Alibaba Group announces “significant governance overhaul”
Alibaba Group announced last week that it will reorganise into six business groups and other investments, a move designed to unlock shareholder value and foster market competitiveness.
Daniel Zhang will continue to serve as Chairman and CEO of Alibaba Group, which will follow a holding company management model, while each of the six business groups will be managed by its own CEO and board of directors.
The move marks the most significant governance overhaul in the platform company’s 24-year history and positions Alibaba’s businesses to capture market opportunities and further stimulate growth.
“The market is the best litmus test, and each business group and company can pursue independent fundraising and IPOs when they are ready,” said Zhang in an email to Alibaba employees.
The six business clusters will be:
- Cloud Intelligence Group
- Taobao Tmall Commerce Group
- Local Services Group
- Cainiao Smart Logistics
- Global Digital Commerce Group
- Digital Media and Entertainment Group
Each CEO will report to a board of directors and assume full responsibility for company performance. Zhang will also serve as the CEO of the Cloud Intelligence Group, as previously announced. This group will house all cloud, artificial intelligence activities, and businesses like DingTalk.
Taobao Tmall Commerce Group with be led by Alibaba veteran Trudy Dai and will include China commerce activities such as digital marketplaces Taobao and Tmall, value-for-money platform Taobao Deals, community marketplace business Taocaicai, wholesale marketplace 1688.com and other businesses.
The Global Digital Commerce Group, will be headed by Jiang Fan as CEO and span international commerce businesses Lazada, AliExpress, Trendyol, Daraz and Alibaba.com.
Meanwhile, Fan Luyuan will be CEO of Digital Media and Entertainment Group, inclusive of China’s third-largest online long-form video platform Youku, Hong Kong-listed Alibaba Pictures and other businesses.