Alibaba’s Co-founder Joe Tsai: “We’re Back” and Ready to Dominate the Market
Chinese e-commerce giant Alibaba is poised to reclaim its position as a top player in the market, according to co-founder Joe Tsai. In an exclusive interview with CNBC, Tsai expressed confidence in Alibaba’s future after a period of uncertainty.
A Period of Doubt
Questions about Alibaba’s future have arisen due to internal changes, the cancellation of a cloud computing IPO, and increased competition in its core e-commerce business. The company has faced challenges from cost-conscious consumers opting for lower-priced goods from PDD Holdings and the rise of livestreaming sales on Douyin, China’s version of TikTok.
Back on Track
However, Tsai reassured that Alibaba is back on track. With recent restructuring and new management in place, the company now feels more confident in its position as one of China’s top e-commerce players. Tsai emphasized that Alibaba is ready to face the competition head-on.
Optimistic Outlook
Tsai also expressed optimism about the future of e-commerce in China. He expects the penetration of e-commerce to surpass 40% in the next five years, a significant increase from the current 30% level.
Leadership Reshuffle
Tsai, who has been part of Alibaba since its founding in 1999, assumed the position of chairman in September as part of a leadership reshuffle. Eddie Wu became CEO at the same time, succeeding Daniel Zhang.
Steady Share Performance
Alibaba’s U.S.-traded shares have remained relatively stagnant this year, trading at around $76 compared to its price of about $300 in November 2020. The company’s fintech affiliate Ant Group’s IPO was suspended, and Alibaba faced fines for alleged monopolistic behavior.
Taking on the Competition
Tsai acknowledged the success of China-affiliated e-commerce players like Temu, Shein, and TikTok in the U.S. He noted that Alibaba already sells overseas through AliExpress and Trendyol, which focuses on Turkey. The company is closely observing these players and strategizing its next move.
Navigating U.S.-China Tensions
Tsai recognized the need for cooperation between the U.S. and China despite their competitive relationship. Alibaba intends to strengthen its AI capabilities and capitalize on cloud computing to enhance the e-commerce experience, offering features such as product catalogs and virtual dressing rooms.
As Alibaba rebounds from its challenges, it is clear that the company is prepared to regain its position as a dominant force in the market. With a focus on performance and a solid strategy in place, Alibaba is ready to overcome competition and thrive in the evolving e-commerce landscape.