After three years of exile, Jiang Fan returns to Alibaba's power center with impressive overseas achievements.

After being sidelined due to a scandal three years ago, Jiang Fan has returned to the center of power at Alibaba, armed with impressive overseas achievements.

On November 21, Wu Yongming, CEO of Alibaba Group, issued a letter to all employees announcing the formation of Alibaba's E-commerce Business Group. This new group will fully integrate e-commerce businesses such as Taobao and Tmall Group, the International Digital Commerce Group, as well as 1688 and Xianyu, forming a business cluster covering the entire industry chain at home and abroad. Jiang Fan has been appointed CEO of this new group, reporting directly to Wu Yongming.

In the letter, Wu Yongming explained the purpose of establishing the new E-commerce Business Group: "By integrating all e-commerce resources within the group, Alibaba's E-commerce Business Group will unleash the capabilities accumulated over the years to serve domestic and global consumers, while helping more small and medium-sized enterprises expand both domestically and internationally."

This news has sparked widespread discussion, as many people still remember the scandal involving this Alibaba executive. Why has he been chosen to return to the center of power? What is Alibaba's intention in establishing this new E-commerce Business Group?

When discussing Jiang Fan, two names cannot be ignored: Wang Xing, the founder of Meituan, and Zhang Dayi, an early internet celebrity.

About four or five years ago, Wang Xing expressed his views on social media, stating that the future of e-commerce would depend on the rivalry between Huang Zheng of Pinduoduo and Jiang Fan of Taobao and Tmall, both of whom he considered exceptionally intelligent. This reflects his high regard for Jiang Fan.

At the time, Jiang Fan certainly deserved such praise. In 2019, at just 33 years old, he was appointed President of Tmall and included in Alibaba's list of partners. Earlier, he had also made significant contributions within Alibaba, such as doubling the Daily Active Users (DAU) of the mobile Taobao app within just one year after taking charge.

However, even heroes have their weaknesses. At the peak of his career, Jiang Fan was exposed for having an extramarital affair with Zhang Dayi, an early internet celebrity. As a result, he was stripped of his status as an Alibaba partner, received a demerit, was demoted, and was transferred overseas to oversee the global AliExpress and international trade business. This move was widely seen as a form of exile.

In retrospect, this could be seen as an opportunity for Jiang Fan to redeem himself. After all, the overseas business was once a strategic focus for Alibaba, and its importance was evident. However, being a newly established segment also represented unknown challenges, testing the leader's abilities in various aspects.

Jiang Fan successfully seized this opportunity. According to Alibaba Group's financial report for the second quarter of fiscal year 2025 (i.e., the third quarter of the 2024 calendar year) released on November 15, the revenue of the International Digital Commerce Group reached 31.672 billion yuan, a year-on-year increase of 29%, making it Alibaba's fastest-growing business segment. This growth was primarily driven by the expansion of cross-border business, with AliExpress Choice orders increasing by 60% year-on-year.

It is worth mentioning that, according to a report by Meiri Renwu, after being transferred from overseas operations, Jiang Fan maintained a low profile, traveling frequently for business, recruiting talent, and conducting research. His initial performance was not particularly impressive, but he achieved strong growth in the first quarter of 2023, with overseas business revenue increasing by 29% year-on-year. As a result, Jiang Fan was re-added to Alibaba's list of partners in July of that year.

The position of CEO of Alibaba's E-commerce Business Group is indeed significant, encompassing not only the Taobao and Tmall Group but also the International Digital Commerce Group, 1688, Xianyu, and other e-commerce businesses. Jiang Fan's return to this position can be seen as a step up in his career.

However, why was Jiang Fan chosen to shoulder this important responsibility? What is Alibaba's intention behind this reorganization?

Industry insiders point out that this is related to Wu Yongming's preference for appointing young, technologically-oriented executives. Additionally, Alibaba currently needs a competent management team to stabilize morale and lead the continued growth of e-commerce businesses such as Taobao and Tmall, 1688, and Xianyu.

Before this adjustment, Alibaba had six major business groups: Taobao and Tmall Group, Cloud Intelligence Group, International Digital Commerce Group, Cainiao Network, Local Life Services Group, and Digital Media and Entertainment Group.

The Taobao and Tmall Group has always been Alibaba's core business, contributing nearly half of the company's total revenue. However, in recent years, it has faced challenges from emerging e-commerce platforms like Pinduoduo. According to Alibaba's latest quarterly financial report, in the third quarter of 2024, the total revenue of the Taobao and Tmall Group was 98.994 billion yuan, a year-on-year increase of 1%. At the same time, adjusted EBITA decreased by 5% year-on-year to 44.59 billion yuan, indicating a decline in profitability.

Signs of trouble had already emerged. As early as November last year, Alibaba's market capitalization was surpassed by Pinduoduo for the first time. Alibaba's founder, Jack Ma, rarely shared a long reflection on Alibaba's changes over the past year on the company's internal network, stating, "We must recognize ourselves and return to the customer value track."

The International Digital Commerce Group, previously overseen by Jiang Fan, has experienced robust growth in recent years. Given these trends, it is not surprising that Alibaba would think of Jiang Fan. After all, he is young and capable, having previously led a business that has transitioned from a peripheral to a critical segment with significant growth potential. If these two businesses are integrated, might they not achieve greater effectiveness?

As Wu Yongming stated in his letter to all employees, "We aim to unleash the capabilities accumulated over the years and help more small and medium-sized enterprises expand both domestically and internationally simultaneously."