New Lazada CEO, Pierre Poignant is faced with a huge challenge following his appointment in December as he is expected to align the business and administrative models of his domain with that of the parent company, Alibaba.
Bloomberg noted that Poignant is among the very few Western experts who were able to enter the Chinese tech giant's higher powers. Spectators are also eager to see how he will handle the issue on Lazada and Alibaba's very different operational cultures.
While Lazada is a company that employs people from over 60 countries, Jack Ma is said to have founded Alibaba with a culture that sees high levels of competitiveness and pride among department leaders.
Aside from finding a way to put two different cultures together, Poignant also has to overcome competition challenges from Tokopedia and Shopee. The said retail providers offer various consumer-centered promotions. Lazada, for its part in the competition, has removed commission charges to help entice more sellers.
Still, the French CEO has pressure pouring on all sides. Founder and CEO of Blue Lotus Capital Advisors, Eric Wen noted, "They're under so much pressure." He added that during the last quarter of 2018, Lazada's overall sales growth saw a decline.
The slowdown has been attributed to Lazada's decision to increase transactions between buyers and third-party sellers. It is worth noting that Alibaba is more inclined to sell products itself. For Poignant, the parent company's resources and the technological edge will help push Lazada to a level that's above Shopee, Amazon, and other industry rivals.
Alibaba has been helping establish Lazada as an industry mainstay ever since it acquired the Singapore-headquartered retail giant on March 2018. Ant Financial merged with helloPay to help propel payment processing transactions. Other innovative systems have also been passed down to Poignant's domain.
For his part in Alibaba's efforts to boost Lazada's profitability and competitive edge, Poignant has started imparting his experience and knowledge into the company. With his MIT (Massachusetts Institute of Technology) education and in-depth experience in Southeast Asian markets, it is expected that he can push the firm to the top.
Under Poignant's leadership, Lazada has been adding new products and brands to its website. Last week, multiple outlets confirmed that Revlon products are finally available for order on the retail store. According to Cosmopolitan Philippines, a 50 percent off sale was also rendered for a number of products until March 2.
Hopes and expectations are high on Poignant's shoulders and while most analysts are optimistic about his output, others believe that it will take more time before Lazada is able to turn the retail industry around.
