Top tech companies in APAC reported Q1

Is Alibaba’s new strategy a 𝗹𝗮𝘀𝘁-𝗱𝗶𝘁𝗰𝗵 𝗲𝗳𝗳𝗼𝗿𝘁 to stay relevant? (has it lost its crown to Pinduoduo?) 👉 Alibaba split into six business units in 2023, in the biggest revamp of its 24-year history. 👉 Alibaba’s revenue grew far below expectations, just 4% in Q2 2024. 👉 Underdog competitor Pinduoduo now holds a market cap that rivals Alibaba’s. Just a few years ago, Alibaba was the undisputed king of global e-commerce. But being the market leader is no longer a guarantee of dominance. The “Price War” strategy during the June 18 shopping festival, cutting merchant fees, and taking a hit on profitability to defend market share have left Alibaba vulnerable. Pinduoduo’s more cost-effective strategy, coupled with a better user experience, is starting to pull consumers away from the platform. Alibaba’s push into AI and cloud computing may be its secret weapon. But so far? It’s not enough to hold off challengers like Pinduoduo and https://lnkd.in/gNJb_gc6. The big question now for Alibaba? —Keep fighting a multi-front war with aggressive pricing and a slow-moving AI narrative, or… —Focus on reinvention through its individual units, leveraging cloud, AI, and international expansion for sustainable growth. The clock is ticking. What’s your take? 💬 #Ecommerce #AI #TechStrategy #Alibaba #Pinduoduo Stay connected for the latest on eCommerce logistics, pricing, and market trends.

The future of #Alibaba Group Holding Ltd. seems to be taking a positive turn after a challenging period. Here are some key points: * **Jack Ma**, the founder of Alibaba, has endorsed the company's significant organizational changes, signaling a positive shift in Alibaba’s trajectory¹. * Alibaba underwent a historic reorganization and sweeping management changes in a bid to return the Chinese technology giant to growth². * The company announced plans to split up its massive business empire, reshuffled its management team, and brought in a new CEO, **Eddie Wu**, to lead the company⁴. * Alibaba's e-commerce segment led by #Taobao and Tmall, has faced enormous challenges lately. The rise of PDD Holdings and Douying have made for an increasingly competitive business environment⁴. * One central area of change is Wu's commitment to putting users first to build a thriving e-commerce ecosystem⁴. * Alibaba Cloud has become the leading cloud infrastructure player in China with a 34% market share⁴. * Alibaba has brought in a separate management team and board of directors for the cloud business, giving the unit more independence to chart its own path⁴. * Co-founder Joe Tsai expects the penetration of e-commerce in China will exceed 40% in the next five years, up significantly from the current 30% level⁶. These developments suggest that Alibaba is making strategic changes to adapt to the evolving market and regulatory environment. However, the success of these changes will depend on their execution and how the market responds. Please note that this information is current as of April 2024 and may change over time. Source: (1) Jack Ma Endorses Alibaba's Revamp, Signaling Confidence in the Tech Giant's Future. https://lnkd.in/gnJqAwXv. (2) Alibaba shares jump after founder Jack Ma reemerges with praise of Chinese giant's 'transformations'. https://lnkd.in/gxsrEVVC. (3) What Can Investors Expect From Alibaba in 2024? - Yahoo Finance. https://lnkd.in/g5qJn9f2. (4) After doubts about Alibaba's future, co-founder Joe Tsai says ... - CNBC. https://lnkd.in/gYJhNRgy. (5) Jack Ma steps into ‘mistakes’ brouhaha to boost Alibaba’s morale in staff memo, eliciting support from Chinese Embassy in US. https://lnkd.in/gHdSRHZ8. (6) Alibaba's Future Looks Even More Uncertain After It Scraps Cainiao IPO .... https://lnkd.in/gAWi4hkA.

