The stakes have been raised for Alibaba Group Holding, as it eyes China consumption, globalisation and advances in technology to drive future growth after a challenging 2021. Photo: AP
Alibaba reorganises back-end operations of core Chinese online retail platforms Taobao, Tmall amid increased competition
Three new operation centres have been set up for both Taobao and Tmall, focused on platform strategies, user expansion and industrial development for merchants
This marks the first major initiative by Trudy Dai Shan, head of Alibaba’s new China digital commerce unit
Alibaba Group Holding has restructured the back-end operations of its core Chinese online retail platforms Taobao Marketplace and Tmall, as the e-commerce giant moves to bolster its lead in the world’s second-largest economy amid increased competition and tightened regulation.
The reorganisation involves the establishment of three new operation centres for both Taobao and Tmall that are focused on platform strategies, user expansion and industrial development for merchants, according to a report on Thursday by state-run newspaper People’s Daily, citing an internal Alibaba letter. Hangzhou-based Alibaba, owner of the South China Morning Post, confirmed the report on Friday, but declined to comment further.
That new set-up, which took effect immediately, is expected to sharpen the two platforms’ attention on user experience and encourage so-called mechanism innovation, according to the report. It said the designated leaders of those three centres will report directly to Trudy Dai Shan, head of Alibaba’s new China digital commerce unit, which combines the company’s consumer-facing and wholesale marketplaces.
It marks the first major initiative by Dai, a member of Alibaba’s co-founding team, in her new role, a month after the biggest management reshuffle at the company in recent times. Dai, who has worked across multiple business segments in Alibaba, is known inside the company as Su Quan, one of the most powerful female martial artists in novelist Louis Cha Leung-yung’s kung fu masterpiece The Deer and the Cauldron.
Trudy Dai Shan, head of Alibaba Group Holding’s China digital commerce unit and a member of the company’s co-founding team. Photo: Handout
One rationale behind the back-end reorganisation is to break the boundaries between Taobao and Tmall, which could lead to better services for merchants and persuade them to stay on Alibaba’s platform, according to Arch Pei, an independent internet analyst who previously worked at Sinolink Securities, in a report published on his WeChat account.
Launched in 2003, Taobao provides consumers across China’s large cities and less-developed areas with an engaging, personalised shopping experience from small merchants, optimised by big-data analytics and technology. Tmall, which started in 2008, caters to local consumers’ growing demand for high-quality products from various brands worldwide and offers a premium shopping experience.
Alibaba, according to internet analyst Pei, is pushing for improved video quality and content amid fierce competition with the likes of Douyin, the Chinese short video-sharing platform run by TikTok owner ByteDance, and rival provider Kuaishou Technology, which are aggressively wooing young Chinese consumers with different online shopping experiences.
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Annual active consumers in Alibaba’s global ecosystem reached 1.24 billion in the 12 months ended September 30, according to company data. That includes 953 million consumers in China and 285 million overseas.
In November, Alibaba reported an 81 per cent decline in net income to 5.37 billion yuan (US$833 million) attributable to ordinary shareholders in the quarter ended September 30, down from 28.77 billion yuan a year earlier amid increased investments in other strategic business areas, such as Taobao Deals, and losses from investments in publicly traded companies.
