This new entity, named the Alibaba E-commerce Business Group, will encompass both the Taobao and Tmall Group as well as the Alibaba International Digital Commerce (AIDC) Group.
The AIDC includes cross-border platform AliExpress, the wholesale B2B site Alibaba.com, and various regional platforms operating globally, from Southeast Asia to Turkey.
Jiang Fan, who previously led Tmall and faced a demotion in 2020 following an online controversy, has been appointed to head this new unit, reporting directly to Alibaba Group's Chief Executive, Eddie Wu.
Wu communicated the establishment of this business unit in a letter to employees shared on Alibaba's intranet.
He noted, "The e-commerce sector in China and worldwide is entering a transformative phase, where global supply chain capabilities, fulfillment efficiency, and consumer service excellence will shape the future competitive environment," as reported by Reuters.
In 2023, Alibaba underwent a major reorganization, dividing into six distinct business units, marking the most significant change in its 24-year history. Before this latest consolidation, Wu had also served as CEO of both the Taobao and Tmall Group and Alibaba's cloud division.
Alibaba's e-commerce platforms have faced increasing competition domestically and internationally from aggressive newcomers like PDD Holdings' Pinduoduo and the international platform Temu, as well as ByteDance's Douyin and TikTok, which are capturing market share with low-cost offerings.
In April, co-founder Jack Ma expressed his backing for the company's restructuring initiatives and acknowledged previous missteps in a detailed memo to staff.
The restructuring efforts have shown promise, with the international division experiencing rapid growth under Jiang's leadership. In the earnings report for the September quarter, AIDC recorded impressive growth of 29%.
China's difficult consumer landscape has exerted pressure on all retail and e-commerce platforms, yet Alibaba seems to have stabilized its market share lead in recent quarters.
Following the government's announcement of economic stimulus measures in September, this year's Singles Day sales festival, the largest shopping event in China, exceeded analysts' subdued forecasts.
While Alibaba did not reveal specific sales figures for the nearly month-long event, it reported "strong growth" in sales along with a record number of shoppers.