Caixin Summit: Chinese E-Commerce Platforms in Southeast Asia Turn Profitable, Investor Says
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Qu Tian, founder of ATM Capital, speaks at the 16th Caixin Summit on Nov. 13. Photo: Caixin
Chinese-backed e-commerce and logistics ventures are scaling quickly and reaching profitability across Southeast Asia, marking a turning point in the region’s digital economy, according to Qu Tian, founder of ATM Capital.
“Based on our observations, China-backed TikTok Shop and Lazada have become fully profitable in Southeast Asia, and the brands and merchants that rely on these platforms are also seeing good profitability,” Qu said on Thursday at the 16th Caixin Summit in Beijing.
The transition to profitability represents a key milestone for Chinese firms expanding abroad. Their business models — combining e-commerce with advanced logistics — are gaining ground in one of the world’s most rapidly expanding consumer markets. The trend highlights China's growing success in exporting its digital ecosystem and competing globally.
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- Chinese-backed e-commerce and logistics firms, such as TikTok Shop, Lazada, and J&T, are now profitable and expanding rapidly in Southeast Asia.
- Chinese brands and tech products are gaining top market positions, with new-energy vehicles holding 20-30% of market share in the region within 1-2 years.
- Localization, including hiring and long-term presence in local markets, is cited as a key factor in Chinese companies' overseas success.
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Who’s Who
- ATM Capital
- ATM Capital is a venture capital firm founded in 2017 and based in Jakarta, focused on Southeast Asia. Its founder, Qu Tian, noted that Chinese-backed e-commerce and logistics ventures are achieving profitability in the region. ATM Capital's portfolio includes J&T, beauty brand Y.O.U, and TOMORO COFFEE. Qu emphasizes localization as key to Chinese firms' international success.
- TikTok Shop
- TikTok Shop, a Chinese-backed e-commerce venture, has achieved full profitability in Southeast Asia. This marks a significant milestone for Chinese firms expanding globally, leveraging a business model that combines e-commerce with advanced logistics. The platform's success indicates the growing influence of China's digital ecosystem in one of the world's fastest-growing consumer markets.
- Lazada
- Lazada, a Chinese-backed e-commerce platform, has achieved full profitability in Southeast Asia. This marks a turning point for Chinese firms expanding abroad, showcasing the success of their business models that combine e-commerce with advanced logistics. Brands and merchants using Lazada are also experiencing good profitability.
- J&T Global Express Ltd.
- J&T Global Express Ltd. (极兔速递) is a logistics firm that has seen significant growth in Southeast Asia. An early investment by ATM Capital, its operations in the region are experiencing sharply climbing parcel volume and profitability, with third-quarter profit rising 80%. Its freight arm, J&T Cargo, also reports simultaneous increases in revenue and profit.
- J&T Cargo
- J&T Cargo, the freight arm of J&T Global Express Ltd., is experiencing concurrent increases in both its revenue and profit. This growth signifies a positive trend for the Chinese-backed logistics venture in Southeast Asia, highlighting its contribution to the overall profitability and expansion of Chinese firms in the region's digital economy.
- Y.O.U
- Y.O.U is a beauty brand and one of the portfolio companies of ATM Capital. ATM Capital, founded in 2017 and based in Jakarta, is a venture capital firm focused on Southeast Asia.
- TOMORO COFFEE
- TOMORO COFFEE is a brand within the investment portfolio of ATM Capital, a venture capital firm established in 2017 and based in Jakarta. ATM Capital focuses on ventures in Southeast Asia. This information indicates TOMORO COFFEE is likely a company operating in or targeting the Southeast Asian market.
- Oppo
- Oppo is identified as one of the "top consumer brands" from China that has gained significant traction in Southeast Asia. This highlights its success in the region's rapidly expanding consumer market, alongside other Chinese brands like Vivo, Xiaomi Corp., and Pop Mart.
- Vivo
- Vivo is a Chinese brand that has become a "top consumer brand" in Southeast Asia. This highlights the growing success of Chinese firms in exporting their digital ecosystem and competing globally.
- Xiaomi Corp.
- Xiaomi Corp. is mentioned as one of the "top consumer brands" in Southeast Asia, according to Qu Tian, founder of ATM Capital. This indicates that Xiaomi, a Chinese brand, has achieved significant penetration and recognition in the region's consumer market.
- Pop Mart
- Pop Mart is a Chinese brand that has become a "top consumer brand" in Southeast Asia. This highlights China's growing success in exporting its digital ecosystem and competing globally, with Chinese firms expanding and achieving profitability in the region.
- Google is among the major U.S. tech companies investing in infrastructure to support the growing adoption of AI-powered applications in Southeast Asia. This investment highlights the company's role in the region's expanding digital ecosystem.
- Alibaba Group Holding Ltd.
- Alibaba Group Holding Ltd. is a major Chinese tech company investing in AI-powered applications in Southeast Asia. Its infrastructure investments support the growing adoption of these applications in the region.
- Tencent Holdings Ltd.
- Tencent Holdings Ltd. was mentioned as one of the major Chinese tech companies investing in infrastructure to support the growing adoption of AI-powered applications in Southeast Asia.
- ByteDance Ltd.
- ByteDance Ltd. is mentioned as one of the major Chinese tech companies investing in infrastructure to support the growing adoption of AI-powered applications in Southeast Asia. This highlights its role in the region's digital development alongside other tech giants.
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