Published -June 15th, 2023 @ 4:49 PM (GMT+2 )
Alibaba's European Expansion Announcement
E-commerce titan Alibaba Group has announced a strategic shift towards prioritizing growth in Europe as part of its plans to foster local businesses and e-commerce platforms beyond the Chinese market. The declaration was made by Alibaba's President, J. Michael Evans, at a technology conference in Paris on Thursday.
Implementing TMall in Europe
Evans emphasized the company's new focus, revealing that Alibaba's flagship platform TMall, which has achieved significant success in China, will be brought to Europe. He said, "Moving forward, our focus will be on nurturing local businesses. Therefore, we'll introduce TMall to Europe, where it will cater to local brands and customers in their respective markets."
European Expansion Begins with Spain
He further disclosed that the company has already kickstarted its European expansion with a pilot project in Spain. This venture is slated to be scaled up across the continent.
Restructuring Amid Regulatory Scrutiny
Earlier in March, Alibaba (NYSE:BABA) disclosed a corporate restructuring plan that involves a split into six units. The company also indicated exploring fundraising or listing for most of these units. This decision follows a two-year-long regulatory scrutiny faced by the Chinese tech sector.
E-commerce Business
Regarding e-commerce, Alibaba will bifurcate its business to concentrate separately on its domestic e-commerce marketplaces and international ones. The overseas segment includes the likes of Lazada, a popular platform in Southeast Asia, and AliExpress.
In China, Alibaba's Taobao and TMall hold a commanding position as the country's primary e-commerce marketplaces.
Jack Ma, The Invisible Hand
On the topic of Alibaba's founder, Jack Ma, Evans confirmed that despite Ma's withdrawal from public life in late 2020 after criticizing China's regulatory system, he remains the largest shareholder in Alibaba and continues to care deeply for the company.
Jack Ma's Journey and Commitment to Alibaba
Evans also shed light on Ma's whereabouts, revealing that after leaving mainland China in late 2021, Ma visited various countries, including Japan, Spain, Australia, and Thailand, but returned in March, just before Alibaba announced its restructuring. Ma has refrained from public comments since his return.
According to Evans, "Jack is alive, well, and content. He is lecturing at a university in Tokyo and spending more time in China. As Alibaba's biggest shareholder, his commitment to the company is as strong as when it was founded. I anticipate this will remain unchanged as long as Jack Ma and Alibaba coexist."
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