Alibaba's Post-Reshuffle Strategy - Emphasizing the Role of Small Businesses Amid Economic Slowdown

A day after its major management overhaul, Alibaba Group Holding Limited  BABA President Chen Long emphasized the growing importance of small businesses and merchants.

He advocated a strategic business pivot formed by its founder Jack Ma.

Long reminded Alibaba's continued focus on small business as the backbone of its platform amid China's consumption slowdown on the sidelines of the Luohan Academy digital economy conference, SCMP reports.

Also Read: Alibaba's AliExpress Prioritizes Spain For Overseas Growth, Also Eyes South Korea

Chen's comments came a day after Alibaba disclosed a management reshuffle under which Daniel Zhang Yong will step down as the group's Chair and CEO in September to focus on the cloud business, with Joe Tsai and Eddie Wu Yongming, involved in the founding of Alibaba, taking over the Chair and CEO positions, respectively.

Chen's comments also mirrored Jack Ma's internal speech in May, where he urged management to refocus on Taobao and consumers to endure the fierce competition and China's economic slowdown.

Chen said China's consumer spending was transitioning, as the pandemic had hurt people's incomes and weakened consumer confidence. On top of the cyclical shocks resulting from the pandemic, China is also facing long-term headwinds as growth engines underpinning the country's prosperity in past years, from real estate investment to exports, are losing steam.

Price Action: BABA shares traded lower by 0.15% at $86.63 premarket on the last check Thursday.