The e-commerce industry has always been a hotbed of relentless competition.

This holds true even amidst the dynamic shifts reshaping the internet landscape.

When discussing the competitive dynamics in e-commerce, the enduring rivalry between Alibaba and JD.com stands out prominently.

Last year, the "choose one from two" battle between Alibaba and JD.com concluded with Alibaba being found guilty of abusing its market dominance, causing substantial harm to JD.com, and ordered to pay RMB 1 billion in compensation.

This year, Alibaba and JD.com were once again convened at a "fair competition" conference, reuniting these two companies with a complex history.

According to recent news, on February 25, the State Administration for Market Regulation hosted a symposium on fair competition attended by several enterprises, including representatives from Alibaba Group and JD.com Group, among others. They engaged in in-depth discussions on rectifying "twisted" competition and sought opinions and suggestions.

Connecting this news with past disputes between Alibaba and JD.com reveals that despite appearing calm on the surface, these two giants are actually embroiled in fierce underlying competition.

As competition in the e-commerce industry intensifies and becomes more convoluted, conflicts between Alibaba and JD.com, with their already complex history, are inevitable.

For Alibaba and JD.com, new growth inevitably encroaches on each other's established territories.

While past competitions may seem to have subsided, a new battle between Alibaba and JD.com looms on the horizon.

I

Indeed, competition in the e-commerce industry has long evolved from incremental to existing market competition.

At this stage, players vie for existing users and markets, inevitably leading to their tentacles extending into each other's domains.

Whether it's the price war between JD.com and Pinduoduo or the takeout war between Meituan and JD.com, these are direct manifestations of this phenomenon.

Alibaba and JD.com, with their intricate past, cannot escape this mode of competition. This applies to both the early "choose one from two" disputes and the current competition for existing markets.

For the e-commerce industry, which views traffic as its lifeblood, sustaining traffic growth and fostering new increments amidst existing markets is currently the paramount challenge.

Thus, for Alibaba and JD.com, competition in the existing market is poised to intensify.

However, it's worth noting that past competitions between Alibaba and JD.com may have focused solely on user and merchant-centric traffic battles, with the primary competition model being the traditional "burn money for subsidies" approach.

As the industry enters the era of existing markets, competition between Alibaba and JD.com will shift from a single model to a diverse and multidimensional pattern.

For Alibaba and JD.com, engaging in a profound and comprehensive competition centered on e-commerce-related elements, processes, and links will directly determine their success or failure in the era of existing markets.

Therefore, the battle between Alibaba and JD.com will become increasingly complex and diverse at this stage.

For Alibaba and JD.com, how they ensure they possess novel means and methods, and how they enhance their multidimensional combat capabilities, will directly dictate their success or failure in this new phase.

In this process, we've witnessed Alibaba deploying AI, while JD.com is beginning to fortify its supply chain and industrial chain capabilities.

Regardless of the approach, it's evident that competition between Alibaba and JD.com will become more intricate and multifaceted.

If we were to summarize and define the current state of Alibaba and JD.com, the term "preparing" aptly describes it.

When the time is ripe, a new battle between Alibaba and JD.com will inevitably commence. From this perspective, while Alibaba and JD.com may seem calm on the surface, the underlying competition has already commenced.

II

Whether it's JD.com's recent announcement to enter the takeout and ride-hailing markets or Alibaba's pledge to invest RMB 380 billion in cloud computing and AI infrastructure, it's clear that both Alibaba and JD.com are "preparing" for a new round of competition.

For JD.com, its "preparing" strategy may be more direct, focusing on users and the market.

Conversely, Alibaba's "preparing" strategy is more foundational, focusing on constructing new e-commerce infrastructure.

Regardless of their approach, as titans in the e-commerce industry, Alibaba and JD.com will inevitably clash again on the e-commerce stage.

This is perhaps why Alibaba and JD.com were once again invited to a "fair competition" conference.

