E-commerce in the Philippines nowadays is so vibrant, populated with a lot of competitive players who are out there to make a dent in the business. One of those companies is Lazada PH an online shopping pioneer in the Philippines that has been making gargantuan waves since its foray into the local E-Commerce industry. Lazada has been dubbed as the Amazon.com of Southeast Asia. That comparison is inevitable and I think natural since it is, from what I have heard, a clone of Amazon by the world famous online venture builder, Germany’s Rocket-Internet. So what is Rocket-Internet? Just a brief background, Rocket-Internet is an online start up incubator. So what is an online start up incubator? You might ask. Well, what it does is that it clones successful internet websites typically websites from the United States and put them up in other countries. Once the clone website is up and running and is already successful, what happens next is that they are normally being acquired by the original company in which they were cloned from. Rocket-Internet utilizes a focused Human Resource strategy; they hire MBA schooled executives to act as the founder and managing director of the clone website. Most of these executives are seasoned veterans from multinational financial institution and consultancy firms.
The winning formula of putting together the company’s overall expertise and management experience with the cloning of a proven successful website often ends up with Rocket-Internet being on the second or third spot in the marketplace with the original company where the website was cloned from at the top. This business model is so brilliant that it made Rocket-Internet one of the largest, fastest and most successful international online venture builders. They have been doing this for more than 10 years now and have successfully created over 100 market leading companies around the world and employ as many as 15,000 employees. Having this kind of company pour in investments into the country will of course create some positive impact to the local economy particularly the employment sector. Since Lazada is aimed at the Philippines market and consumers, it is going to naturally employ local people and that directly helps the employment rate in the country. Also, Lazada’s unwavering success will naturally lead to more E-Commerce websites being put up locally which will in turn sends a ripple effect again to boosting the local economy. Another thing is that, since Lazada’s inception, participation of people in e-Commerce have surged. A lot of local people are now getting into online shopping unlike say two or three years ago when doing e-commerce means buying and selling stuff online through online market place websites such as the likes of sulit.co, olx.com, ayosdito.ph, multiply.com and others. Pinoys now have unprecedented access to premium products at the comfort of their own home with just a click of the mouse; they can have the best items at the best prices. Lazada really changed the way Pinoys do business online.
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