Alibaba is locked in a three-way battle for market share with upstart rival PDD and longtime foe JD.com, but the Chinese e-commerce giant's co-founder Jack Ma thinks heightened competition will be good news over the longer term.
"Many of Alibaba's business face challenges and the possibility of being surpassed, but that's to be expected as no single company can stay at the top forever in any industry," Ma wrote in an internal memo sent to employees late Tuesday to commemorate the company's 25th anniversary, according to The Wall Street Journal.
"Only with competition can we become stronger and allow the industry to remain healthy," he added.
Alibaba's earnings have disappointed this year as it struggles to win a price war against JD.com and PDD, which owns Pinduoduo in China and Temu in the U.S. In June, the three companies locked horns for China's annual 618 shopping festival, slashing prices and rolling out promotions in a battle investors fear could weigh on margins.
China's faltering economy has also weighed on demand for Alibaba's products, with Beijing struggling to revive stagnant growth ever since it called time on its harsh zero-Covid lockdowns in late 2022. Policymakers have also struggled to stave off deflation, which makes it harder for retailers to raise their prices.
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