When China’s e-commerce leader Alibaba Group (BABA.US; 9988.HK) announced its latest financial results last Thursday, its first dividend payout since its 2014 listing and the halt of a planned spinoff for its cloud division captured most of the headlines.
But behind those attention grabbers, the company’s international e-commerce arm, Alibaba International Digital Commerce Group, or Alibaba International, delivered some of the best results among its businesses since its March announcement of a plan to break itself up to unlock shareholder value. Such a strategy seems to be yielding results for Alibaba International, which, like its siblings, is now operating independently and trying to become nimbler in navigating a fast-moving global e-commerce landscape where it competes with both global conglomerates, as well as regional and local players.
While its positioning puts it in direct competition with international players, Alibaba International is also set apart from its siblings by its purely international focus – an element that could work in its favor as both consumers and businesses in China become more cautious.