In India, a thing for beauty can be delivered in 15 minutes

In The Checkout this week, we analyze the quick commerce trend in India’s beauty industry and delve into the latest layoffs at Lazada. [Read from your browser]( The Checkout 🛒  --------------------------------------------------------------- Welcome to The Checkout! Delivered every fortnight, 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](. IN FOCUS In today's newsletter, we spotlight: - The quick commerce trend in India’s beauty industry - The recent job cuts at Lazada - How [PDD has surpassed Alibaba]( in market value --------------------------------------------------------------- Hello {NAME} Beauty has become one of the most popular categories on ecommerce platforms in recent years, especially with the boom of live selling. Many influencers and livestreamers promote beauty products during their live sessions. But did you know that in India, online shoppers can get their beauty fix in a jiffy? Platforms like Zomato's Blinkit, for instance, offer instant delivery where consumers can receive their skincare and makeup purchases in just 15 minutes. Mamaearth, one of India's major beauty players, said the company has seen 100% year-on-year growth in that segment. So far, though, this trend hasn’t crossed over to Southeast Asia. In our Big Story, my colleague Samreen examines how India’s beauty industry has embraced quick commerce. With a higher contribution margin of 10% to 15% compared to the typical 1% to 2% for grocery goods, beauty products could be beneficial to quick commerce platforms that have long faced questions about their profitability. Meanwhile, I discuss the latest layoffs at ecommerce titan Lazada in our Hot Take this week. Are the job cuts related to the increasingly intense competition from contenders such as TikTok Shop and Temu? Read on to find out. -- Jofie  --------------------------------------------------------------- THE BIG STORY [Beauty ecommerce in India gets speedy makeover via quick commerce]( While 15-minute deliveries of beauty items are taking off in India, the same can’t be said for Indonesia.  ---------------------------------------------------------------  THE HOT TAKE Making sense of the recent layoffs at Lazada Here’s what happened: - Lazada is expected to [reduce its headcount]( across different markets by 30%. - The customer care, marketing, and commercial teams are the most affected departments. - The retrenchments come amid speculation that Alibaba’s international ecommerce arm, which includes Lazada, is seeking to list in the US sometime this year. Here’s our take: In the past week, Lazada employees across Southeast Asia have been announcing on LinkedIn that they’re “open to work.” They were among those hit by the latest layoffs at the company, which affected staff in various positions. This move was unexpected, considering that Lazada just got a capital injection worth [US$643 million]( from its parent company, New York- and Hong Kong-listed Alibaba, in December 2023. The job cuts come amid heated competition following the arrival of TikTok Shop and Temu in the region. TikTok Shop may have even upped the ante in Indonesia by [acquiring a stake in local giant Tokopedia]( making competition much tougher for Lazada in the country. Industry dynamics have compelled incumbents to reinvest in order to retain their customers. Sea Group’s Shopee, for instance, has doubled down on incentives and promotions, especially in the livestreaming segment, to fend off TikTok Shop. On the other hand, profitability remains a focus for players whose parent companies are publicly traded. Shopee had achieved adjusted earnings profitability for three consecutive quarters, but it slid back to being in the red after committing to reinvest in the third quarter of 2023. Insights firm [Cube Asia]( believes that slashing jobs is Lazada's attempt to "position itself for profitability and coming fundraising." Public market sentiments that reward profitability make it more crucial for the company to stay lean, especially as it reduces its reliance on Alibaba. However, can Lazada maintain or boost its market share in the region while pursuing profitability simultaneously? Given the ample resources of challengers like TikTok Shop, it may be an uphill battle for Lazada.  ---------------------------------------------------------------  NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the ecommerce scene [here](. 1️⃣ [SG government to support Lazada’s retrenched workforce]( Digital Industry Singapore is helping affected workers find new jobs. 2️⃣ [Supply chain issues bog down AliExpress, Temu in South Korea]( Delivery delays and product quality concerns are hampering both companies as they swiftly expand in the country. 3️⃣ [Internal struggles, job losses plague Alibaba, employees say]( Analysts and Alibaba insiders have criticized the company’s inability to compete against aggressive rivals. 4️⃣ [Tata Payments receives ecommerce license from India’s central bank]( The license is also held by the likes of Google, Amazon, and Razorpay. 5️⃣ [Meituan’s KeeTa claims 2nd spot in Hong Kong’s food delivery market]( The app's rapid growth has been attributed to large subsidies.  ---------------------------------------------------------------  FYI 1️⃣ [Tracking PDD’s Temu-fueled rise to surpass Alibaba in market value]( In December 2023, PDD Holdings became China’s most valuable ecommerce firm after overtaking Alibaba in terms of market capitalization. --------------------------------------------------------------- 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 soon! [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 © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894