Alibaba & Taobao

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Background

China's growing mobile market is driving online consumer spending: Chinese people now spend more money online than ever before, whether it's luxury or groceries. This is why e-commerce sites are an important platform for international media buyers who want to gain branding in the Chinese market. Allibaba Group is the owner of online shopping leaders Taobao and Tmall. (https://zigt.com/taobao-and-tmall-advertising-on-chinas-leading-e-commerce-sites/) 





Alibaba and Taobao



Alibaba is a company in which comprised of core commerce cloud computing, digital media and entertainment, and innovation initiatives. Most famous service is the E-commerce service -- Taobao, which was established in May10. 2003 and invested by the founder of Alibaba Group. Taobao is the largest network of retail and business circle in Asia. (https://pdfs.semanticscholar.org/5d9c/7afd2d6892390f2337352fa24645e763c985.pdf). Taobao is the most popular online retail platform in China, it owns 500 million registered users, and there are more than 60 million fixed visitors per day. The number of online products has exceed 800 million at any given time, with an average of 48,000 items sold per minute. 

 Here is a video to show more information about Taobao.



Taobao and Social Media 


Social networks 

  • Publicity
- Celebrities: Taobao pays for celebrities to endorse its brand to attract more fans to buy products. 

- Advertising: Advertising on Taobao/ Tmall goes through Alibaba's ad system. The owner of Taobao, Alibaba Group, in one of China/s most powerful companies-- which is also what makes it interesting to advertisers. Besides Tao and Tmall, the companies of Alibaba Group also include China Yahoo, AliExpress, and others, along with shares numbers of other companies (such as Weibo and Youku). Due to Alibaba's large affiliate network, Taobao advertisers can also allow their ads to become visible on partner properties. Besides China's search engine Baidu, Alibaba Group Runs one of the biggest online advertising businesses in China. (https://zigt.com/taobao-and-tmall-advertising-on-chinas-leading-e-commerce-sites/)

  • Participate 
- Weibo is the APP with characteristic of quickly spread, large population (especially young age people) using and easy to share comments. It is easily to share Taobao's products links through other APP such as Weibo and Wechat (third- party). 

- People could ask their friend to help them pay for the products.

- Recommendation of other products that customer may interested in.



People reacting to each other: ratings and reviews

-       Comments &views
The APP and website of Taobao allows and encourage customers to comment with products that they bought. People who is consider to buy these products could look at the comments and to decide whether to buy. 


For example, the right had side pictures shows this online store has already operated by 5 years, all of the description rate, service rate and logistic rate are 4.8 which indicate that the most consumers think that products are generally same with descriptions, the store has good customer service when they need help, and the logistics are fast. Thus, this shore is a good choice for consumers based on the high rates.







This picture shows comments of the products, consumers could use these information to make decisions as well.


Organizing content: tags

- Tagging is very common on Taobao website. The home page of Taobao's website classify various products into different categories, such as clothing, furniture, bag, etc. 

- These two pictures show the classification and tags on Taobao PC version and Taobao Phone version. It is clear for consumers to find products that they want to buy. 




Technology Test --- New technology

  • Based on above information and analysis, we could say that Taobao allows people to connect with each other in a new way. 
  • It is effortless to sign up for.
  • Taobao (Alibaba) did shift power from institutions to people.
  • It is an open platform that invites partnerships.





Q: What do you think lead Taobao became so successful in China?
Q: Alibaba is currently trying to expand its businesses around the world, what do you think is the most important thing for Alibaba to expand its business, could you give some suggestions for Alibaba if it want to entry your country's market.

Comments

  1. Xin's BlogSeptember 18, 2018 at 8:00 PM

    Hi Grace,

    I'm very like topic. Actually, Taobao have significant impact in China. Comments and Review is very important for company to improve their quality, also for customer, it is very convenient that customer can evaluate stuff.

    ReplyDelete
  2. Simone M.September 19, 2018 at 6:10 AM

    Grace, I was very excited to see this post because I just returned from studying abroad in China, where I used Taobao excessively. I agree with Xin, that comments and reviews bolstered Taobao's success. Additionally, the user interface is quite easy and the transparent process of ordering and delivering a product is extremely convenient for the customer.

    ReplyDelete

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