Alibaba Group announces new CEO and Chairman
Alibaba Group, the Chinese e-commerce giant, has announced a major executive reshuffle as part of its restructuring plan. The company said that Eddie Yongming Wu, the chairman of its Taobao and Tmall Group, will succeed Daniel Zhang as the chief executive officer of Alibaba Group, effective from September 10, 2023. Zhang will continue to serve as the chairman and CEO of Alibaba Cloud Intelligence Group, the company’s cloud computing and artificial intelligence unit.
Wu is one of the co-founders of Alibaba Group and a member of the Alibaba Partnership, a group of senior executives who have the right to nominate a majority of the board of directors. He joined Alibaba in 1999 as its first programmer and has held various leadership roles in the company, including chief technology officer of Alipay, general manager of Alimama, chief technology officer of Taobao, and head of Alibaba’s search, advertising and mobile business. He also founded Vision Plus Capital, a venture capital firm focused on investing in advanced technologies, enterprise services and digital healthcare.
Wu’s appointment as the new CEO of Alibaba Group comes amid the company’s restructuring into six separate business groups, each operating like a holding company and with their own board of directors. The six business groups are: Alibaba Cloud Intelligence, Taobao Tmall Business, International Digital Commerce, Local Life, Cainiao, and Dawen Entertainment.
Alibaba Group faces regulatory challenges and competition
The executive reshuffle and restructuring of Alibaba Group are seen as the company’s response to the regulatory challenges and competitive pressures it faces in China and abroad. Alibaba Group has been under intense scrutiny by Chinese authorities since 2020, when its founder and former chairman Jack Ma publicly criticized the country’s financial regulation system. Since then, Alibaba Group has faced a series of investigations and penalties from the government, including a record $2.8 billion fine for violating anti-monopoly laws, a suspension of its fintech affiliate Ant Group’s IPO, and a crackdown on its media assets .
In addition to the regulatory hurdles, Alibaba Group also faces fierce competition from its rivals in the e-commerce and cloud computing sectors, such as JD.com, Pinduoduo, Tencent, ByteDance, and Huawei. Alibaba Group’s e-commerce business, which accounts for about 80% of its total revenue, has seen its market share decline in recent years, as more consumers opt for lower-priced and social-oriented platforms. Alibaba Group’s cloud business, which is the largest in China and the fourth-largest in the world, has also faced challenges from domestic and foreign competitors, as well as rising costs and security concerns .
Alibaba Group aims to innovate and grow in the new era
Despite the difficulties and uncertainties, Alibaba Group remains optimistic and ambitious about its future prospects. The company said that the executive reshuffle and restructuring are aimed at enhancing its innovation capabilities and growth potential in the new era. The company also said that it will continue to uphold its mission of “making it easy to do business anywhere” and its vision of “building the future infrastructure of commerce”.
Wu, the new CEO of Alibaba Group, said that he is honored and humbled to take on the role and that he will work closely with Zhang, the chairman of Alibaba Cloud Intelligence Group, and Joseph Tsai, the co-founder and executive vice chairman of Alibaba Group, who will also become the group chairman in September. Wu said that he will focus on strengthening Alibaba Group’s core e-commerce business, which includes Taobao, Tmall, AliExpress, Lazada, and Daraz, and that he will leverage the synergies and innovations from the other business groups.
Zhang, the outgoing CEO of Alibaba Group and the incoming chairman and CEO of Alibaba Cloud Intelligence Group, said that he is confident and excited about the new leadership team and that he will dedicate his full attention and energy to the cloud and AI business, which he believes is the key driver of Alibaba Group’s long-term growth and value creation. Zhang said that he will work with Wu and Tsai to ensure a smooth transition and a strong collaboration among the six business groups.
Tsai, the co-founder and executive vice chairman of Alibaba Group and the future group chairman, said that he is proud and grateful for the achievements and contributions of Zhang and Wu, and that he will support them in their new roles and responsibilities. Tsai said that he will oversee the overall strategy and governance of Alibaba Group, and that he will focus on enhancing the company’s social responsibility, sustainability, and stakeholder relations.
