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Tag: Alibaba

  • Alibaba to double investment in Vietnam

    Alibaba to double investment in Vietnam

    Alibaba.com, the global business-to-business e-commerce platform of Chinese tech giant Alibaba, will double its investment in emerging manufacturing centers in Vietnam and additionally hire hundreds of employees.

    In the next three years, Alibaba.com will complete the establishment of specialized teams to operate in Vietnam’s emerging manufacturing hubs, including Binh Duong, Bac Ninh, Long An, Da Nang and Hai Phong, in addition to the teams already operating in Hanoi and Ho Chi Minh City, Roger Luo, director of Alibaba in Asia-Pacific, announced recently in Ho Chi Minh City.

    “Vietnam is a very important part of our e-commerce development map,” Luo said, pointing out three advantages of this market.

    First, Vietnam has favorable foreign trade policies with many free trade agreements being signs. “Compared to China, Vietnamese-made goods have an advantage. Moreover, the U.S.-China trade war has big influence on Chinese goods, while Vietnamese goods are not affected,” he said.

    Second, labor costs are still low. Third, there are many Vietnamese specialty products.

    “Vietnamese suppliers on our platform are gradually building a reputation with a large number of global buyers, especially in such areas as agricultural products, food, fashion and home garden products,” he said.

    The number of Vietnamese sellers on Alibaba’s e-commerce platform has increased to thousands.

    The number of Vietnamese products available on this platform in March surged by 24% against the same period last year.

    In the first half of this year, Vietnam’s export turnovers stood at US$164 billion, down 12% against the same period last year.

    The situation would be better in the second half of the year because inventory in the U.S. is decreasing.

    “Small and medium-sized businesses need to quickly seize this opportunity by reviving their human resources and strengthening their digital capabilities,” he recommended.

  • Daniel Zhang steps down from top Alibaba Group

    Daniel Zhang steps down from top Alibaba Group

    Alibaba Group has appointed Joseph C Tsai and Eddie Yongming Wu as the company’s new chairman and CEO respectively, marking the group’s one of the most significant organisational changes.

    The appointments will take effect on September 10. Tsai and Wu will succeed Daniel Zhang, who will continue to lead Alibaba Cloud Intelligence Group as chairman and CEO.

    “This is the right time for me to make a transition, given the importance of Alibaba Cloud Intelligence Group as it progresses towards a full spin-off,” said Daniel Zhang, chairman and CEO of Alibaba Group. “The emergence of generative AI has also opened up exciting new opportunities that Alibaba Cloud Intelligence Group is well-positioned to capture.”

    “Daniel has made exceptional contributions to the development of Alibaba Group since joining the company in 2007,” said Tsai, executive vice chairman of Alibaba Group. “He demonstrated extraordinary leadership in navigating unprecedented uncertainties affecting our business over the past few years.”

    Alibaba Group’s newly appointed CEO Yongming Wu, one of the group’s co-founders aside from Jack Ma and Tsai, will continue to concurrently serve as chairman of Taobao and Tmall Group. Wu was the technology director of Alibaba at the company’s inception in 1999. He founded Vision Plus Capital, a venture capital firm focused on investing in advanced technologies, enterprise services and digital healthcare in 2015.

    “Eddie was instrumental in architecting our technology platforms and guiding our strategic direction,” Tsai said. “He led the creation of our proprietary monetization platform on Taobao and Tmall, and drove the launch of the Mobile Taobao App to propel our company to the mobile-first era.”

    The group said last Thursday it is shifting its focus to building local businesses and online platforms outside of China with Europe as the top priority.

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  • Alibaba aims to expand local business in Europe

    Alibaba aims to expand local business in Europe

    Alibaba Group will make Europe top priority as it focuses on building local businesses and online platforms outside China, the president of the e-commerce giant said on Thursday.

    “What we will focus more for the future is to build local businesses, so you will see something called TMall which we have in China become TMall in Europe, which means we will serve local brands and local customers in local markets,” J. Michael Evans told a technology conference in Paris.

    “We have started with a pilot project in Spain which we will expand across Europe,” he said.

    Alibaba announced in March it would split into six units and explore fundraising or listings for most of them, following a two-year regulatory crackdown on China’s tech sector.