Here is a letter Jack Ma recently posted to the Alibaba employees sharing his views on the past and what he sees as the opportunities ahead. It has not been an easy ride for the company over the last few years. But under the company's new leadership of Joe Tsai and Eddie Wu the necessary transformation is taking place. As the founder of the company, Jack highlights the importance of embracing the future of ecommerce in the AI era. Constant change and transformation are the hallmark of the "Tao of Alibaba". In Jack's own words: "Throughout our journey, from B2B to Taobao, to Alipay, and now Alibaba Cloud, our innovations have never been about pursuing higher profits but rather about ensuring our survival in a rapidly changing era. Our innovations are not meant to change others but to change ourselves. Our innovations have never aimed to surpass our competitors but rather to catch up with the future. Innovation is not about following trends; it tests your true ability to survive. It demands that you question your beliefs from within, constantly challenge yourself, and do what others dare not do, do not want to do, or have never done." English translation provided for reading convenience. For original Chinese text visit this Weibo account: https://lnkd.in/gQe5R7nD #jackma #alibabagroup #AI #TaoofAlibaba

In my opinion, our biggest mistake in recent years was misunderstanding who our customers are, given that we have both sellers and buyers on our platform. This is crucial as it forms the foundation of our strategy. Although it is the sellers who make payments, it is the buyers who are the primary reason for the sellers to remain on our platform. The most significant change in the past year has been our decision to prioritize a "buyer/user first" strategy, with all technology, including AI, aimed at solving the problems faced by buyers first. It is common sense that buyers should come first, but it can be difficult to practice as the seller determines your next quarter revenue, particularly when you are facing financial strain.

Alibaba's values and principles: 1. Customers first, employees second, shareholders third. 2. Trust makes everything simple. 3. Change is the only constant. 4. Today's best performacne is tomorrow's baseline. 5. If not now, when? If not me, who? 6. Live seriously, work happily.

Here are some of last week's trending tech and business news from China and around the world: ✅ New data from Meituan, China’s largest on-demand service provider, shows that food delivery workers in major cities such as Beijing, Shanghai, and Shenzhen earned more than the local population in June. Delivery workers meeting minimum work requirements took home an average of 11,000 yuan ($1,550) monthly, surpassing Beijing’s average monthly disposable income of 7,180 yuan. The gig workers now make up 23% of China's workforce, highlighting the rise of flexible employment. ✅ At its Apsara Conference, Alibaba Cloud announced the open-source release of 100+ Qwen 2.5 large language models (LLMs), signaling its commitment to advancing AI technologies. These models, part of the Tongyi Qianwen family, support 29 languages and applications ranging from gaming to scientific research. Alibaba also introduced a text-to-video model capable of generating high-quality, 20-second videos in multiple styles. Additionally, Alibaba Cloud announced significant price cuts, reducing LLM costs by up to 85%, further supporting global AI development. ✅OpenAI is facing backlash for threatening to ban users attempting to reveal its AI model’s reasoning process. The company, is now warning users that trying to uncover its model’s thought process could result in account suspension. This comes after the release of "Strawberry," a new AI model praised for its step-by-step "chain-of-thought" reasoning. However, OpenAI claims hiding the model's raw reasoning ensures safety and competitiveness, sparking criticism and raising concerns about increasing opacity. ✅ BlackRock is set to launch a $30 billion AI investment fund with Microsoft to develop data centers and energy projects to meet the rising demands of AI technology. Partnering with Global Infrastructure Partners and Abu Dhabi-backed MGX, the fund aims to tackle the significant energy requirements for AI, which are straining current infrastructure. BlackRock, the world's largest asset manager, sees energy infrastructure as a key growth area. As global electricity consumption from data centers is projected to surge, this fund represents a critical investment in the future of AI and cloud computing. Follow us for more weekly tech and business related news wrap-ups!⭐ #business #china #globaltech #chinabusiness #chinatech #newsletter

