A trio of changes – new competition, a sluggish economy and continued regulatory pressures – have prompted China’s Alibaba to revamp its e-commerce business and appoint a new chief financial officer (CFO).
In an effort to become more agile and accelerate its expansion, Alibaba is dividing its e-commerce business into two divisions: international digital commerce and digital commerce in China, Reuters reported on Monday (December 6).
Jiang Fan, who headed the company’s central retail markets in China, will lead the international digital business unit, which includes AliExpress, Lazada and Alibaba.com. While AliExpress primarily sells to retail buyers in Europe and South America, Lazada and Alibaba.com focus on global business customers.
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The change aligns with Alibaba’s goal of making globalization a central tenet as well as cloud computing and consumer spending in China, according to the report.
Hong Kong-based Guotai Junan analyst Danny Law told Reuters that globalization is helping on two fronts during China’s period of intense surveillance: giving Alibaba a new flow of external traffic and attracting new growth prospects. .
Tmall and Taobao, Alibaba’s central marketplaces, will include China’s digital commerce division, which will be led by Trudy Dai, who has experience leading other Alibaba platforms. Tmall caters to established brands, while Taobao caters to all retailers.
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Dai will also lead Alibaba’s community e-commerce department, Taocaicai, Taobao Deals, and Lingshoutong retail management platform, Xiaoyan Wang, analyst at 86research.com, told Reuters.
Deputy CFO Toby Xu will succeed Maggie Wu as CFO. Xu arrived at Alibaba in 2018 from PWC.
Faced with a weaker economy with more competitors amid increasing regulatory intervention, Alibaba lowered its forecast for annual revenue growth to the lowest since the company went public seven years ago. The company also faced record fines in April due to its dominant position in the market.
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