Lazada says sales are growing so fast in Southeast Asia it plans to double its warehousing capacity in the region.
The Singapore-headquartered online department store currently ships from 10 warehouses across the region and plans to open a further three next year alone. Before 2020 dawns it expects to have 20.
CEO Maximilian Bittner told Reuters demand is growing faster in the smaller cities than the capital cities.
“You have a growing middle class (in the smaller cities), who has disposable income and they want to spend their money.”
Majority-owned by Germany’s Rocket Internet, Lazada operates in Singapore, Malaysia, Indonesia, the Philippines, Thailand, and Vietnam. Bittner says there are no current plans to expand beyond those markets, although the company is keeping a watchful eye on Cambodia, Laos and Bangladesh.