Alibaba Group (BABA) announced on Thursday that it is merging its domestic and international e-commerce platforms into a unified business unit. The Chinese e-commerce major announced the creation of the Alibaba E-commerce Business Group, which will bring together the Taobao and Tmall Group with the Alibaba International Digital Commerce (AIDC) Group.
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Alibaba Merges Its Domestic & International E-Commerce Platforms
The new unit will include key platforms like AliExpress, wholesale marketplace Alibaba.com, and regional sites spanning markets from Southeast Asia to Turkey. Furthermore, Jiang Fan, a former head of Tmall, has been appointed to lead the group. Jiang will report directly to Group CEO Eddie Wu.
He stated in a letter on the company’s Intranet, “The e-commerce industry in China and around the world is entering a new era, and the global supply chain capabilities, fulfillment capabilities, and consumer service capabilities will determine the future competitive landscape.”
Why Is BABA Reorganizing Its Business Segments?
The company’s e-commerce platforms have been under pressure in China and in international markets due to the rising competition from domestic players like PDD Holdings (PDD). This restructuring follows Alibaba’s decision in 2023 to split into six independent business units.
By consolidating its e-commerce operations, Alibaba is looking to position itself for long-term growth.
Is BABA Stock a Good Buy?
Analysts remain bullish about BABA stock, with a Strong Buy consensus rating based on 15 Buys and one Hold. Over the past year, BABA has increased by more than 10%, and the average BABA price target of $126.80 implies an upside potential of 46.1% from current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
