In China Yahoo is operated by Alibaba Group, which has recently been accused of shifting resources out of Yahoo and into its own Taobao platform.
Speaking to Media at the Online Marketing Summit in Korea, Tsou insisted that “Alibaba is our China strategy” and that Yahoo is looking to continue its long-term brand strategy in the market through the partnership.
Speaking to Media at the Online Marketing Summit in Korea, Tsou insisted that “Alibaba is our China strategy” and that Yahoo is looking to continue its long-term brand strategy in the market through the partnership.
“Yahoo used to operate in China for a number of years before we entered this partnership with Alibaba... so we also understand that’s a pretty challenging market to compete in,” she says, noting cultural and governmental hurdles that make operations a challenge. “I think over the years Yahoo learned that our best way to win in that market is to operate through local people. You have to have the local talents that know how to operate China and really know how to make an investment into China really work."
Tsou’s statement comes during a seemingly difficult period for the brand in China. Just this week, local reports surfaced that China Yahoo will end operation of its Yahoo Guanxi social networking site at the end of October, approximately one year after it launched.
In August, Alibaba Group decided to shift classified listings site Koubei.com from Yahoo China to auction site Tabobao.com in what analysts said was a reflection of Yahoo’s weak positioning in the market. In the aftermath of that announcement, nearly 100 Beijing-based employees of China Yahoo reportedly resigned after facing the decision to relocate to Hangzhou or accept redundancy.
And earlier this month, Yahoo sold its 1.9 per cent stake in Alibaba.com, a move that drew more comment on the nature of the relationship between the two companies. According to Tsou and other sources close to Yahoo, the sale was a strictly financial decision, and Yahoo continues to hold 40 per cent in Alibaba Group, Alibaba.com’s parent company.
Tsou said Alibaba has been operationally savvy with its own assets and Yahoo will continue its relationship in the hope that Alibaba’s technique will benefit the China Yahoo franchaise.
However, Tsou noted that Yahoo must take an outsider’s view of its brand operations in the market while Alibaba implements China Yahoo strategies.
