Staff hold a teleconference at Alibaba Group Holding's headquarters in Hangzhou, Zhejiang province. [Photo/Xinhua]

Earlier this year, Lazada introduced Alibaba's Taobao online bazaar to Singapore via a dedicated website.

It has so far provided scale, e-commerce know-how and technological expertise to support the Singapore company's efforts.

That has allowed Lazada to invest further in the marketplace, through technology, payments and logistics, enhancing its services and customer experience.

Alibaba has also helped Lazada create an online loyalty and services program that offers UberEats and Netflix along with free deliveries from Alibaba's Taobao and online grocer Redmart.

"It was the first time that US companies have jointly created an online rewards program," Bittner said.

For Alibaba, the move makes sense as it stakes an early claim in a market with enormous potential.

"The e-commerce markets in the region are still relatively untapped, and we see a very positive upward trajectory ahead of us," Daniel Zhang, chief executive officer at Alibaba, said in a statement.

"We will continue to put our resources to work in Southeast Asia through Lazada to capture these growth opportunities," he added.

Agencies-China Daily