A study conducted by data analysis service Creden Data, indicates that over the past 7 years the three major E-Commerce operators Lazada, Shopee and JD Central, have achieved a combined revenue of about 85 billion baht.
However the period has not been profitable for everybody. In fact, Lazada is the only company to have reported a profit of 226 million baht for 2021, while Shopee and JD Central reported losses of 4.9 and 1.93 billion baht respectively.
The analysis agency Creden Data indicates that these losses are due to the fact that companies have invested heavily to win new users. The E-Commerce sector is indeed a very competitive sector and companies must intensify their efforts to win new market shares with sometimes long term returns on investment, so these companies must be patient.
Lazada’s profit is mainly driven by its position as the historical market leader after its acquisition by Alibaba in 2016. Meanwhile, Shopee is expanding its mobile app service to attract more customers, while JD Central is planning innovative projects for Q3 2022.
