Ma backs Taobao amid weak market

Alibaba (9988) founder Jack Ma Yun said the mainland economy will continue to be weak and the group will focus more on the Taobao e-commerce platform rather than Tmall, which is for higher-end products.

Ma's comments came during a communications meeting with business leaders of the Taobao Tmall Group, reports said.

Ma said the group is currently encountering a highly competitive environment, citing examples such as Nokia and Kodak to show how a once-leading company in an industry can deteriorate and potentially cease to exist within six months to a year.

He warned that in the fast-paced internet industry, this process could occur even more rapidly.

Based on his assessment of the ongoing economic downturn in China and the persistent lack of consumer confidence, Ma concluded that the next opportunity lies with Taobao rather than Tmall.