Lazada’s Success in Online Retail

Success is a situation that does not happen inadvertently. It is a situation resulting from hard work, knowledge, discipline and dedication. It is a by-product of great practices, innovation and fast execution.  Having said all of those things that are precursors of success, it has become more obvious that success does not come on the heels of mediocrity. Since talks of success is currently on the table, we are going to drop a name of a highly successful online retail store and analyze what made the company great and profitable. That online shopping company is Lazada Philippines , an online shopping company or retail store created by the world’s leading online venture builder and business incubator Rocket-Internet. 

The mention of Rocket-Internet is enough information for us to figure out why Lazada is so successful even though the company has been around for just a short amount of time. Also the mere association with Rocket-Internet points to the direction that the company is beyond the ordinary. What does Rocket-Internet really do anyway and why they have contributed so much to the success of Lazada Philippines. Here goes a quick primer on what Rocket-Internet is doing; Rocket-Internet is an online venture builder and a business incubator like what I have mentioned earlier.  A business incubator is a conglomeration of different business support processes, methodologies, best practices, procedures, logistics and manpower with the main goal of supporting a start-up online company (though business incubation is not only confined to online businesses but rather it is applicable to all types of industries) the main reason why support is being provided is to lessen if not eliminate the probability of failure during the crucial start-up phase of the business. The incubator company provides all the resources and operational know how to help the start-up company get fast tracked to success.  That is what Rocket-Internet has been doing for more than a decade of its operation. 

Just a very brief background on  Rocket-Internet, the company is an online venture builder based in Berlin, Germany and was started by the Samwer brothers in 2007 using the name Rocket-Internet albeit they have been in operation since 1999 and has established a lot of online ventures all over the world. The main business framework of the company to explain it in simple terms is the replication of successful internet business models. They are always on the search for innovative internet business ideas all over the world and when they find one, they would duplicate the process and launch the company onto an emerging market. Similar to what was done to Lazada wherein the idea came from amazon.com. Businesses established in this manner normally has a bigger shot at success because the incubation process like what I have mentioned earlier lessens if not eliminate the causes of failure that might have plagued companies that did not undergo such a procedure. So Lazada’s success in online retail did not just happen without a reason. It is backed by expertise, experience and overall passion for excellence by the company that created it.