Alibaba Group's business structure has undergone another change, officially shifting from the "1+6+N" model to four major business categories, with a full focus on "e-commerce and cloud+AI."

Recently, reporters discovered on Alibaba's official website that the company's businesses have been reorganized from the original six major business groups into four categories: Alibaba China E-Commerce Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group, and All Other Businesses.

Integrating Group Business Structure

Specifically, the e-commerce segment of Alibaba China E-Commerce Group includes Taobao, Tmall, Xianyu, and Fliggy Travel. The instant retail segment includes Taobao Flash Sales and Ele.me, while the wholesale segment comprises the 1688 business.

Alibaba China E-Commerce Group was officially established in November 2024. On November 21, 2024, Alibaba formed a new e-commerce business unit, which directly reintegrated previously separated entities such as the Taobao Tmall Group, International Digital Commerce Group, and e-commerce resources like 1688 and Xianyu, creating a super e-commerce business unit that covers the entire industrial chain both domestically and internationally.

In June of this year, Alibaba formally merged Ele.me and Fliggy into its e-commerce business unit. In early August, Taobao launched a new membership system that integrates resources from Alibaba's ecosystem, including Ele.me and Fliggy, covering life scenarios such as dining, entertainment, clothing, housing, and transportation.

Businesses categorized under "All Other Businesses" include DingTalk, Quark, Amap, Cainiao, Youku, Damai Entertainment, Freshippo, Alibaba Health, and Lion Sports.

Frequent Adjustments

From the changes, it is evident that the original local life group's businesses have been split. Ele.me has been incorporated into Alibaba China E-Commerce Group, while Amap has been categorized under "All Other Businesses." Cainiao Group has also been placed under "All Other Businesses," and Youku and Damai Entertainment from the Orca Entertainment Group have been similarly categorized.

This business restructuring officially marks Alibaba's transition from the "1+6+N" model to four major business categories. Previously, on March 28, 2023, Alibaba Group announced a "split," initiating a "1+6+N" organizational transformation. This involved establishing six major business groups—Alibaba Cloud Intelligence, Taobao Tmall, Local Services, Cainiao, International Digital Commerce, and Digital Media and Entertainment—along with several business companies. At the time, Daniel Zhang, then Chairman and CEO of Alibaba Group, served as Chairman and CEO of the Cloud Intelligence Group.

Over the past two years, Alibaba has made frequent adjustments to its business structure, from scaling back its investment portfolio to reorganizing business segments, all reflecting its strategic intent to focus on core areas.

For example, since 2024, Alibaba has exited assets such as Sun Art Retail and Intime Department Store, shedding non-core businesses to devote more resources and strategic focus to its core areas with the highest growth potential: e-commerce and cloud intelligence.

Concentrating Resources on Core Businesses

Zhang Yi, CEO and Chief Analyst of iiMedia Research, believes that Alibaba's latest adjustment is a move to streamline its operations and concentrate resources on its strengths. "Over the past decade, Alibaba's businesses have continuously expanded outward, with the hope of becoming a leader in every field. However, the results have been limited. While some businesses are in leading positions, the second and third players are equally competitive, such as in cloud services and e-commerce. This adjustment is Alibaba's way of streamlining its operations, concentrating its forces, and focusing on its core," Zhang Yi analyzed.

In May of this year, Joseph Tsai, Chairman of Alibaba Group, delivered an important speech at the "5·10 Aliday"亲友见面会 (Friends and Family Meeting), clearly outlining Alibaba's core strategic direction for the next three to five years: "e-commerce" and "cloud+AI." He emphasized that AI technology will become the core driver of all businesses.

Tsai stated that Alibaba will fully promote the deep integration of AI technology with various business segments, using technological innovation to break through industry boundaries, explore new user entry points, and enhance market competitiveness. He specifically mentioned several of Alibaba's innovative businesses, including Xianyu, Quark, Amap, DingTalk, and 1688, emphasizing that these businesses will achieve new growth through AI technology.

Tsai noted that Alibaba is in a critical phase of transitioning from an "internet company" to an "AI-driven technology company." Over the next three to five years, AI will become the core competitiveness of all businesses.