Alibaba Group is consolidating its domestic and international e-commerce operations into a unified business unit to counter increasing competition, according to a Thursday stock exchange filing. The move marks the first time the company will house its Chinese and global platforms under a single leader.
The new Alibaba E-commerce Business Group will integrate its Taobao and Tmall Group with the Alibaba International Digital Commerce (AIDC) Group. The latter includes cross-border platforms like AliExpress, B2B site Alibaba.com, and regional operations across Southeast Asia and Türkiye.
Jiang Fan, previously head of Tmall and currently leading the AIDC Group, will oversee the combined unit. Reporting to Alibaba’s CEO Eddie Wu, Jiang is tasked with steering the company’s e-commerce strategy in both domestic and international markets.
Revamping E-Commerce for a Competitive Edge
In an internal letter shared on Alibaba’s intranet, Wu emphasized the evolving e-commerce landscape, highlighting the importance of robust global supply chains, fulfillment systems, and superior consumer services to maintain a competitive edge.
The restructuring builds on Alibaba’s broader overhaul in 2023, which saw the company split into six business groups to improve operational agility. Before this latest consolidation, Wu managed the Taobao and Tmall Group and Alibaba’s cloud division.
The e-commerce giant faces mounting pressure from aggressive competitors like Pinduoduo, its international counterpart Temu, and ByteDance’s platforms, including Douyin in China and TikTok abroad, which are gaining traction by offering low-cost goods.
Positive Momentum Amid Challenges
Despite a challenging consumer environment in China, Alibaba’s international division has shown significant growth under Jiang’s leadership. In its September quarter earnings report, AIDC posted a notable 29% revenue increase, standing out among the company’s segments.
This year’s Singles Day sales event, often seen as a barometer for Chinese consumer confidence, exceeded analyst expectations. While Alibaba did not disclose exact sales figures, it reported robust growth and a record number of shoppers during the almost month-long event.
Alibaba co-founder Jack Ma, in an April memo, expressed support for the company’s restructuring efforts, acknowledging past missteps and reinforcing the importance of these changes to the company’s long-term vision.
A Strategic Reset
By consolidating its e-commerce units, Alibaba signals a strategic pivot to bolster its position at home and abroad. With Jiang Fan at the helm, the company aims to leverage its global reach and infrastructure to stay ahead in an increasingly competitive market.
Featured image courtesy of Campaign Asia
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