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Lazada’s youngest executive believes AI and logistics are the company’s biggest strengths compared to rivals like Temu

Lazada’s key advantage in Southeast Asia amid growing competition from new entrants such as Temu and PDD Holdings ByteDanceTikTok relies on technology such as artificial intelligence (AI) and logistics, Lazada Thailand CEO Varitha Kiatpinyochai said on Friday.

“Because Lazada is part of Alibaba Group, we can really leverage the group’s best-in-class technology and ecosystem,” Kiatpinyochai, who acquired Lazada Thailand this year, said in an interview on the sidelines of the Hong Kong-Asean summit, where she spoke about the e-commerce landscape in Southeast Asia. “The big advantage is how we leverage technology, especially AI, in the app throughout the consumer’s shopping journey. I think AI has really been a game-changer.”

Lazada employees work in Bangkok, Thailand, October 21, 2019. Photo: Xinhua
Lazada employees work in Bangkok, Thailand, October 21, 2019. Photo: Xinhua

Kiatpinyochai, Lazada’s youngest executive at 32, highlighted how Lazada is using AI in various areas to better engage consumers, especially the more tech-savvy consumers in Thailand. One of the latest developments is LazzieChat, a chatbot that uses OpenAI’s GPT model instead of Alibaba’s own Tongyi Qianwen models. Generative AI has been a key part of Lazada’s localization efforts, and LazzieChat is now available in Bahasa Indonesia, while Thai and Vietnamese versions are planned.

Competition has been heating up in the global e-commerce sector recently as companies like Temu and Shein leverage relationships with Chinese manufacturers to compete aggressively on price.