Alibaba Group announced a new organizational structure for the former Taobao Tmall business. A new Industry Operation and Development Center, Platform Strategy and Operation Center, and User Operation and Development Center will be set up.
On January 6, Alibaba Group’s President of China’s digital business segment, Dai Shan, released an internal letter announcing the new organizational structure of the former Taobao Tmall business. The new structure will “fully focus on user experience and customer value, eliminate inertia and encourage institutional innovation”.
One of the most concerning adjustments is that, on the basis of the dual brand operation of Taobao and Tmall, a new Industry Operation and Development Center, Platform Strategy and Operation Center, and User Operation and Development Center will be set up, respectively, by relevant personnel, reported directly to Dai Shan.
In terms of innovative business, the heads of content ecology such as live streaming and GuangGuang also report directly to Dai Shan, which also reflects the importance Ali attaches to these two businesses.
The establishment of three new centers means that the two core businesses of Ali’s e-commerce, Taobao and Tmall, are fully integrated in the background. After this round of adjustments, the Greater Taobao will form a unified platform mechanism to ensure a simpler and smoother shopping experience for consumers and more certainty for the development and growth of small and medium-sized merchants.
On January 1, Ali China’s digital commerce segment was officially established, with Dai Shan representing Ali Group in charge of the Greater Taobao (including Taobao, Tmall and Ali Mama), B2C retail and other layers of the organization.
Alibaba’s financial report shows that as of September 30, 2021, there are 953 million annual active consumers from the Chinese market in the Alibaba ecosystem. Monthly active users (MAUs) in the Chinese retail market reached 946 million, an increase of 65 million from the same period the previous year.
Analysts believe Alibaba will further consolidate and strengthen consumer mindsets and create greater certainty of growth opportunities for different types of merchants as the Taobao-Tmall business converges, merchant services and consumer experiences are upgraded, and live streaming and content-based businesses are further strengthened.