Sometimes, it still amazes just
how quickly China was able not just to keep up but become a pioneering figure
in electronic commerce. It is not for nothing that Chinese companies rank
pretty high in online business especially now. One particular big name in that
regard is the Alibaba Group, founded in 1999 by a group led by Jack Ma, now one
of the most recognizable business magnates in China thanks to this company
which had the 9th highest global brand value as of 2018. It has been
over two decades since Ma co-founded Alibaba, but now he has decided to walk
away from it.
Inquirer.net reports that Jack Ma has stepped down as executive
chairman of the Alibaba Group, confirming the initial announcement he gave in
September of last year to that effect. His departure took effect on Tuesday,
September 10, on the occasion of his 55th birthday. The timing of
the founder leaving what is arguably the world’s largest e-commerce company
could not seem to come any worse to observers, especially as China continues to
lock horns with the US in a trade war that has already begun hobbling other
major Chinese businesses such as smartphone maker Huawei.
Not even Alibaba was spared the
growing uncertainty due to the tariff conflict between the two economic
superpowers. Their online sales during the first half of 2019 was only 17.8%
whereas last 2018 the whole-year growth rate had been 23.9%, due to the slowing
economic growth. Joe Tsai, Alibaba deputy chairman, assures the media however
that their company makes a point to always be properly on-side during the tense
US-China trade discussions being held to prevent further conflict on tariffs.
The Communist government in Beijing has also promised to increase imports for
the sake of their ever-expanding consumer base, something Alibaba can take
advantage in.
It is no exaggeration to claim that
the Alibaba Group’s e-commerce platform, created by Jack Ma as a bridge between
Chinese product exporters and American retailers at a time when the internet
was still a curiosity in China, had a major impact in the rise of online
businesses in the country, with its capitalist market under Communist oversight.
Today they stand with the likes of JD.com, Baidu and Tencent Holding as major
pillars in the Chinese online marketplace and entertainment sectors, while
connecting them to the rest of the world.
As for Jack Ma, upon stepping
down as executive chairman he will take his place in the Alibaba Partnership, a
group that has power to nominate most of the company’s board of directors. His successor
as chairman is Daniel Zhang, who will move up from his current position as CEO.
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