WhatsApp’s uphill battle to conquer e-grocery in India

In The Checkout this week, we dive into the implications of WhatsApp-JioMart tie-up in India and examine whether Lazada's expansion into Europe. [Read from your browser]( The Checkout 🛒 --------------------------------------------------------------- Welcome to The Checkout! Delivered every Thursday, this free newsletter breaks down the biggest stories and trends in ecommerce. You can find past issues [here]( or [sign up here]( to receive future newsletters. Also, If you’re not a subscriber, get access by [registering here](. Written by Putra Muskita Journalist Hello {NAME} In the past couple of months, I’ve found myself growing increasingly dependent on Astro, a quick-commerce service. How could I not? The dark store near my apartment is pretty good at delivering what I need within 30 minutes. Plus, you get free delivery when you order for more than 100,000 rupiah (US$6.70). Sure, some of the items are slightly more expensive than I’d find them if I dragged myself to the store (startups have to make money too). But as many of my fellow Jakartans would attest, given the city’s notorious traffic, quick commerce is more convenient than driving to the nearest Indomaret every time you run out of something. Now, it’s easy to assume everyone else shares my experiences. But that’s exactly the kind of blind spot journalists need to avoid. In this week’s Big Story, my colleague, Samreen, dives into the partnership between WhatsApp and JioMart in India that will let consumers buy groceries directly through the messaging app. While the numbers look great (India tops the world with more than 400 million users), there is an inherent tension there. Urbanites who prize convenience (like me) already are using e-grocery apps. Meanwhile, one of WhatsApp and JioMart’s prime targets are “boomers,” who only use the platform for free messaging - but would they even consider paying a premium for e-grocery? In this week’s Hot Take, I look at Alibaba’s recent US$912.5 million investment to bolster Lazada. Is it enough for the latter to achieve its European ambitions? – Putra  --------------------------------------------------------------- THE BIG STORY [400m Indians live on WhatsApp. Will they shop on it?]( Meta's WhatsApp and Reliance's JioMart can be a match made in heaven, but cracking e-grocery in India is not easy.  ---------------------------------------------------------------  THE HOT TAKE  Is Lazada’s European entry a distraction? Here’s what happened: - Alibaba has recently [injected]( US$912.5 million into Lazada. - Lazada Group CEO James Dong has [publicly declared]( the company’s ambition to conquer Europe. Dong told Bloomberg that the firm goes “where the brands want us to go.” - Meanwhile, Europe is also facing macroeconomic headwinds, with the Ukraine war sending inflation to [record heights](. Here’s our take: Back in April, Tech in Asia analyzed Lazada’s Europe ambitions in this [deep dive](. The official announcement has now come, but much has changed since then. The war in Ukraine is showing little sign of abating while rising energy prices have driven up inflation globally - but most acutely in Europe. It’s safe to assume that shoppers in Europe would cut their discretionary spending in favor of more crucial expenses. Would that bode well for a newcomer in the ecommerce space? Still, Alibaba and Lazada seem committed to this strategy. The former’s latest capital injection follows another one [earlier this year]( which brings the total to over US$1 billion. That may seem like a lot of money, but perhaps it’s not so much in the context of global ecommerce. Amazon has a strong presence in Europe the US-headquartered marketplace has invested over [US$100 billion in its European business]( since 2010, a spokesperson told Bloomberg. That absolutely dwarfs Alibaba’s investments in Lazada. Would Alibaba be willing to inject that kind of capital into the ecommerce arm? If the stock market is any indication, perhaps a more prudent approach would be more preferable: Alibaba’s shares are trading at below HK$90 apiece, continuing a downward trend that started in October 2020. On the other hand, perhaps risky moves are the need of the hour for Alibaba to gain some traction, especially with political tensions back home. The company did not get to where it is now without making some big bets - even Pinduoduo is [quietly entering]( the US market. For Lazada, though, focusing on Southeast Asia presents its own set of advantages. Even though it is no longer the top marketplace in most of the region’s markets, it still has a sizeable user base. And with Shopee showing some [unexpected signs of weakness]( lately, it may be a good time for Lazada to double down and strike. One thing to watch out for next, perhaps, is how Lazada will perform the balancing act: Can it make inroads at home while seizing new opportunities abroad? That’s to be seen. But what’s clear is that Lazada’s first order of business may simply be to ensure some [stability at the top](. – Putra  ---------------------------------------------------------------  FYI [Carsome doubles revenue in FY21, though losses widen]( A Carsome spokesperson says, however, that a sizable chunk of its expenses came from non-cash fair value adjustments, thus unrelated to the business’ operating performance.  ---------------------------------------------------------------  NEWS YOU SHOULD KNOW Check out Tech in Asia’s coverage of the ecommerce scene [here](. 1️⃣ E-grocery platform HappyFresh has [hired a turnaround firm]( to review its troubled finances. 2️⃣ Fast-fashion retailer Shein’s gross merchandise value exploded to [US$16 billion]( in H1 2022, which may help it achieve its US$30 billion sales target ahead of schedule. 3️⃣ [Coolmate]( a Vietnamese menswear direct-to-consumer startup, added US$2.3 million to its series A round, bringing the total funding raised in the round to US$4.3 million. 4️⃣ Pinduoduo has quietly launched [Temu]( a shopping site, marking its entry into the US market. 5️⃣ Amazon is reportedly considering entering [Japan’s online prescription drug space]( where it will partner with local pharmacies.  --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. See you next week! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2022 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894