Shanghai: Alibaba Group Holding Ltd said it will reorganize its international and domestic e-commerce businesses and replace its CFO – changes that come as the tech giants come with onslaught of competition, a slowing economy and a regulatory crackdown.
It will create two new entities – International Digital Commerce and China Digital Commerce, which were part of efforts to become more agile and accelerate growth.
The international digital commerce unit will include AliExpress which sells exclusively to retail buyers in Europe and South America, its Southeast Asian e-commerce business Lazada and Alibaba.com which is more focused on selling to overseas business customers.
It will be led by Jiang Fan, who was in charge of its core Chinese retail markets, and the change is seen in line with Alibaba’s aim to make ‘globalization’ a key focus area, in addition to cloud computing and home consumer spending.
Globalization “helps Alibaba receive new traffic volumes externally (and) seek new growth potential while China is increasing supervision,” said Hong Kong-based Guotai Junan analyst Danny Law.
Alibaba’s two main markets will be included in China’s digital commerce unit, tamal for established brands and taobao Which welcomes all types of traders. It will be headed by Trudy Dai, who has previously overseen several Alibaba platforms.
The new structure for domestic e-commerce puts Dai in charge of all China retail markets, including Taokaikai — its community e-commerce service, Taobao Deals, as well as retail for mom and pop stores, the 86research.com analyst said. Management platform includes Lingshoutong. Xiaoyan Wang.
“It could potentially unlock greater synergies through cross-selling and integration of the supply chain,” she said.
Alibaba also announced that the Deputy Chief Financial Officer toby zoo Describing his appointment as part of the company’s leadership succession plan, Maggie will succeed Wu as CFO from April. Xu joined Alibaba from PwC three years ago.
Hong Kong-listed shares of the e-commerce giant fell 6% in morning trading, tracking Friday’s declines in the United States.
US-listed shares of Chinese firms have eased concerns about tighter regulatory scrutiny at home in the wake of Didi Global Inc’s plan to delist from the New York Stock Exchange.
Affected by weak growth for the economy and fierce competition from a plethora of rivals, Alibaba last month slashed its forecast for annual revenue growth to its slowest pace since the start of the 2014 stock market. It also saw sales at its banner event, online shopping festival Singles Day, grow at the slowest rate ever.
Chinese regulators have also cracked down on tech and other areas, particularly over anti-trust issues, which have left Alibaba a policy of requiring merchants to set up shop exclusively on its platforms. The company was fined a record 18 billion yuan ($2.8 billion) in April for abusing its dominant market position.
It will create two new entities – International Digital Commerce and China Digital Commerce, which were part of efforts to become more agile and accelerate growth.
The international digital commerce unit will include AliExpress which sells exclusively to retail buyers in Europe and South America, its Southeast Asian e-commerce business Lazada and Alibaba.com which is more focused on selling to overseas business customers.
It will be led by Jiang Fan, who was in charge of its core Chinese retail markets, and the change is seen in line with Alibaba’s aim to make ‘globalization’ a key focus area, in addition to cloud computing and home consumer spending.
Globalization “helps Alibaba receive new traffic volumes externally (and) seek new growth potential while China is increasing supervision,” said Hong Kong-based Guotai Junan analyst Danny Law.
Alibaba’s two main markets will be included in China’s digital commerce unit, tamal for established brands and taobao Which welcomes all types of traders. It will be headed by Trudy Dai, who has previously overseen several Alibaba platforms.
The new structure for domestic e-commerce puts Dai in charge of all China retail markets, including Taokaikai — its community e-commerce service, Taobao Deals, as well as retail for mom and pop stores, the 86research.com analyst said. Management platform includes Lingshoutong. Xiaoyan Wang.
“It could potentially unlock greater synergies through cross-selling and integration of the supply chain,” she said.
Alibaba also announced that the Deputy Chief Financial Officer toby zoo Describing his appointment as part of the company’s leadership succession plan, Maggie will succeed Wu as CFO from April. Xu joined Alibaba from PwC three years ago.
Hong Kong-listed shares of the e-commerce giant fell 6% in morning trading, tracking Friday’s declines in the United States.
US-listed shares of Chinese firms have eased concerns about tighter regulatory scrutiny at home in the wake of Didi Global Inc’s plan to delist from the New York Stock Exchange.
Affected by weak growth for the economy and fierce competition from a plethora of rivals, Alibaba last month slashed its forecast for annual revenue growth to its slowest pace since the start of the 2014 stock market. It also saw sales at its banner event, online shopping festival Singles Day, grow at the slowest rate ever.
Chinese regulators have also cracked down on tech and other areas, particularly over anti-trust issues, which have left Alibaba a policy of requiring merchants to set up shop exclusively on its platforms. The company was fined a record 18 billion yuan ($2.8 billion) in April for abusing its dominant market position.
,