Alibaba sees challenges ahead

Says pure e-commerce players face daunting obstacles, moving to help them transform.

Internet giant Alibaba Group Holding Ltd said in a letter to shareholders on Thursday that it saw pure e-commerce players to face "tremendous challenges," and in the face of that it was moving to tap more growth by helping transform the businesses in China and abroad.

Alibaba indicated that its new group would carve out more growth by helping transform the traditional retail industry, which in the mainland is valued over $4.5 trillion.