On February 26th, according to media reports, Joe Tsai, Chairman of Alibaba Group, stated that Alibaba will focus on e-commerce and cloud. E-commerce represents the most rich AI application scene, and Alibaba is increasing its investment in related technologies, such as striving for more precise supply-demand matching to enhance user purchase frequency and order volume.
Joe Tsai reiterated Alibaba's focus on e-commerce and cloud. He mentioned that e-commerce in China accounts for approximately 30% of total retail sales, but within the next five years, this penetration rate is expected to rise to 40% or even higher, serving as a long-term driver for Alibaba's e-commerce business. "This is an industry of long-term growth, and we are very excited about it."
Regarding cloud computing, Joe Tsai believes that the Chinese economy is in the midst of digitalization, creating significant demand for cloud computing. "China's GDP accounts for about 17% of the global total, while its digital scale is equivalent to about 30% of the world's, making it a very, very good market for developing cloud computing business."
Joe Tsai also revealed that e-commerce represents the most rich AI application scene, and Alibaba is increasing its investment in related technologies, such as striving for more precise supply-demand matching to enhance user purchase frequency and order volume. In the December quarter, orders on the Taobao and Tmall platforms achieved double-digit growth successfully.
Joe Tsai stated that Chinese manufacturing offers superior quality and reasonable prices, embodying great consumer value, and Alibaba will observe and consider its next steps. He also emphasized, "The United States is just part of the world; there are other markets in the world to participate in. Our platforms such as AliExpress and Trendyol have achieved great success in other parts of the world, and we will continue to execute our strategies in these regions."
Regarding Jack Ma and Joe Tsai becoming Alibaba's largest individual shareholders, Joe Tsai said that founders becoming important shareholders demonstrates confidence in the company, which is a very important signal.
As Chairman, Joe Tsai believes that the most important thing is to have a strong management team in place, injecting new vitality into management and instilling new confidence in employees.
