From Market Giant to Market Rebrand: Alibaba’s Evolution After Government Crackdown and Competition from New Tech Giants

Alibaba, which was once a symbol of Chinese e-commerce success, has faced a series of challenges that have tarnished its reputation. In 2021, the company was targeted in a government crackdown on China’s largest technology firms, resulting in a record $2.8bn fine for monopolistic practices. Co-founder Jack Ma took a step back from the spotlight, causing further concern.

Despite this setback, competitors like PDD and ByteDance have excelled in meeting the needs of budget-conscious consumers and adapting to new trends like “social commerce.” As a result, Alibaba’s market value significantly declined, dropping below $170bn in late 2022.

In an effort to combat this downward trend, Alibaba made the strategic decision to split into six separate entities in March of the following year. These included a logistics business (Cainiao), a cloud computing division (Aliyun), an international e-commerce arm (featuring platforms like AliExpress), a digital services company (including food delivery app Ele.me), and a small media group. Alibaba proper retained its domestic retail operations, focused on Taobao and Tmall, which generate the majority of the company’s revenue.