Alibaba's business abroad has become a savior for the company amidst stagnation in its domestic market in China. Several Alibaba business units operating overseas have reported quite encouraging revenues.
One of them is the e-commerce business, Alibaba International Digital Commerce Group (AIDC), which includes AliExpress, Lazada, Daraz, and Trendyol. In the last quarter of December, it recorded a 44% increase from the previous year.
This figure is quite impressive compared to the local e-commerce platforms Taobao and Tmall Group operating in China. Their revenue stood at US$18.1 billion, growing only by 2% over the year, as reported by CNBC International on Tuesday (20/2/2024).
The growth in sales in these overseas e-commerce businesses is not accompanied by a rise in losses. This is due to increased investment in businesses, including AliExpress Choice and Trendyol.
Recently, companies under AIDC have also undergone leadership reshuffles and layoffs in their overseas business. Daraz, a Pakistani e-commerce platform, replaced its CEO from Bjarke Mikkelsen to James Dong, who previously served as CEO of Lazada Group.
"Dong will strive for deeper integration between Daraz and similar companies," the company stated.
Meanwhile, Lazada reportedly carried out mass layoffs in early January. The policy affected companies across Southeast Asia and all levels up to senior management.
Lazada's layoffs occurred in all departments, impacting commercial, retail, and marketing divisions, according to CNBC International.
Regarding these massive dismissals, Alibaba International stated that the aim was to simplify decision-making processes. Additionally, it aimed to enhance organizational efficiency and business operations.
It is known that Alibaba has been facing challenges, especially since the departure of its founder, Jack Ma, due to issues with the Xi Jinping government. One of Alibaba's business units even failed to IPO at that time. Furthermore, Alibaba faces fierce competition from several new players, with Pinduoduo (PDD) being one of the most prominent competitors.