Alibaba splits Taobao into 3 divisions
By Ding Yining |
June 17, 2011, Friday
|
Print Edition
Print Edition
ALIBABA Group yesterday split its e-commerce subsidiary Taobao, China's largest online shopping website, into three divisions to better adapt to market conditions.
Taobao was divided into Taobao.com, focusing on customer-to-customer shopping, ETao, a search site that helps users compare prices from various shopping websites, and Taobao Mall, where branded retailers and distributors sell to customers.
The three units will be able to better focus on their own business and adapt faster to changing market conditions, Alibaba Group said in a statement yesterday.
"The restructuring will help the company gain much bigger value and bring more benefits for its shareholders," Jack Ma, chairman and CEO of Alibaba Group, wrote in a letter to employees. "We do not rule out the possibility that the group will go public as a whole in future."
All three units will remain wholly owned subsidiaries of Alibaba Group.
"We have to provide more professional and personalized service for consumers as their demands have changed," Ma said in the letter. "Search, social networking and e-commerce have also gone through reshuffles in the past two years."
Taobao Mall has more than 30 percent of China's business-to -consumer market, hosting about 30,000 branded retailers. Taobao's C2C sector handles an average of 1 billion yuan (US$154.4 million) worth of orders every day. Taobao was established in 2003 and had 370 million registered users by late 2010.
Alibaba Group also owns Hong Kong-listed Alibaba.com, a site where buyers can shop from wholesalers and place their orders online.
Taobao was divided into Taobao.com, focusing on customer-to-customer shopping, ETao, a search site that helps users compare prices from various shopping websites, and Taobao Mall, where branded retailers and distributors sell to customers.
The three units will be able to better focus on their own business and adapt faster to changing market conditions, Alibaba Group said in a statement yesterday.
"The restructuring will help the company gain much bigger value and bring more benefits for its shareholders," Jack Ma, chairman and CEO of Alibaba Group, wrote in a letter to employees. "We do not rule out the possibility that the group will go public as a whole in future."
All three units will remain wholly owned subsidiaries of Alibaba Group.
"We have to provide more professional and personalized service for consumers as their demands have changed," Ma said in the letter. "Search, social networking and e-commerce have also gone through reshuffles in the past two years."
Taobao Mall has more than 30 percent of China's business-to -consumer market, hosting about 30,000 branded retailers. Taobao's C2C sector handles an average of 1 billion yuan (US$154.4 million) worth of orders every day. Taobao was established in 2003 and had 370 million registered users by late 2010.
Alibaba Group also owns Hong Kong-listed Alibaba.com, a site where buyers can shop from wholesalers and place their orders online.
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