Actually, as AI begins to rise, competition in the e-commerce industry seems to be waning.

One significant reason for this is that players like Alibaba and JD.com have yet to find a clear direction.

For Alibaba and JD.com, they are contemplating how to secure their existing market positions and establish a firm foothold to amass energy.

For Alibaba, with the return of Joseph Tsai and Wu Yongming, it has navigated through its darkest phase and ushered in new light.

Whether it's Alibaba's market capitalization returning to USD 300 billion or its consistently rising net profit, these are tangible manifestations of this resurgence.

Next, Alibaba must harness AI to empower e-commerce, unlocking new possibilities.

For JD.com, the situation appears less optimistic.

Although Liu Qiangdong has started to reemerge, and JD.com has reinstated its low-price and quality strategy, in the face of intensified competition in the era of existing markets, signs of JD.com's recovery are not overtly evident.

It can be said that JD.com is still grappling with its darkest moment.

Unlike Alibaba, which can rebound through de-assetization and AI deployment, JD.com still needs to make breakthroughs in market size and user base to extricate itself from its current developmental quandary.

This is why we've seen JD.com venture into the takeout and ride-hailing markets.

If all goes well, in the future, JD.com's reach may extend into more sectors, further augmenting its market size and user base.

When JD.com's tentacles once again encroach upon Alibaba's territory, especially when old grudges and new enmities between the two resurface, a major battle could erupt again.

From this perspective, Alibaba and JD.com are also in a developmental phase marked by underlying competition.

III

We all know that one of the pivotal reasons for JD.com's rise is its unique business model, distinct from Alibaba's. In essence, what JD.com does is what Alibaba does not.

However, it's also crucial to recognize that what Alibaba does not do is often because it lacks the conditions to do so.

For instance, JD.com's prized logistics were complemented by Alibaba's Cainiao Network in the mobile internet era.

Similarly, JD.com's self-operated model was complemented by Alibaba's official self-operated approach.

As Alibaba's shortcomings begin to be addressed, the value and significance of JD.com's existence will no longer rest on differentiation but will start to converge with Alibaba's.

For JD.com at this juncture, finding new points of differentiation from Alibaba to sustain its initial glory may be the key to ensuring it remains a significant player in the e-commerce arena.

It is at this stage that we've witnessed the rise of JD.com's procurement and sales capabilities.

Essentially, one of the pivotal reasons for the rise of JD.com's procurement and sales is that it leverages its supply chain and industrial chain expertise to compensate for the shortcomings of the e-commerce industry, which primarily focuses on matchmaking and docking rather than delving into the upstream of the industry.

For JD.com, this can be deemed a novel differentiation strategy.

However, as Alibaba also starts deploying supply chains and industrial chains, particularly as it embarks on building industrial belts, JD.com's advantages in these areas are beginning to erode.

At this point, competition between Alibaba and JD.com centered on supply chain and industrial chain construction, and the new models derived from them, will recommence.

If we view past battles between Alibaba and JD.com as confined to traditional e-commerce model competition, then when they start complementing each other's shortcomings and compete in each other's originally differentiated areas of strength, a new competition will ensue.

From this perspective, competition between Alibaba and JD.com is inevitable.

Conclusion

The e-commerce battle between Alibaba and JD.com has never ceased, even amidst the current profound reshuffle of the internet industry.

For Alibaba and JD.com, past competitions were more incremental, while current competitions are more centered around existing models.

Whether it's Alibaba heavily investing in building new e-commerce infrastructure or JD.com extending its reach into new markets, both are "preparing" for the impending new competition.

For Alibaba, after the return of Joseph Tsai and Wu Yongming, it has already found new certainties.

For JD.com, despite Liu Qiangdong's reemergence, it seems it has yet to navigate through its darkest phase.

Nevertheless, underlying currents of competition persist between Alibaba and JD.com.

When these underlying currents begin to surge, a new battle between Alibaba and JD.com may reignite.