Alibaba said yesterday it would restructure its executive team in an effort to combine its business capabilities and expand beyond its core e-commerce activity at a time when online giants are seeking new growth with the age of strong expansion of online spending almost over.
Alibaba has set up a new executive committee to oversee businesses including the new retail, finance, manufacturing, technology and energy, or the so-called "five new economies," according to an email statement.
The new committee comprises core businesses including Taobao and Tmall, as well as other major business affiliates including Cainiao Network, Alibaba Cloud and Ant Financial Services Group.
Alibaba chief executive officer Daniel Zhang will be the president of the new committee.
"We'd like to address the issue of how to leverage the Internet to restructure traditional industries as e-commerce only accounts for 15 percent of the overall retail size," Zhang told the Global Netrepreneur Conference in Hangzhou.
He hopes these new economies would provide fundamental support for not only online vendors but all kinds of merchants and businesses.
Alibaba founder and chairman Jack Ma said the next 3-5 years would be crucial for the promotion of new economies, so the company must combine the forces of business units ranging from financial services to logistic.
"Cloud computing, big data and the Internet of Things would accelerate a new smart world," he said in an open letter to employees.
"We're determined to turn new challenges into new chances."