Alibaba’s innovative business group responded to the “contracting strategy of content internationalization”.
On June 2, it was reported that Alibaba (NYSE:BABA, 09988.HK) cut off overseas businesses such as UC News, and the content internationalization strategy has shrunk. Among them, UC News announced internally last week that it would cease operations, the original team was fully integrated into Ali Health, and Ali’s overseas short video product VMate will also reduce staff and tighten capital investment. In addition, Zhu Shunyan left UC on March 16 to become the CEO and chairman of Alibaba Health, which is considered to be “the greatest support”.
In response to this, on the evening of June 2, Ali Innovation Business Group responded to the surging news reporter (www.thepaper.cn): “We are firmly Explore and develop overseas business, and continue to work hard to create user value.”
The person said that Zhu Shunyan did not leave UC, and on June 2 he used Ali to innovate business The identity of the group president and the chairman and CEO of Ali Health participated in the first anniversary of the reorganization of the Ali business group.
For UC News has ceased operations, will the short video product VMate reduce staff? As of press time, Ali’s innovative business group did not respond positively.
An insider of the Ali innovation business group, who did not want to be named, told Peng Mei News reporter: “Including business such as VMate, we must be exploring a better development path , Whether it is the rumors of adjustments in personnel or capital, must also be the strategic goal of service.”
It is understood that in June 2019, Alibaba Group announced the organization upgrade , Reorganizing the innovative business group, Zhu Shunyan became the president. At present, the business group includes UC business department, book banner business department, intelligent marketing business department, X-LAB business department, VMate business department, artificial intelligence laboratory, financial media development business department and other business sectors, as well as serving internal innovation projects Innovation promotion office for incubation, evaluation and planning. Among them, the UC business unit focuses onMobile Internet business innovation, related business lines in the ecosystem include Shenma search, Ali application distribution, etc. In overseas business, in addition to UC browser, there are information flow products UC News, third-party Android application store 9Apps, short video platform VMate and other products.
It’s worth noting that when Zhu Shunyan talked about innovation organizations, project cycles and other topics on June 2, the innovation business group is not just pursuing a single new product Success, but hope to create a set of capabilities, mechanisms and systems that continue to incubate innovative products within Alibaba, and train a group of young innovation leaders.
Zhu Shunyan said that closing the project is actually very simple. The quality of the Internet project is good or bad. You can make professional judgments based on data and other dimensions. The failure rate of an innovation project may be more than 90%, and the small probability of success will have a huge impact on the future. What we are doing is continuous innovation. People who have experienced many failures, we have to give him extra points.
Judging from the data disclosed by Ali’s innovation business group on the same day, currently, Ali’s innovation business group has incubated more than 10 million users such as quark, singing duck, VMate A large number of new products are distributed in smart search, music communities, short video communities and other racetracks, of which the overall increase of users after 95 is more than 370%.
On May 22, Ali released its fourth quarter and full year financial report for the fiscal year 2020 ending March 31, 2020. In the 12 months ended March 31, 2020, the consumer digital business GMV of Alibaba’s digital economy exceeded US$1 trillion. In terms of innovative business, the financial report shows that for the quarter ended March 31, 2020, innovative business and other revenues were RMB 2.288 billion, an increase of 90% over the same period in 2019. The main reason for the growth is the increase in revenue from online games and other businesses.