    Its e-commerce business is to be split, with one side covering Alibaba’s domestic-facing e-commerce marketplaces and the other its overseas e-commerce marketplaces such as Lazada, which serves Southeast Asia, and AliExpress.

    Taobao and TMall are China’s dominant e-commerce marketplaces in China.

    Asked about Alibaba founder Jack Ma, China’s best known entrepreneur who withdrew from public view in late 2020 after giving a speech criticising China’s regulatory system, he said Ma remained Alibaba’s biggest shareholder and still cared very much about the company.

    Ma left mainland China in late 2021 for stints in Japan, Spain, Australia and Thailand, according to photographs, but returned in March a day before Alibaba announced its restructuring. He has not made any public comments during that period.

    “Jack is alive, he is well, he is happy. He is teaching at a university in Tokyo and spending more time in China,” Evans said.

    “He is the largest shareholder at Alibaba. This is his company, he cares as much about this company today as he did when he started it and I expect this to continue for as long as Alibaba and Jack Ma are here.”

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  • Alibaba group net income soars over 130% in December quarter

    Alibaba group net income soars over 130% in December quarter

    This is despite softer demand as well as supply chain and logistics disruptions.

    Alibaba Group Holdings reported its net income attributable to ordinary shareholders grew by 138% to US$6.78b in the quarter ending in December 2022.

    The company attributed this to the decrease in impairment of goodwill linked to Digital media and entertainment segment.

    “During the past quarter, we continued to improve operating efficiency and cost optimization that resulted in robust profit growth,” Toby Xu, Chief Financial Officer of Alibaba Group, said. “Our net cash position remains strong and we continue to generate healthy cash flow. During the quarter ended December 31, 2022, we repurchased 45.4 million ADSs for approximately US$3.3b under our share repurchase program as part of our ongoing commitment to improve our shareholder return.”

    Over the same period, Alibaba noted its revenue rose by 2% year-on-year to US$35.92b.

    “We delivered a solid quarter despite softer demand, supply chain and logistics disruptions due to impact of changes in COVID-19 measures,” Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group, said.

    “Looking ahead, we expect continued recovery in consumer sentiment and economic activity. We are focused on driving growth for our customers amid the competitive landscape, and creating sustainable, longterm value for our shareholders.”

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  • Tmall launches perfume advising services

    Tmall launches perfume advising services

    Alibaba’s online business-to-consumer retail platform Tmall has launched a perfume advising service, seeking to help consumers with perfume selection and use, the e-commerce giant said in a news release.

    Yves Saint Laurent, Valentino and Prada have piloted the service on their Tmall flagship stores, allowing its customers to chat with “certified perfume consultants,” receive advice on picking a daily scent or receive gifting tips.

    Close to 200 consumers tried out the service on its launch, including many male consumers buying perfumes for Valentine’s Day, the company said.per

    More brands plan to roll out the service in the coming months, said Alibaba

  • Alibaba tests ChatGPT-style tool as AI buzz intensifies

    Alibaba tests ChatGPT-style tool as AI buzz intensifies

    Alibaba Group on Wednesday said it is developing a ChatGPT-style tool that is currently in internal testing, joining a race by tech companies globally to show they are up to speed on generative artificial intelligence (AI) developments.

    The Chinese e-commerce group’s statement came after the 21st Century Herald newspaper reported that Alibaba is developing a ChatGPT-like dialogue robot which is currently open to employees for testing.

    When asked about the newspaper report, which also said that Alibaba might combine the technology with the group’s communication app DingTalk, Alibaba declined to comment.

    The company said it had been focused on large language models and generative AI for a number of years. Large language models are natural language processing systems which are trained on massive volumes of text, and are capable of answering and comprehending questions as well as generating new text.

    Alibaba’s US-listed shares rose 3.2 per cent premarket after the news.

    Shares in a number of other Chinese AI technology companies have soared in the past few days due to investor excitement over Open.Ai’s ChatGPT, which can generate articles, essays and jokes in response to prompts and has been rated the fastest-growing consumer app in history.

    Shares in Chinese search engine giant Baidu jumped by 15 per cent on Tuesday after it said it planned to complete testing of its “Ernie bot” in March. Google owner Alphabet Inc is also planning its own chatbot service and said it will use more artificial intelligence for its search engine.

