Lazada Thailand’s CEO shake-up
Lazada Thailand is poised for a major shake-up as insiders reveal plans to oust current CEO Werapong Goo in favour of COO Varitha Kiatpinyochai.
The anonymous source suggests Goo’s departure is driven by a pursuit of new horizons, leaving the company at a critical crossroads.
Varitha, who has spent eight years at Lazada Thailand, emerges as the frontrunner for the coveted position. Lazada has refused to comment.
Werapong Goo took over as Lazada Thailand CEO in 2019. A former strategic management consultant at Boston Consulting Group, his departure signals a turning point for the company.
Varitha Kiatpinyochai will become the second female chief at Lazada Thailand. Meanwhile, reports of layoffs circulating across Southeast Asia raise questions about the company’s internal dynamics.
Insiders suggest a strategic realignment to tackle fierce competition from rivals such as Shopee and TikTok Shop. Lazada’s move to streamline operations amid layoffs aligns with a broader industry trend where profitability takes precedence over rapid expansion.
Despite being a profitable entity, Lazada Thailand, with over 1,100 employees as of March last year, faces the harsh realities of the current economic climate. In an effort to remain competitive, the company appears to be pivoting towards a leaner organisational structure.
Analysts highlight the intensified competition in the e-commerce landscape, with Shopee claiming a dominant 56% share of Thailand’s gross merchandise value in 2022. Lazada, holding a 40% share, and TikTok Shop at 4%, grapple with a strategic dilemma—prioritise profitability or chase top-line growth, reported Bangkok Post.
A report by market intelligence research firm Cube Asia sheds light on Lazada’s tough decisions, emphasising the company’s commitment to profitability amid growing challenges. With rivals like Shopee posting profitable quarters, Lazada aims to restructure and align its business model to Alibaba’s overarching goal of a Lazada Group spin-off.
In related news, Lazada Thailand has set the stage for fierce competition in the local logistics sector by investing heavily in a state-of-the-art sorting facility, its largest investment in Southeast Asia. This move anticipates a boom in the e-commerce market, predicted to hit US$32 billion (1 trillion baht) by 2025.
