CJ O Shopping opens up a Korean section in LAZADA, the largest online mall in Southeast Asia
CJ O Shopping (CEO Heo Min-Heo) will open up a shop in LAZADA, the largest online mall in Southeast Asia, to expand sales of Korean goods.
CJ O Shopping plans to grow as the leading Korean goods distributor in the rapidly growing Southeast Asian online market by utilizing the network of LAZADA, which operates sites in six countries, including Malaysia.
The CJmall brand shop opens in the Southeast Asia's largest online mall
CJ O Shopping held an MOU signing ceremony at its Bangbae office in Seoul on Oct. 7th, in which Jin Jung-Yim, executive vice president of the Future Growth Division of CJ O Shopping and Stein Jakob Oeie, president of LAZADA Group, signed an MOU for opening the CJmall brand shop in the form of a "Shop in Shop" in LAZADA, a global online mall that is operated in six Southeast Asian countries.
LAZADA Group is an e-commerce company that was founded in Singapore in 2012, and Alibaba of China invested one billion dollars in the company in April 2016. LAZADA currently operates sites in six countries: Malaysia, Indonesia, Singapore, the Philippines, Thailand and Vietnam, with the company ranking first in the e-commerce markets in five out of the six countries.
"We chose LAZADA, the No.1 player in the market, as our partner to preemptively affirm the position as a Korean goods supplier in the rapidly-growing e-commerce market in Southeast Asia," explained CJ O Shopping regarding the signing of the MOU with LAZADA Group.
Based on a thorough localization strategy, CJ O Shopping will choose from Korean goods available on domestic home shopping channels and CJmall and sell Korean goods optimized for local consumers. As for product categories, the company plans to start with "Living" and "Beauty" and gradually expand to "Fashion" and "Accessories".
According to a report by Bain & Company that was released earlier this year, the size of the e-commerce market in Southeast Asia as of 2015 is approximately 6 billion dollars, 3% of the entire distribution market, exhibiting high growth potential.
Given that the market for direct online purchasing of Korean goods by local consumers in Southeast Asia is only in its infancy, CJ O Shopping also expects to preoccupy the market by entering LAZADA.
In particular, CJ O Shopping expects that the network and knowhow of CJ IMC, its subsidiary that has supplied Korean goods to countries in which it operates its TV home shopping business, will add synergy to this online business in Southeast Asia.
After reinforcing manpower and establishing essential systems, CJ O Shopping will commence its service one by one in six countries where LAZADA is operating, first in Malaysia from late this year at the earliest, then in Singapore and Vietnam.
"I am pleased that we will work with CJ O Shopping, which has built confidence in global customers through over a decade of overseas business," remarked Jakob Oeie, president of LAZADA Group, who was present at the MOU ceremony that was held on the Oct. 7th. "LAZADA has improved its shopping experience for our customers by providing various premium goods from all around the world, and this partnership with CJ O Shopping is also a part of this strategy."
Jin Jung-Yim, executive vice president of the Future Business Division of CJ O Shopping, said, "This MOU has enabled us to secure another reliable channel to supply goods made by Korean SMEs to the Southeast Asian market. Building on the entry into LAZADA, CJ O Shopping will strive to become the largest online Korean goods supplier in Southeast Asia."