Alibaba Integrates 1688 and Alibaba.com Under Zhang Kuo; Global Wholesale Revenue Up 7%

Alibaba's e-commerce business is undergoing a strategic adjustment, with its B2B units 1688 and Alibaba. com now integrated and operated as a whole under the leadership of Zhang Kuo. Yu Yong, the former head of 1688, will take on a new role within the Alibaba Group. In its latest quarterly earnings report, Alibaba said the new Alibaba E-Commerce Group reflects its strategic focus on realizing significant synergies between domestic and cross-border e-commerce businesses.

The earnings report divides the e-commerce business into four segments: China commerce, instant retail, international commerce, and global wholesale. 1688 and Alibaba. com are now consolidated under the global wholesale segment, whereas previously they were reported under China wholesale commerce and international wholesale commerce, respectively.

The business and personnel changes are intended to integrate domestic supply chain advantages and connect domestic and international markets, driven by AI technology. In the quarter ended June 2026, Alibaba's China commerce revenue fell 8% year on year, customer management revenue declined 7%, and international commerce revenue decreased 1%. Excluding China's instant retail, the global wholesale business, which grew 7% year on year, has become an important growth driver for Alibaba's e-commerce segment.

Amid pressure on domestic e-commerce growth and rising risks in overseas e-commerce, platforms are seeking new growth and synergy efficiencies in supply chains and AI. Pinduoduo previously announced the formation of "New Pinduo" with plans to invest a total of RMB 100 billion over the next three years, integrating the supply chain resources of "Pinduoduo + Temu" and launching brand self-operated businesses. Shein also mentioned in its prospectus plans to strengthen competitiveness by connecting long-tail demand with supply. As overseas tariff policy risks and fulfillment costs rise, platforms need to respond with measures such as price increases, and cross-border e-commerce supply chains must further improve operational and management efficiency.

Alibaba. com has launched Accio Work, an AI agent for cross-border e-commerce merchants, which is already used by more than 50,000 paying merchants. AI is changing user purchasing habits and empowering merchants in product selection. How to further promote innovative AI applications in B2B business and strengthen synergy efficiency between demand and supply chains is one of the challenges Alibaba faces after this adjustment.