    Microsoft, which owns Open.AI, plans to tie ChatGPT in with its search engine Bing.

    On Wednesday, another Chinese tech group JD.com said it was looking to integrate some methods and technology similar to ChatGPT’s into some of its products, such as its e-commerce platform’s customer service.

    A source familiar with NetEase told Reuters that the Chinese gaming company plans to deploy similar large language models technology to serve its education business.

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  • Alibaba plans $1 billion investment in Turkey

    Alibaba plans $1 billion investment in Turkey

    Chinese e-commerce giant Alibaba Group Holding Ltd is planning a logistics hub at Istanbul Airport and a data centre near the Turkish capital Ankara with an investment of more than $1 billion, its president, Michael Evans, was cited as saying.

    Turkey’s Sabah newspaper reported Evans as saying in an interview that the company was looking to invest in Europe and the Middle East and that he sees Turkey as a very strong production base.

    “We have a serious investment plan at Istanbul Airport. We can evaluate e-export plans from here to Europe, the Middle East and the Far East. We plan an investment of more than $1 billion,” Evans was quoted as saying.

    Trendyol, one of Turkey’s best known e-commerce platforms, is backed by Alibaba.

    “The reason we chose Trendyol was that its technology was advanced and its potential was great. We are positioning this place as a base for Europe and the Middle East,” he said.

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  • Land compensation for Alibaba victims unlikely

    Land compensation for Alibaba victims unlikely

    Victims of property firm Alibaba, which faces fraud accusations, are unlikely to get compensation in land since the projects it advertised were nonexistent, lawyers familiar with the case said.

    Obtaining cash compensation would be time-consuming due to a large number of victims, they said.

    The Ho Chi Minh City’s People’s Court has identified around VND1.6 trillion ($67.7 million) worth of assets related to allegedly fraudulent activities carried out by Alibaba leadership, namely the company of chairman Nguyen Thai Luyen and his wife Vo Thi Thanh Mai.

    The couple have been accused of fraud and money laundering in relation to 58 property projects in three southern localities. The VND1.6 trillion in question was allegedly obtained by selling illegal and/or non-existent land projects to 4,000 alleged victims.

    This VND1.6 trillion could be used to compensate the victims, said lawyer Truong Anh Tu, but he emphasized that the complex process of distributing the restitution to thousands of allegedly defrauded people – each with their own claims – would be complicated and extremely difficult to put into practice and complete.

    Tu said that some victims are demanding they be compensated with land, meaning they still want to receive land that they bought from Alibaba as part of what were advertised and sold as residential development projects.

    The problem is that Alibaba had no right to sell them the land in the first place. Even though the properties were sold as part of “residential development projects,” the land sold was actually zoned as agricultural land, a fact that can’t be overturned to compensate the alleged victims.

    In Vietnam, agricultural land is eligible only for agriculture. It can’t be sold as anything else and nothing non-agricultural may be built on it without undergoing a long process of rezoning via the process of applying for approval with the government.

    “The contracts that the victims signed are void because they bought into fake residential projects that were made up. They are not real,” Tu said.

    However, many of those who bought land from Alibaba say they still want to use it for the residential development projects that were advertised to them.

    But attorney Vo Dan Mach from Ta Pha Law Firm said the alleged victims can’t use the land they bought for residential development projects because the projects that Alibaba presented to them exist only on paper.

    He added that another major problem is also that because the majority of accusers are actually seeking cash compensation, the VND1.6 trillion in assets simply won’t be enough to compensate all 4,000 of them.

    “Figuring out a way to divide this figure for over 4,000 victims will be complicated,” he said.

    Alibaba was established in 2016 by Luyen, who also formed 22 subsidiaries to invest in 58 residential projects in the southern provinces of Dong Nai, Ba Ria – Vung Tau and Binh Thuan.

    Investigators have concluded that these projects were fake. On paper, each of the projects was attached to agricultural land ineligible for development. But Luyen and his staff advertised and sold them as residential development investments, all the while knowing that launching such developments on agricultural land would be impossible.

    Luyen ordered his employees to illegally collect nearly VND2.4 trillion from 4,560 customers, of which investigators were able to contact 4,065 who had invested a total of VND2.1 trillion.

