The e-commerce division of Alibaba Group Holding Ltd. intends to direct huge investments to the development of its Taobao trading application.
After the restructuring process of the Chinese commerce giant’s business, six new divisions have appeared that have the ability to independently raise funds.
Trudy Dai, chief executive officer of the newly dedicated Taobao Tmall trading group, said that this subsidiary will focus on creating content as a channel to attract users to the platform. The firm will also provide sellers with tools based on artificial intelligence.
Trudy Dye said that the company will send record investments in order to expand the customer base, which corresponds to the interests of sellers. Special attention will be paid to stimulating content creation in all areas. The company intends to increase funding for this aspect of its activities.
Experts suggest that special attention to content with a high degree of probability may be a response to Douyin from ByteDance Ltd. and similar platforms on which it is possible to post videos of minimal duration and conduct live broadcasts. E-commerce tools are increasingly being used on these platforms.
The young audience tends to make a choice in favor of products that were somehow mentioned or were involved in the videos they viewed on virtual platforms. In these conditions, new rules for effective e-commerce are being formed, which Alibaba cannot ignore. Industry leaders, in order to maintain their positions and maintain their dominant position in the market, should implement the practice of integration with virtual social interaction platforms.
Trudy Dai says that Taobao will change tariffs and commission rates in accordance with modern requirements. According to her, the implementation of this solution will be useful and profitable for sellers. Merchants will also have access to free tools for intelligent management.
Alibaba will report financial results for the first quarter of this year this week. Analysts predict that the company’s sales will grow by less than 3%, justifying their forecast by the fact that the industry is currently in a state being under the influence of disproportionate recovery of the Chinese economy after the coronavirus pandemic and is experiencing the consequences of a policy of strict regulation regarding large technologies.
Alibaba, being the leader of Chinese commerce, carried out a historical reconstruction in March. The result of this large-scale process is that departments from logistics, cloud technologies, and e-commerce can now enter public markets
Alibaba CEO Daniel Zhang announced the possibility of phasing out the practice of controlling several divisions and preparing for an initial public offering in Hong Kong for the logistics division of Cainiao Network Technology Co. and its Freshippo grocery chain. The group’s international online shopping division is also exploring the possibility of a public offering in the United States.
Alibaba is currently focused on the development of artificial intelligence. After the launch of ChatGPT, investors’ interest in this industry increased. There are also many promising talents working in this field. Alibaba plans to include its large language Tongyi Qianwen model in all products and services in the near future.
As we have reported earlier, Alibaba to Roll Out Its Own AI Bot.