The Taobao and Tmall Group will merge with the Alibaba International Digital Commerce Group, which oversees cross-border services such as AliExpress, the business-to-business platform Alibaba.com, and regional platforms across Turkey and Southeast Asia, resulting in the formation of the new organisation named Taobao and Tmall Group.
Alibaba's 2023 strategy involves dividing its operations into six distinct business divisions, marking the most significant transformation in the company's history. This restructuring was initiated by Eddie Wu, who previously managed Alibaba's cloud services along with the Taobao and Tmall Group, aiming to upgrade both competitiveness and efficiency.
The company faces intensified competition from local and international players. Rivals such as ByteDance's Douyin and TikHub, as well as PDD Holdings (PDD, Financials), which operates Pinduoduo and the foreign platform Temu, have gained market share by offering low-cost products.
The challenging consumer environment in China has further intensified the competition among online retailers. Representatives pointed out a remarkable 29% year-over-year growth in the September quarter, indicating that the rapid expansion of the foreign business reflects the success of the reorganisation efforts. Additionally, the company noted that due to government economic stimulus initiatives in September, Singles Day sales this year exceeded expectations.
However, it did not disclose specific sales figures, instead describing the event as a success with strong growth and a record number of visitors. Alibaba continues to navigate a competitive landscape while striving to increase its market position and streamline operations.
In September 2024, Alibaba revealed that its main ecommerce platforms, Taobao and Tmall, accept payments through Tencent's WeChat app.
In the past, Alibaba's Chinese ecommerce websites had restricted payment choices, mainly promoting Alipay, which is operated by Alibaba's affiliate, Ant Group, as the preferred payment method.
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