It appears Chinese companies are not yet content on securing a foothold in the Southeast Asian e-commerce space, and instead are looking to dominate it. Amid rumours of the two partners behind 11street Malaysia looking to exit, Alibaba and JD.com are said to be in talks to acquire the platform.
11street Malaysia is the country’s second-largest e-commerce platform, and is the product of a partnership between Celcom Axiata Berhad and SK Planet. Rumours began circulating recently that SK Planet was seeking to exit the region, before the company reiterated its commitment.
However, that hasn’t stopped the floodgates. A report on Deal Street Asia revealed that 11street is now in talks with both Alibaba and JD.com to sell the business. An acquisition by either party is becoming imminent, as the Chinese e-commerce behemoths have different motivations in gaining control of 11street Malaysia.
For Alibaba, it is a move that will cement its position as the top dog in the Malaysian e-commerce space. It already holds a massive 83% of Lazada Malaysia, the country’s top e-commerce platform. Owning 11street as well would mean only a minority market share for Tencent-backed outfit Shopee, and Qoo10, which is owned by eBay.
On the other hand, JD.com is the largest retailer in China by revenue, and is now aggressively looking to expand into Southeast Asia. It has identified Thailand as a regional hub, and securing 11street Malaysia would instantly make it the number two e-commerce platform in Malaysia, pitting it head on with Alibaba’s Lazada.
With Shopee and even Amazon scrambling for market share in Southeast Asia, the outcome for 11street Malaysia’s potential new owners are sure to be closely watched across the region.
(Source: Deal Street Asia)