping, but they want to have a real experience, especially in the Vietnamese market, customers want value that does not only come from the product. Customers like branded products, quality, fast delivery, after-sales service, fast and stable returns and refunds. These cannot be built in a day or two.

To be honest, we are always open to any new “players”, as healthy competition will bring many opportunities for growth. But first, they will have to face and solve their own challenges. Over the past 10 years, we have clearly seen the opportunities, but also seen some risks that come with it. You can grow very fast in the near future at all costs, or you can stabilize your fundamentals first, and then prepare for the future of rapid growth.

You can grow very quickly, or you can stabilize your fundamentals first and prepare for rapid growth in the future.

Lazada CEO Victor Wu

In the e-commerce market, there are many businesses that grow very quickly, but there are also many cases of failure. The common method used to be to attract customers through promotional programs. However, consumers are becoming more sophisticated: today they can choose to buy at a place with good deals, but tomorrow they are ready to switch to another unit if that place offers more attractive policies.

Ultimately, I believe that all market participants will move towards stability. All need to control risks, and continuously improve the quality of products and services. The appearance of new faces in the market is certainly worth paying attention to, but risks always exist, no matter which business or player in the market.

How will Lazada hone its competitive advantages to stand firm in the market?

We have always defined ourselves as a “glocal” business*. Localization is our main strategy. You know, in our platform, the majority of the supply is still local supply. We are committed to the localization strategy, trying to support local suppliers to grow.

Our differentiation is not only in technology, but our logistics network today not only serves Lazada, but also provides services to other businesses, to domestic brands, expanding beyond our platform. They respond very well to the quality of service, efficiency and cost is also very competitive. This is also one of our advantages, and this advantage is not easy to copy.

Over the past 10 years, we have gained a lot of experience. We understand the needs of our customers in our app. We do some surveys with customers right after their purchase, looking for feedback on what Lazada needs to improve, and recently we have received very, very positive feedback from customers, that they enjoy their shopping journey on Lazada.

So, based on my understanding, today’s e-commerce is not just about easy shopping, but also about finding ways to attract and engage with customers, to build relationships with them. So, I think with the things I mentioned above, the advantages and the differences that we have built, we are very confident in focusing on our long-term strategy, to provide services and empower sellers and brands.

The final destination of the e-commerce race

The idea of ​​a single winner is always appealing to the public, will this happen with the Vietnamese e-commerce market? That one player is strong enough to take the majority of the market share?

Maybe, maybe not. But this is temporal.

Let me give you an example. China is a very developed e-commerce market. You know, at first Alibaba was the leader, but over time, new players came in, and they competed with each other, and they also promoted each other. In the past few years, although it was really difficult to do business, Alibaba still regained its market share, and its position.

For us, we expect healthy competition. This is not only for the benefit of any single player, but also for the benefit of both buyers and sellers. I expect a three-legged stool, so it is more balanced.

No one can always have the upper hand. We accept the competition. And I think the important thing for us to stick to is to stick to our goal of serving our customers. Regardless of the changes, as long as we stick to our strategy, we are very confident that we will still be one of the leading companies in the market.

If not the ultimate winner, what will be the destination of development in the e-commerce market?

I think the goal of this competition is that as a participant, we have a responsibility, together with all other businesses, to build an overall e-commerce ecosystem, including a few key units that are motivated to develop their own technology to improve operations, always providing better services to customers. No one will benefit from a monopoly market, including sellers and buyers."

The ecosystem is competitive, there is rivalry, to optimize costs, to improve operational efficiency. And the ecosystem is not only beneficial from one perspective, not only beneficial for customers but also beneficial for suppliers, especially domestic manufacturers and local brands.

The ecosystem is competitive, there is rivalry, to optimize costs, to improve operational efficiency. And the ecosystem is not only beneficial from one perspective, not only beneficial for customers but also beneficial for suppliers, especially domestic manufacturers and local businesses.

Lazada CEO Victor Wu

The ecosystem also welcomes any new players to come in to promote some new innovations, also promote the development of existing players, at the same time the ecosystem also benefits the personnel in the industry and supports the development of technology talents. The ecosystem can benefit the whole society, the economy. My wish is that all parties can work together to grow together.

Last question, about you personally, after a long journey working in this field, what does e-commerce mean to you?

One quote that always motivates me is: A true hero is someone who is able to see the reality of the world and also has the motivation and energy to make it better.

We've been making a lot of changes internally lately. We're investing a lot of resources and people in technology, developing new solutions. And we're always putting resources into preparing for the future. You know, this is a fast-paced industry, so we need to always be thinking about preparing for the future, not just for today.

I really enjoy this journey. It's challenging but fun. And I also feel that our value is not about the business, but also the feedback, the voice from the seller, from the customer, we can create value.

I also often talk to my colleagues here, that my motivation is only one: to create value. As long as I am valuable to the company, to the team, supporting sellers and buyers together, I will enjoy, and motivate myself.

Thanks for sharing!

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* The concept of “glocal” is a combination of “global” and “local”, which refers to the application and integration of global thinking and solutions into each specific local market and context.