Lotte Shopping to close e-commerce sites in Vietnam, Indonesia as Chinese rivals gain
SEOUL, NNA – South Korean retailer Lotte Shopping Co. will withdraw its e-commerce business from Vietnam and Indonesia due to tough competition with Chinese rivals such as Alibaba Group.
The company plans to liquidate Lotte E-commerce Vietnam Co. by the end of this month, the Maeil Business Newspaper in South Korea reported. Lotte Shopping has decided also to divest its stake in a 50-50 e-commerce joint venture with Indonesian conglomerate Salim Group.
Lotte Shopping established the Vietnamese subsidiary in 2016. It operates an online service and a mobile app for sales. The Indonesian venture, founded in 2017, sells South Korean-brand cosmetics and apparels.
The South Korean retailer under conglomerate Lotte Corp. group still runs two department stores in Vietnam and one in Indonesia, according to its 2019 financial statement. It also operates 14 Lotte Mart hypermarkets in Vietnam and 50 in Indonesia, the statement says.
Lotte Shopping Co. aims to increase the number of Lotte Mart outlets in Indonesia to 100 by 2023, the local report said.