Alibaba is reviewing its e-commerce businesses and appointing a new chief financial officer

Author: Brenda Goh

SHANGHAI (Reuters) – Alibaba Group Holding Ltd said it will revamp its international and domestic e-commerce operations and replace its chief financial officer – the changes come as the tech giant grapples with an onslaught of competition, a slowing economy and regulatory tightening.

It will create two new units – International Digital Trade and China Digital Trade, which it says are part of efforts to increase flexibility and accelerate growth.

The international digital commerce unit will include AliExpress, which sells to retail customers, particularly in Europe and South America, Lazada, an e-commerce company in Southeast Asia, and Alibaba.com, which is more focused on selling to overseas business customers.

It will be headed by Jiang Fan, who was previously responsible for China’s major retail markets, and the move is seen as consistent with Alibaba’s goal of making “globalization” a key focus area, alongside cloud computing and domestic consumer spending.

Globalization “is helping Alibaba capture new external traffic volume (and) seek new growth potential as China increases surveillance,” said Danny Law, an analyst at Guotai Junan in Hong Kong.

China’s digital commerce unit will include Alibaba’s two main marketplaces, Tmall for established brands and Taobao, which welcomes all kinds of merchants. It will be led by Trudy Dai, who previously oversaw many of Alibaba’s platforms.

The new domestic e-commerce structure puts Dai at the forefront of all China’s retail marketplaces, including Taocaicai, a social e-commerce service, Taobao Deals, as well as Lingshoutong, a retail management platform for mom and pop stores, said 86research.com analyst Xiaoyan Wang.

“This could potentially unlock more synergies through cross-selling and supply chain integration,” she said.

Alibaba also announced that deputy chief financial officer Toby Xu will replace Maggie Wu as chief financial officer starting in April, describing her appointment as part of the company’s leadership succession plan. Xu joined Alibaba from PWC three years ago.

The Hong Kong-listed e-commerce giant’s shares fell 6% in morning trading, tracking Friday’s declines in the United States.

Shares of U.S.-listed Chinese companies fell on concerns about tighter regulatory scrutiny in the country following Didi Global Inc.’s plans to delist the company from the New York Stock Exchange.

Hit by weaker economic growth and fierce competition from a slew of rivals, Alibaba last month cut its forecast for annual revenue growth on Nov. 18, 2021, at the slowest pace since its 2014 IPO. It also noted that sales at its flagship event, the online shopping festival Singles Day, grew at its slowest ever https://www.reuters.com/technology/chinas-alibaba-kicks-off-final-hours-singles-day-shopping -event-2021-11-10.

Chinese regulators have also cracked down on the technology and other sectors, particularly on antitrust issues, leading Alibaba to abandon a policy requiring sellers to set up shop exclusively on its platforms. In April, the company was fined a record 18 billion yuan ($2.8 billion) for abusing its dominant market position.

($1 = 6.3686 Chinese yuan)

(Reporting by Brenda Goh in Shanghai and Scott Murdoch in Hong Kong; Additional reporting by Akriti Sharma in Bengaluru; Editing by Edwina Gibbs)