📰 News: 📰 --- AI: The Bright Spot in Alibaba’s Mixed Financial Bag 📈🚀 In a world where e-commerce is slowing, Alibaba is finding its new superstar in artificial intelligence. Imagine driving a car through a foggy road, then suddenly, clouds break, and you see the path ahead lit clearly by advances in AI technology. Yep, that's Alibaba right now. In their latest quarterly earnings, Alibaba’s cloud computing business emerged as the shining beacon while e-commerce hit a few bumps. Let’s dig into some numbers: - Alibaba's cloud computing, powered by AI, recorded its fastest growth since late 2022, growing 6% year-on-year to 26.5 billion yuan. - The overall company revenue grew 4% to reach 243.2 billion yuan -US$33.5 billion-, though it missed analysts' expectations. - Triple-digit year-on-year growth in AI-related product revenue was a testament to their strategic investment. But hey, it's not all sunshine and rainbows. E-commerce giants like PDD Holdings and ByteDance are snapping at Alibaba’s heels, so the competition is fierce. What do you think about AI’s role in driving future growth at Alibaba? Drop your thoughts in the comments below and don’t forget to hit that follow button for more updates from the Bernier Group! 🚀✨ #AIDriven #Digital #AI #Data #SMB #SME #Strategy #Innovation #Business #ArtificialIntelligence #AnniQ https://lnkd.in/evXY2pTV

In a remarkable announcement that sets the stage for the future, Alibaba Group's CEO Eddie Wu has unveiled an ambitious strategy emphasizing globalization and the groundbreaking GenAI platform. This move marks a significant milestone not only for Alibaba but for the entire e-commerce industry, heralding a new era of innovation and international cooperation. Key Highlights: - Globalization as a Core Strategy: Alibaba is poised to break new ground, extending its reach and influence across borders. This strategic pivot underscores the company's commitment to creating a truly global e-commerce ecosystem. - Introducing GenAI Platform: At the heart of this strategy lies the GenAI platform, a testament to Alibaba's forward-thinking approach to leveraging cutting-edge artificial intelligence. GenAI promises to revolutionize the e-commerce landscape by enhancing operational efficiency, personalizing customer experiences, and driving growth through innovation. Why This Matters: -For businesses, this expansion and technological advancement open up new avenues for growth and collaboration on a global scale. - For consumers, the integration of AI technologies like GenAI translates into more personalized and seamless shopping experiences. - For the industry, Alibaba's move signals a significant shift towards more integrated, AI-driven global marketplaces. Read more here https://lnkd.in/eH7--AN6 #Alibaba #GlobalEcommerce #GenAI #Innovation #FutureOfCommerce

5 Things You Need To Know Today: 💡 1. Meta Platforms unveiled major updates to its Ray-Ban Meta smart glasses, introducing AI-powered video capabilities and real-time language translation rolling out through its v11 software update. 2. Nissan Motor Co. and Honda Motor are in merger discussions under a new holding company, potentially including Mitsubishi Motors to create the world’s third-largest auto group by revenue, trailing only Volkswagen and Toyota. 3. Beijing is planning a record budget deficit of 4% of GDP for 2025, up from the 3% target set for 2024, as it braces for a potential US tariff in line with a “proactive” fiscal policy outlined at recent Politburo and Central Economic Work Conference meetings. 4. Walmart expanded in China's retail market by partnering with delivery giant Meituan to offer 30-minute grocery deliveries nationwide by integrating all Walmart stores into Meituan’s “Shangou” platform. 5. Hong Kong Exchanges and Clearing (HKEX) announced plans to cut minimum price changes for certain securities by up to 60% to enhance market liquidity and efficiency by targeting tighter bid-ask spreads. ✅ Key Takeaways: Investor sentiment soured as no new measures were announced from China’s annual Central Economic Work Conference amid less-than-expected consumption data demonstrating no improvement despite a slew of supporting measures.

The degenerative economy has less and less work for actual people to do, we can produce more pollution and landfill now (and ever increasingly) with fewer and fewer people but, the goods are more and more expensive and the purchasing power and wages of the majority lower and lower. I wonder how this trend ends.