    A ruling on the case is set to be announced Thursday.

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  • Alibaba to apply for primary listing in Hong Kong

    Alibaba to apply for primary listing in Hong Kong

    Alibaba will apply for a primary listing in Hong Kong and keep its US listing, the first big company to take advantage of a rule change allowing high-tech Chinese firms with dual-class shares to seek dual primary listings in Hong Kong.

    Shares in Alibaba rose 4 percent in Hong Kong upon market opening in response to the news.

    Already present on the Hong Kong bourse with a secondary listing since 2019, Alibaba said it expects the primary listing to be completed by the end of 2022. Chief Executive Daniel Zhang said the dual listing would foster a “wider and more diversified investor base.”

    Seeking a dual primary listing will also allow Alibaba to apply for the Stock Connect scheme that will permit Chinese mainland investors to buy the company’s shares more easily.

    The move comes after the Hong Kong Stock Exchange in January changed its rules to allow innovative Chinese companies with weighted voting rights or variable interest entities (VIE) to carry out dual primary listings in the city.

    Under a VIE structure, a Chinese company sets up an offshore entity for overseas listing purposes that allows foreign investors to buy into the stock.

    “Hong Kong is also the launchpad for Alibaba’s globalization strategy, and we are fully confident in China’s economy and future,” Alibaba CEO Zhang said in a statement.

    Alibaba listed on the New York Stock Exchange in September 2014, marking what was at the time the largest IPO in history.

    In order to switch to a dual primary listing, the HKEX said companies had to have a good track record of at least two full financial years listed overseas, and a capitalization of at least HK$40 billion (US$5.10 billion) or a market value of at least HK$10 billion plus revenue of at least HK$1 billion for the most recent financial year.

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  • China regulator fines Alibaba, Tencent for disclosure violations

    China regulator fines Alibaba, Tencent for disclosure violations

    China has imposed fines on technology giants Alibaba and Tencent, as well as a range of other firms for failing to comply with anti-monopoly rules on the disclosure of transactions, the country’s market regulator, said on Sunday.

    The State Administration for Market Regulation (SAMR) released a list of 28 deals that violated the rules. Five involved units of Alibaba, including a 2021 purchase of equity in its subsidiary, the Youku Tudou streaming platform.

    Tencent was involved in 12 of the transactions on SAMR’s list.

    The firms could not immediately be reached for comment. China’s tech sector has been one of the main targets of a crackdown on monopolistic practices that started in late 2020.

    Under the anti-monopoly law, the maximum potential fine in each case stands at 500,000 yuan ($74,688).

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  • Alibaba tipped to take Lazada to Europe

    Alibaba tipped to take Lazada to Europe

    Chinese tech giant Alibaba is taking Lazada to Europe as part of its strategy to drive growth in overseas countries.  It was reported that the plan to expand Lazada to Europe was due to Alibaba’s slowing opportunities in China.

    The company’s latest interim report published in December 2021 unveiled that its revenue from its China commerce retail business for the six months ended on 30 September 2021 was US$40.8 billion, an increase of 33% compared to US$29.7 billion for the same period of 2020. However, revenue from international commerce retail business for the same period last year was US$3.29 billion, a year-on-year increase of 43% compared to US$2.23 billion for the same period of 2020.

    When it comes to wholesale business, revenue in China for the six months ended on 30 September 2021 was US$1.26 billion, an increase of 14% compared to the same period of 2020. The increment was better in its international business, as the revenue was US$1.42 billion, an increase of 36% compared to the same period of 2020. Reuters’ report said that Lazada will target European vendors, while Lazada Thailand CEO James Dong will help spearhead the initiative. The destination of the expansion is still unknown at the moment. Moreover, Alibaba’s international digital commerce Jiang Fan visited Singapore in April to discuss the plan too.

    The potential expansion plan is Alibaba’s another step to tap into opportunities in Europe. Its logistic arm Cainiao opened a hub in Belgium last November which, reportedly, was the largest of its kind in Europe and a key part of the agreement between the Alibaba Group and the Belgian government concluded in 2018 to join the global Electronic World Trade Platform initiative.  Alibaba’s present in Europe also includes AliExpress, targets consumers looking for goods such as fashion, accessories, computer electronics, toys and tools from Chinese manufacturers.

