Market Overview

What Are Alibaba's Plans For Expansion? Incoming CEO Daniel Zhang Reveals


Alibaba Group Holding Ltd (NYSE: BABA) posted solid quarterly earnings earlier Thursday, causing its stock to open strong and trade up more than 7 percent.

Daniel Zhang, incoming chief executive officer at Alibaba, was on Bloomberg TV following the result declaration to discuss the company’s growth plans and changes in leadership.

Young Generation Needed

On the major changes in Alibaba and its subsidiaries’ top leadership Zhang said, “We change a couple of leadership in our BUs, and we believe that today is the right time for us to bring young generation to the leadership.”

“And, as you know, Alibaba wish to live for 102 years. This is a long journey. So we need young generation to participate in the leadership and lead the company to the next path of journey.”

International Business Will Grow

Zhang was asked how much of Alibaba’s revenue this year is he expecting to come outside of China. He replied, “Well, globalization is one of our cost strategies in the future. And we start with our cross-border strategies and we help the overseas supplies to sell through our platform to Chinese consumers. On the other hand, through our Alibaba - Ali Express retail platform, we help Chinese suppliers to sell through to the overseas customers all over the world.”

“We are confident that business from international, from our globalization will continue to grow. And now is just a starting point.”

Focus Countries

Chang highlighted that through the company’s retail platform Ali Express “we sell a lot of products to the developing countries like Brazil, like Russia. And in those countries, the consumer product is very expensive, so we help Chinese suppliers to sell through our platform to those countries.”

“But we will cover a lot more countries in the future.  And on the other hand, we will participate in the growth of certain countries, large investments and M&A. We will try to help the young generations and the young entrepreneurs in the local countries to do their own business,” Zhang concluded.

Posted-In: CNBC Daniel ZhangMedia


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