<div id="readability-page-1"><div>Alibaba Group Holding BABA announced plans to consolidate its domestic and international e-commerce operations into a single unit called Alibaba E-commerce Business Group.The newly created division will be led by Jiang Fan, the current head of Alibaba International Digital Commerce, who has been the group’s CEO. He will report directly to Alibaba CEO Eddie Wu Yongming, SCMP reports.Also Read: Temu Parent PDD Stock Tumbles After Q3 Profit Miss, Company Cites Intensified Competition and External ChallengesThe reorganization marks Alibaba’s most significant structural overhaul since the company split its operations into six independent business units in 2023.This move is seen as a strategic effort to streamline operations and improve synergies between domestic and international supply chains, particularly as the company faces intensifying competition from rivals such as PDD Holdings Inc PDD, which has aggressively expanded globally with its shopping app Temu.Jiang’s leadership in the international division has already demonstrated significant growth.Alibaba has been actively realigning its business strategy under CEO Eddie Wu, who took over leadership in 2023.Recent initiatives include launching a digital marketing tool, Quanzhantui, and implementing technology service fees for Taobao and Tmall merchants. These measures aim to revitalize its domestic operations while maintaining its global expansion trajectory.During the recently concluded Singles’ Day shopping festival, Taobao and Tmall accounted for roughly 50% of sales across major platforms, while Douyin led growth with a 19% increase in gross merchandise value.Alibaba reported fiscal second-quarter 2024 revenue growth of 5% year-on-year to $33.70 billion, beating the analyst consensus of $33.47 billion.Taobao and Tmall Group revenue grew by 1% to $14.11 billion. Alibaba International Digital Commerce Group revenue increased by 29% to $4.51 billion, driven by the growth of cross-border businesses.Benchmark’s Fawne Jiang maintained a Buy rating on Alibaba with a price target of $118, citing mixed earnings performance.While customer management revenue grew 2.5% YoY, sluggish GMV growth and increased investments in Taobao and Tmall raise concerns over market share retention. The analyst expects improved monetization from software service fees and expanded Quanzhantui marketing use in upcoming quarters, aiding profitability. Fiscal 2025 revenue and EBITDA estimates were slightly reduced due to margin pressures but reflect confidence in the gradual recovery and user acquisition.Price Action: BABA stock is down 0.99% at $85.91 at the last check on Thursday.Also Read:<ul><li>Warner Music Q4 Earnings: Flat Digital Revenue Growth, Operating Cash Flow Falls</li></ul>Photo Via Shutterstock</div>This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.</div>

89988

09988

BABA

Alibaba Group is merging its domestic and international e-commerce units into the Alibaba E-commerce Business Group, led by Jiang Fan. This reorganization aims to streamline operations and enhance growth amid competition from PDD Holdings. The move marks Alibaba's most significant structural change since 2023. Recent initiatives under CEO Eddie Wu include launching a digital marketing tool and implementing service fees for merchants. Despite a 5% revenue growth in Q2 2024, concerns remain over market share retention. BABA stock is down 0.99% at the last check.

- Alibaba Group Holding announced the consolidation of its domestic and international e-commerce operations into the Alibaba E-commerce Business Group, led by Jiang Fan.  
- This reorganization aims to streamline operations and enhance synergies amid increasing competition, particularly from PDD Holdings.  
- Despite a 5% year-on-year revenue growth in Q2 2024, concerns remain over market share retention and profitability, prompting slight reductions in revenue and EBITDA estimates for fiscal 2025.

Alibaba Reshapes E-Commerce Operations, Names Jiang Fan as Unit CEO