Jack Ma, one of the most influential people behind e-commerce giant Alibaba, will step down as a chairman on Tuesday, leaving the company and the successor he picked himself with the task of managing the firm at a moment in time in which its core e-commerce business has considerably slowed down.
Ma will be celebrating his 55th birthday, as well as his farewell gathering, in the Hangzhou Olympic Sports Center stadium, which has a capacity of 80,000 people. He will enjoy the company of music bands, celebrity performances, friends, acquaintances, and other close ones. Those present will be wondering how Alibaba will be managed under the upcoming Daniel Zhang’s reign.
For those looking to know how to earn income from home, what Ma made with Alibaba is a good model to follow. After a lot of hard work and a past as an English teacher, he decided to embark on his project and founded the firm in a small shared department in Hangzhou.
Two Very Different Personalities
Zhang, the CEO of Alibaba, is soft-spoken, which is a stark contrast of Ma’s flamboyant personality that led the firm and made it one of the most famous in Asia and the planet as a whole. The new man in charge is an accountant, and his leadership style will be under heavy scrutiny.
For what is worth, Ma appears to have full confidence in Zhang’s abilities to lead the e-commerce enterprise to greener paths. He said, back in 2018 when he appointed Zhang as his successor, that he has the logic and critical thinking abilities of a supercomputer and is committed to his vision. He also praised his courage and dare to try innovative business models.
Zhang will have several challenges in his hands, but one of the most important will be seeking new areas of growth as the e-commerce field in China matures, according to analysts and specialists.
The Company Keeps Investing
Alibaba, although not having the best of years when it comes to its e-commerce business, keeps betting on the future and recently announced a $2.7 billion investment in Kaola, a luxury items retail platform, and also in a music streaming company. The moves show that the enterprise is willing to test new strategies.
Liu Yiming, an analyst at the research division of 36kr, a Chinese tech publishing association, stated that if Alibaba has a desire to find new trends and successfully adopt them, it will be far more difficult than before. The e-commerce field is getting awfully competitive, and more platforms want a share of the market. Every analyst seems to agree that for Zhang, it will be a challenge.
Retail online sales in the country increased only 17.8 percent in the first half of the year, which is significantly down from 32.4 percent it grew in the same period, but in 2018. The data is courtesy of the national statistics office.