Taobao and Tmall adjust strategies, following Jack Ma's advice, to prioritize user experience.
In the bustling world of e-commerce, Taobao and Tmall, two major platforms under the Taotian Group, have been making waves this year. With a clear focus on providing good products, competitive prices, and exceptional services, the platforms have been catering to the diverse needs of domestic consumers.
Prior to this year's 618 shopping festival, a survey by the "Youlishu" channel of The Beijing News revealed some intriguing insights. Over 3,000 consumers were asked about their preferences, and 44% valued genuine products, while 34% cared about the comprehensive shopping experience that encompasses product, price, and service.
The 618 shopping event, a significant date in the Chinese retail calendar, saw Taobao's daily active users (DAU) increase by 22.9% year-on-year during the first phase. The festival was marked by a surge in sales, with home appliance sales growing by 74.2% and 3C digital sales increasing by 90.1%.
Taobao took a strategic approach during this year's event, canceling pre-sales and prioritizing user experience. This decision seemed to pay off, as more than 37,000 brands saw their sales double, and Taobao and Tmall held close to half of the market share among the five major domestic e-commerce platforms.
One of the standout features of this year's event was Taobao Live, which attracted hundreds of celebrities and CEOs to start live streaming on the platform. Taobao's website also underwent an overhaul in early May, resolving login issues and further supporting live streaming on the web version. This update is believed to have increased daily user visits to Taobao web live streams fivefold.
A testament to the success of the user-first strategy was the RMB 100 billion subsidy offered during the 618 event. This move resulted in a staggering 445% increase in gross merchandise value (GMV) compared to last year's promotion.
In an effort to benefit consumers nationwide, Taobao designated Xinjiang as a free shipping zone. This decision not only benefited Xinjiang residents but also had a positive impact on long-distance relationships, as one Henan netizen shared his story. With his girlfriend from Xinjiang often facing logistical and shipping cost barriers, the free shipping zone has finally allowed him to show more care for her.
The focus on user experience extended to beauty and skincare sales, which saw a 69.2% year-on-year increase during May 2024. Alibaba Group's management closely supervised Taobao and Tmall during the 618 shopping event to ensure both platforms and merchants improved the user experience.
Looking ahead, Taotian Group's CEO, Wu, has reaffirmed the company's commitment to a user-first strategy. With the growing number of internet users in China reaching 1.092 billion, as of December 2023, according to the China Internet Network Information Center (CNNIC), it seems that Taobao and Tmall are well-positioned to continue their growth and success.
