Under the partnership, Cafe24, which has expanded its presence in China and the U.S., aims to support Korean vendors to sell their products in the Southeast Asian market through the wide distribution network of Lazada.
The Southeast Asian market is home to over 600 million consumers and a rapidly growing middle class. But a lack of logistics and payments infrastructure has slowed the growth of online shopping that still makes just 1 percent of total retail sales in the region.
|From left: Koh Kyung-mo, creative economy planning director of the Ministry of Science, ICT and Future Planning, Lazada Group CEO Maximilian Bittner and Cafe24 CEO Lee Jae-seok pose before a business seminar at a Seoul hotel on Thursday. (Cafe24)|
Lazada, established in 2012, has made diverse localization efforts over the past years, including the latest “cash-on-delivery” service for local consumers who rarely use credit cards.
Now the company is the No. 1 player in five key countries ― Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
With its new partnership with Cafe24, Lazada especially pins high hopes on the popularity of K-pop in the region that has boosted the demand for Korean fashion and cosmetics products as well as mobile devices and home appliances.
“Selling products on Lazada’s websites is the best way to start your business in Southeast Asia,” Cafe24 CEO Lee Jae-seok said at a business seminar Thursday for local vendors.
“Cafe24 and Lazada will closely work together to help Korean businesses make inroads into the growing Southeast Asian market.”
By Lee Ji-yoon (email@example.com)