, a fashion-oriented e-commerce site, has confirmed that it would sell its businesses in Thailand and Vietnam, a Zalora spokesperson was quoted by Forbes
The spokesperson said Bangkok-headquartered retailer Central Group
would be purchasing the Thailand business, but did not reveal the purchaser of the company’s Vietnam operations, only saying that Central Group was not the buyer.
Rumors of this exit popped up earlier this week with TechCrunch reporting that the businesses would be sold for $10 million each to Central Group.
According to TechinAsia, Zalora has incurred hundreds of millions of dollars in losses in the past few years.
Rocket Internet's financial statements. (Source: TechinAsia)
Zalora is part of a long list of internet companies belonging to Berlin-based Rocket Internet, whose parent firm, Global Fashion Group, has just announced that it has raised $339 million. It is likely that investors want to see a clear path to profitability for Zalora.
According to a statement from the Global Fashion Group, the “strategy is to invest and focus on developing leading and profitable e-fashion businesses in countries with significant fashion e-commerce market upside.”
What this means is that the fashion e-commerce store will concentrate on high-potential, high-growth markets like Indonesia and Singapore and weed out the ones that aren’t performing, according to TechinAsia.
Zalora is also operating in Singapore, Malaysia, Brunei, Indonesia, the Philippines, Hong Kong and Taiwan.