Alibaba's businesses abroad have become a lifeline for the company amidst stagnation in its home market in China. Several of Alibaba's business units operating overseas have reported quite encouraging revenues.
One of these 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 stands out when compared to the local e-commerce platforms Taobao and Tmall Group, which operate in China. Their revenue stood at $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 supported by an increase in losses, which have also risen. This is due to increased investments in businesses, including AliExpress Choice and Trendyol.
Recently, companies under AIDC have also undergone leadership reshuffles and layoffs conducted by their overseas business units. Daraz, a Pakistani e-commerce platform, replaced its CEO from Bjarke Mikkelsen to James Dong, who previously served as the CEO of Lazada Group.
"Dong will strive for deeper integration between Daraz and similar companies," the company said.
Meanwhile, Lazada reportedly conducted mass layoffs in early January. This policy affected the company across Southeast Asia and all levels up to senior management.
The layoffs at Lazada occurred in all departments. CNBC International reported its impact from commercial, retail, to marketing divisions.
Regarding these massive layoffs, Alibaba International stated that their aim was to simplify decision-making processes. Additionally, it was to enhance organizational efficiency and the company's business.
It is known that Alibaba began to falter when its founder, Jack Ma, left amid issues with the Xi Jinping government. One of Alibaba's business units even failed to IPO at that time. Subsequently, Alibaba also faced fierce competition from several new players, with Pinduoduo (PDD) being one of the most prominent.