Core Viewpoint - The article discusses the decline of Kaola Haigou, a once-leading cross-border e-commerce platform, after its acquisition by Alibaba, highlighting its transformation from a market leader to a supporting role within Alibaba's ecosystem [5][19][50]. Group 1: Kaola Haigou's Decline - Kaola Haigou has become inactive, with its app removed from major app stores and its website inaccessible [6][18]. - After being acquired by Alibaba for $2 billion in 2019, Kaola's market share was 27.7%, making it the industry leader at that time [11][20]. - Following the acquisition, Kaola underwent significant restructuring, losing its independent brand identity and becoming an auxiliary to Tmall International [14][16][39]. Group 2: Market Changes and Challenges - The shift in market trends towards fresh e-commerce and live streaming has diminished the appeal of vertical e-commerce platforms like Kaola [26][30]. - By 2021, Kaola's market share had dropped to 22.4%, and it continued to decline in the following years [49]. - The membership-based e-commerce model that Kaola attempted to implement failed to establish itself as a standalone business model, leading to a loss of competitive advantage [29][30]. Group 3: Integration into Alibaba's Ecosystem - Kaola was rapidly integrated into Alibaba's ecosystem, with significant personnel changes and resource allocation to Tmall International [36][44]. - The original logistics and supply chain capabilities of Kaola were absorbed into Alibaba's broader logistics network, diminishing its operational independence [45][67]. - Despite its exit from the market, the resources and user base of Kaola have been effectively utilized to bolster Tmall International's position, which now holds nearly 40% of the market share [68][69].

Core Insights - Kaola Haigou has completely disappeared ahead of the 618 shopping festival, with its app removed from stores and its website inaccessible [1][8] - The platform, once a leader in the cross-border e-commerce sector, has become a "discarded child" of Alibaba after its acquisition [8] Group 1: Company History and Acquisition - Kaola Haigou, originally known as NetEase Kaola, was acquired by Alibaba for $2 billion (approximately 14 billion RMB) in 2019, which significantly increased Alibaba's market share in cross-border e-commerce to over 50% [5][10] - Following the acquisition, Kaola underwent deep restructuring, losing its independent platform status and becoming an auxiliary role within the Tmall International ecosystem [6][7] Group 2: Market Position and Performance - At its peak in 2019, Kaola held a market share of 27.7%, leading the cross-border e-commerce industry [9] - However, by 2021, its market share had declined to 22.4%, and it continued to fall behind Tmall International [27] Group 3: Strategic Integration and Challenges - The integration process involved significant personnel changes, with a drastic reduction in the business team from over 400 to less than 20 by 2022 [21][19] - Kaola's resources, including its supply chain and logistics capabilities, were gradually absorbed into Tmall International, diminishing its independent operational capacity [26][27] Group 4: Broader Implications of Alibaba's Acquisition Strategy - Alibaba's acquisition strategy often leads to the loss of independent growth potential for acquired companies, as seen with other brands like Youku and Xiami Music [28][30] - The shift towards a platform model in Tmall International has made self-operated models like Kaola's less viable, reflecting a broader trend in Alibaba's business strategy [32][33]