    Last year, Alibaba reorganised its international and domestic commerce platforms into two units to better drive synergies, including international digital commerce and China digital commerce. International digital commerce brings together Alibaba’s overseas consumer-facing and wholesale businesses under the leadership of Jiang. It will include AliExpress, Alibaba.com, and Lazada. According to Alibaba, these businesses propel its globalisation strategy and the newly-created unit is in line with Alibaba’s goal of serving two billion consumers globally. In its last quarterly earnings, the company said it had reached 285 million annual active consumers overseas.

    Meanwhile, Lazada competitor Shopee also decided to pull out of France, after its foray into Europe. Shopee said that following a short-term, preliminary pilot, the company has decided not to continue the Shopee service in France. It added that other markets are unaffected, and Shopee will continue to adopt an “open-minded and disciplined approach to exploring new markets”.

    Last year, Shopee said that it is looking to grow its presence in Spain with the launch of a new Instagram page. At that point, the expansion into Europe is still in the early stages and that Shopee was understood still testing the waters. Shopee’s strategy to enter the Spanish market came shortly after it announced its expansion plans into Poland.

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  • Taobao creates 10-yuan store for online bargain hunters

    Taobao creates 10-yuan store for online bargain hunters

    Alibaba Group’s marketplace Taobao Deals launched a 10-Yuan Store this week for China’s bargain hunters seeking daily necessities.

    Goods are priced below RMB10 (US$1.57) each at the digital stores, which are similar in concept to dollar stores in the US or pound shops in the UK.

    Taobao Deals also unveiled 100 Store, a marketplace for higher-value products, ranging from cosmetics, fashion accessories to kitchen utensils and toys, but still at a more affordable price point than many name brands.

    The launches are part of Taobao Deals’ efforts to appeal to a variety of shoppers in China’s lower-tier cities in China while streamlining supply chains. In both of the new store concepts, the platform is directly involved in sourcing, quality control, storage and delivery.

    Established in 2020, Taobao Deals had 280 million annual active users in the 12-months ended Dec. 31 last year. Paid orders on the platform grew over 100 per cent year-on-year in the third quarter, according to the group’s latest earnings report.

    “We’ve already reached many consumers in lower-tier cities…our mission is to serve consumers’ needs and create value for consumers,” said Wang Hai, president of Taobao Deals, at an online event held on Wednesday.

    The platform has three product categories: fresh produce sourced directly from farms, daily essentials and household items direct from factories, and trendy apparel direct from brands. 10-Yuan Store and 100 Store on Taobao Deals. Photo credit: Alibaba Group

    Powerful Partnerships

    Taobao Deal’s unique production model is best seen in an ultraviolet toothbrush head sanitizer now available on the 100 Store.

    As sales of electric toothbrushes surged in lower-tier cities in China, the operation team at Taobao Deals reached out to a manufacturer. It partnered to design a sanitizer that uses ultraviolet to sterilize the toothbrush.

    These devices tap the consumption upgrade wave washing across lower-tier cities and rural areas, which masses of merchants are surfing with the help of bargains app Taobao Deals.

    Most of the sellers that co-design products with Taobao Deals are top suppliers from Alibaba’s B2B purchasing and wholesale marketplace 1688.com. They hand over all the sales, marketing, storage and delivery work, cutting operational costs and thus passing this discount on to customers.

    “We pooled our strength to create products that cater to consumers’ needs…while manufacturers are good at production, we have consumer insight and a strong fulfillment network,” said Wang.

    More than 500,000 factories and two million merchants from China’s major manufacturing bases are collaborating with Taobao Deals as of December 2021.

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  • Vietnam launches national pavilion on Alibaba

    Vietnam launches national pavilion on Alibaba

    The Vietnam Pavilion was launched on Chinese e-commerce platform Alibaba.com Friday to globally promote the country’s products and success stories.

    The Vietnam Trade Promotion Agency and the tech giant signed a deal for the purpose. Deputy Minister of Industry and Trade Do Thang Hai said the site would be used for advertising and taking Vietnamese products to customers around the world.

    The pavilion allows visitors to search for Vietnamese suppliers of agricultural and seafood products, furniture, packaging, and home and garden items.

