Alibaba's e-commerce platforms, including Taobao, Tmall Group, and Alibaba International Digital Commerce, are integrating under a single business unit to be called Alibaba Ecommerce Business Group.
Alibaba International runs Alibaba.com, AliExpress, Lazada, Trendyol (its Turkish e-commerce platform), and Cainiao Group (its logistics division).
The merger marks the first time that the group's domestic Chinese e-commerce group and its international e-commerce platforms will be integrated. Alibaba International Digital Commerce chief Jiang Fan has been appointed to lead the new unit, reporting to Alibaba Group Chief Executive Eddie Wu.
The new group will be tasked with expanding market access for merchants to reach new buyers and expand their businesses globally, and enhancing supply chain integration by using Alibaba's resources, insights, and logistics platforms to create more synergies across its global supply chains.
Alibaba said when announcing the new structure:
“This decision reflects Alibaba’s unwavering commitment to investing in its core commerce business and enhancing the quality of operations to win in the highly competitive ecommerce sector. [The new group] creates significant new synergies across global supply chains and supports small and midsized enterprises to expand their markets in China and internationally.”
“Ecommerce business models within China and internationally are transitioning into a new phase where expertise in global supply chains, fulfillment, and the ability to provide quality online shopping experience will dictate competitive success.”
Alibaba may be the OG of US-China marketplaces, but with this merger and other recent internal changes, the company is telling the world — we're not done yet!
If the US does in fact abolish the de minimis loophole for Chinese retailers, Alibaba has a competitive advantage on B2B relations between US retailers and Chinese manufacturers, and retail competitors will be forced to play catch up.