Mon Nov 25 23:41:23 UTC 2024: ## Alibaba Merges Chinese and International E-commerce Units to Boost Competitiveness
**HONG KONG** – Alibaba Group Holding Limited (BABA) announced a major restructuring Thursday, merging its Chinese and international e-commerce platforms under a single entity, the Alibaba E-commerce Business Group. This move marks the first time the company has centralized these operations, aiming to improve efficiency and competitiveness in a challenging market.
The new group, to be led by Jiang Fan, will incorporate Taobao and Tmall Group, along with Alibaba’s international digital commerce arm, which includes AliExpress, Alibaba.com, and regional platforms. Jiang Fan, previously head of Tmall, will report directly to Alibaba CEO Eddie Wu.
This restructuring comes amid intensifying competition from domestic rivals like ByteDance’s Douyin and PDD Holdings’ Pinduoduo, as well as international players such as Temu. The challenging Chinese consumer market further exacerbates this competitive pressure.
Alibaba CEO Eddie Wu stated in a letter to staff that the reorganization is necessary to enhance supply chain efficiency, fulfillment capabilities, and customer service – key factors for future success in the evolving e-commerce landscape. He pointed to a 29% year-over-year rise in the September quarter in the international business as evidence of the strategy’s early success. While exact figures were not released, Alibaba reported that Singles Day sales exceeded expectations, boosted by government stimulus measures.
The merger is part of Alibaba’s broader plan to reorganize into six independent business units, its most significant restructuring to date. The company is striving to streamline operations and improve its market position amidst a complex and competitive environment.
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