Alibaba, JD.Com Overhaul E-Commerce Operations To Drive Growth

Alibaba Group Holding Limited BABA and JD.Com, Inc JD are adjusting their retail business operations after major restructuring moves to boost sales amid China's dismal economic recovery.
Alibaba confirmed reorganizing its Taobao and Tmall businesses by establishing three central industry development departments based on consumption trends and user demand scenarios, SCMP reports.
The head of three new departments will report to Trudy Dai, president of Alibaba's Core Domestic E-commerce unit, which currently comprises Greater Taobao (Taobao, Tmall, Alimama), B2C Retail (Tmall Global, Tmall Supermarket, Tmall Luxury), Taocaicai, Taobao Deals, and 1688.com.
JD.com is conducting a new restructuring round, flattening its retail business's management structure. It no longer proposes to retain different teams for its stores and third-party stores operated by outside merchants.
In March, Alibaba shared plans to reorganize its business into six independently-run entities, free to seek funding avenues through initial public offerings. JD.com announced it would spin off its property and industrial units and list them on the Hong Kong stock exchange.
Hong Kong, an associate researcher at the Ministry of Commerce's research unit, said e-commerce giants have recently made intensive management changes to "improve their competitiveness and market position."
"Traffic is running to platforms like Douyin [so] traditional e-commerce platforms are facing bigger pressure," Li from the Dolphin said. Still, he is cautiously optimistic that the restructuring moves will benefit the two most prominent e-commerce leaders over time.
Price Action: BABA shares traded higher by 2.70% at $95.10 premarket on the last check Monday.

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