From CNBC: 2024-03-28 03:55:53

Alibaba’s decision to buy full control of logistics subsidiary Cainiao instead of listing it could indicate a focus on competing with e-commerce rivals Shein and Temu in overseas markets. The move aims to reduce delivery times to three days and strengthen Alibaba’s global network.

With a sputtering domestic economy and booming international e-commerce market, Alibaba seeks to solidify its dominance abroad. Investing in Cainiao’s global infrastructure may help level the playing field against competitors such as Temu and Shein, who lack their own logistics infrastructure.

Alibaba’s decision to make Cainiao private and focus on deep integration with its e-commerce businesses reflects a strategic shift towards regaining market share in the global e-commerce landscape. This move underscores the importance of competitive delivery times, convenient returns processes, and keeping customer data in-house to enhance the shopping experience.

Alibaba’s restructuring includes turning its international e-commerce unit into an independent business, Alibaba International Digital Commerce. With earnings growing 44% and order volume increasing by 60%, the company aims to leverage Cainiao to win in the e-commerce space. By making Cainiao private, Alibaba can concentrate on expanding its global logistics network and building global competitiveness.



Read more at CNBC: ANALYSIS-With Cainiao buyback, Alibaba takes aim at rivals’ overseas advance