Fast increasing online groceries demand and the high growth potential of Vietnamese e-commerce market are factors driving Chinese giant Alibaba’s investment in Vietnam.
A consortium led by the Chinese e-commerce giant invested $400M in The CrownX, a subsidiary of conglomerate Masan Group that operates retail chain WinMart.
The investment was seen as a chance for Lazada, Alibaba’s e-commerce platform, to create a business relationship with WinMart for the online groceries business, Singapore-based technology media company Tech in Asia said.
Kenny Ho, Head of Investment for Southeast Asia at Alibaba, said the combination of Alibaba’s online retail expertise, Lazada’s e-commerce platform in Vietnam and Masan’s leading offline network will be a strong catalyst for modernising Vietnam’s retail landscape.
WinMart will become the preferred grocery retailer on Lazada, while its outlets will be used as pick-up points for online orders, Ho said.
The investment by Alibaba indicates that the company is tapping into a pandemic-fuelled growth in the demand for online groceries, Tech in Asia reported.
