Southeast Asia's leading online shopping platform Lazada is upbeat on e-commerce prospects in Malaysia, as the company enters a Digital Free Trade Zone (DFTZ) announced by China's e-commerce giant Alibaba and the Malaysian government.

Hans-Peter Ressel, CEO of Lazada Malaysia, said the Southeast Asian country has all the necessary enablers for e-commerce, including high penetration rate of Internet, smartphones, credit cards and a population highly active on social media.

Southeast Asia is still lagging far behind China in e-commerce, where online sales already account for more than 10 percent of total retail sales, but Ressel is confident on the potential in the region.

"China started their journey like 10 years earlier," he said, "We expect Malaysia and Southeast Asia to be there too, and it might not take 10 years, might be a little bit faster."

In 2016, Lazada Malaysia recorded the fastest growth in the Lazada group with more than 100 percent growth in terms of revenue, Ressel said, adding that it has seen even faster ‍growth so far this year partly thanks to an increasing loyal customer base.

Lazada Malaysia this week unveiled its own social commerce channel, Lazada TV, which featuring live videos including make-up tips, tech reviews, and collaborations with renowned brands.

Launched in March 2012, Lazada is Southeast Asia's leading online shopping and selling destination, with a presence in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Ressel praised the Malaysian government for its effort to develop e-commerce.

"Malaysia is at the forefront when it comes to government support in digital economy," he said.

In March, Alibaba group, which holds a controlling stake in Lazada, and the Malaysian government announced plans to develop a DFTZ in Malaysia.

During his recent trip to China, Malaysian Prime Minister Najib Razak visited Alibaba group in Hangzhou of Zhejiang Province. He wrote on his personal blog that he expected the DFTZ to create 60,000 jobs and to provide Malaysian small and medium enterprises with greater access to foreign markets.

It was announced that for the first phase of DFTZ, Alibaba's logistics platform Cainiao and Lazada will lead efforts to develop a regional fulfilment hub near the Kuala Lumpur International Airport.

"Within this year there will be the first phase rolled out, so far we are on track and I believe that a lot of exciting things are coming in the next couple of months," Ressel said.

The CEO said Lazada has received insights from Alibaba in its experience and development and was inspired by Alibaba's approach to empower sellers online.

"We know Southeast Asia, we are in this market and there are certain ways that we are doing things here," he said. "But obviously having such a big brother it can help you with certain things and it's very helpful for Lazada." 

(Source: Xinhua)