    Vietnam has gained a reputation with global customers thanks to its production capacity, quality of products and competitive pricing, Alibaba deputy director Andrew Zhang said.

    The Trade Promotion Agency said it would coordinate with the platform to organize online advice sessions on exporting via e-commerce sites for over 2,500 Vietnamese small and medium-sized enterprises.

    A similar program was held last year also in partnership with Alibaba for around 2,000 businesses, it added.

    Tran Thi Yen Phi, CEO of Hanoi agribusiness DSW, said her firm’s revenues in the first year after joining Alibaba were US$260,000.

    The business was unaffected by the congestion at the Vietnam-China border thanks to expansion of its market to Japan, the EU and Southeast Asia. “This year we are boosting exports to China under the official quota. Deliveries are delayed by China’s ‘Zero Covid’ policy, but we still be able to operate there,” she said.

    Proline Vietnam, a packaging supplier, said its sales grew by 200 percent last year as it carried out all exports through e-commerce platforms.

  • Alibaba looks abroad as China growth slips

    Alibaba looks abroad as China growth slips

    China’s Alibaba has told its investors that overseas e-commerce would be a key focus as it looks for new sources of growth after a difficult year at home.

    Earlier this month, Alibaba Group Holding restructured its e-commerce business into separate China and international divisions, with the latter to be led by Jiang Fan, head of Alibaba’s flagship Taobao and Tmall marketplaces.

    Alibaba Deputy CFO Toby Xu, making his first major public remarks since being named this month to take over as CFO, said that international e-commerce “will become one of the key growth drivers”, adding that 57 percent of revenue for Cainiao, Alibaba’s logistics unit, comes from overseas.

    Earlier in the two-day investor event which ended Friday, Alibaba said it had set a target of $100 billion in gross merchandise value (GMV) for Lazada, its e-commerce service for Southeast Asia.

    Lazada generated $21 billion in GMV from September 2020 to the same month in 2021, the presentation showed.

    Outgoing CFO Maggie Wu said that In the future, the company will break down the category into four sub-categories – China commerce, which includes its major domestic-facing e-commerce platforms; international commerce, which will include Lazada, AliExpress, and other overseas-facing sites; local-based services, which will include its food-delivery service Ele.me and its mapping service; and Cainiao, its logistics division.

    There was also a nod to social welfare, with four of seven investment categories outlined by Xu related to initiatives such as rural revitalization and China’s aging population.

    CEO Daniel Zhang, meanwhile, pledged to slash emissions from Alibaba’s supply chains and transportation networks by 50 percent by the end of the decade.

    Missing from the presentation was any mention of Ant Group, the financial services firm that is 33-per-cent owned by Alibaba.

    Last year, Beijing intervened at the last minute to abort a planned $37 billion listing of Ant. Alibaba co-founder Jack Ma subsequently slipped from the public spotlight and Chinese authorities began a year-long regulatory clampdown.

    In November, Alibaba slashed its annual revenue forecast for its current fiscal year, from an initial growth target of 29.5 percent to between 20 and 23 percent.

    The company has been facing stiff competition from rivals including Pinduoduo, which has won over consumers in rural China, and ByteDance-owned Douyin, which has grown in China’s booming live-streamed e-commerce sector.

  • Alibaba fires employee who accused former co-worker of sexual assault

    Alibaba fires employee who accused former co-worker of sexual assault

    Chinese e-commerce giant Alibaba has fired a woman who accused a former co-worker of sexual assault in July this year. A dismissal letter, became effective on Nov. 25, the day it was given to the employee. She is identified in court papers only by her surname, Zhou. After the company failed to take action after she reported the assault, according to her, Zhou went public in August.

    She began passing out fliers to co-workers, unfurling banners in the company cafeteria, and posting messages on Alibaba’s internal website. The subsequent letter claimed she had spread false information “which aroused strong concern from society and damaged the company.”

    The move to fire Zhou is a reversal of Alibaba’s initial support for her. After her allegations surfaced, the company fired the co-worker accused of assault, identified as Zhou’s former supervisor Wang Chengwen. Two senior managers also resigned for failing to act after Zhou made her report. But prosecutors dropped her case in September after investigators found that Wang’s actions constituted “forcible indecency” but did not rise to the level of rape. Police gave him 15 days of administrative detention.

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