Taobao: The World’s Largest eCommerce Website
What is Taobao and Why is it the World’s Largest eCommerce App?
Founded by Alibaba Group Holding, Taobao is a marketplace based in China. The platform, which is home to over 200,000 brands, has been compared to eBay because of its sales model where users can sell goods three ways: by negotiation, at a fixed price or through an auction. Taobao’s performance reportedly far exceeds eBay’s. Recently, consumers have turned to Taobao for a more personalized shopping experience. The app is the perfect combination of social media, technology and shopping, all in one place.
Taobao is the world’s largest eCommerce website and even surpasses popular online marketplaces such as Amazon which is also available in China. Among the growing number of Internet users shopping for merchandise online, Taobao is the top choice. More people are using the website and mobile app to shop by comparison. Performance numbers indicate that at the end of Quarter 3, the app had over 600 million users in 2018. When stacked against Amazon, Taobao outranked Amazon in the ‘Shopping’ category in Alexa’s rankings of the top websites in the world.
Taobao is completely changing eCommerce in China. Online shopping in China increased at a rate of 14.3% between 2016 and 2017. Over 533 million people are now shopping online. Taobao is the world’s largest eCommerce website and the top destination for younger shoppers who are making lasting connections with people and brands. China is expected to be the largest cross-border eCommerce destination in the entire world by the year 2020. Taobao is poised to continue its massive growth.
In China, Internet use is growing and so is the demand for innovative products. Often considered the incubator of technology, China is a driving force in what is hot. Right now and if projections prove to be correct, the swelling wave of online shopping will only increase in size. China supersedes the West in many areas including technology, and online shopping is no exception.
The Chinese possess an affinity for quality products, luxury brands and shopping experiences that they can trust; Taobao delivers all. Moreover, modern shopping in technology takes online shopping from brick and mortar stores to a virtual world where social selling ranks high among tastemakers and influencers.
Consumers looking for a one-stop shop will find it with Taobao. The website delivers products in virtually all categories including: fashion, electronics, appliances, furniture, baby supplies and more. A mobile app is also available for devices such as the iPhone, iPad, WinPhone and Android making the platform accessible in not only China, but all parts of the world.
Taobao offers a customized approach to shopping having ventured beyond the auction model that popularized dated sites such as eBay years ago. Taobao is the future of eCommerce in China. The platform is considered one of China’s most valuable brands having experienced extraordinary growth since its launch. In 2017, Taobao was worth $68B.
Taobao is the world’s largest eCommerce Website among Millennials
While there are other market places that are frequently used in China, Taobao is the world’s largest eCommerce Website that is frequented by millennials. In fact, research suggests that millennials make up 30% of the shoppers on the app. The younger generation uses the app regularly sometimes several times per day. Statistics show that the average Taobao user accesses the mobile app around 7 times per day browsing close to 20 products per session. The notable shopping behaviors of millennials is remarkable by all accounts.
The millennial population in China is five times larger in size than in the U.S. The tech-savvy shoppers have been described as being “super consumers” (Wang, 2017). Having experienced some of the benefits of a growing economy and thriving middle-class, many millennials in China are positioned to have more disposable income which means they are buying more products and spending more time online. As a result, activities such as engaging in social media, gaming and Internet shopping take up a significant amount of time each day.
In China, consumers have shown upward trends in mobile shopping, enjoying the convenience of browsing products and processing payments through hand-held devices; this is particularly true for younger shoppers. As shopping on mobile apps is on the rise, Taobao is the prime choice for the millions of users who conveniently shop from smartphones while going about their daily activities. Taobao offers a wide selection of products which appeals to the desire for variety. Having options is a strong selling point for the app which helps to draw loyal consumers that return many times over. App usage is only expected to increase in the coming years and the outlook is phenomenal.
Taobao is just as much about socializing as it is about selling. Features within app enable users to meet new people by connecting with those that have similar product interests. The website is part of what has been called an “ecosystem” under the Alibaba umbrella, has created its own virtual community in which users play an active role in cultivating innovation and tailoring their own shopping experiences.
To meet the demands of consumers in China, stores on Taobao are opening up at a rapid pace. Selling merchandise on the platform is easier in comparison to other websites. Both new and seasoned marketers will enjoy the business model that Taobao has developed as it is formulated for success.
A testament to this growing success is the number of influencers in China have started to open up their own stores on the site. Fashion bloggers have found success creating promotional content and blogging about popular brands only to launch their own brands while partnering with clothing manufacturers. The content creators are now able to sell products on Taobao which creates an additional stream of revenue for their brands.
Taobao strikes a nice balance between buyer and seller while fostering a favorable user experience. The platform is an ideal solution for new businesses looking to expand into the Chinese market. Customers that use the app are interested in the latest products which means that foreign international brands have an opportunity to reach a new market. The Chinese have also shown an interest in U.S. brands such as Apple and products by other small to medium sized startups. Taobao demonstrates excellent potential for emerging businesses looking to get their products into China through a cutting-edge platform that understands its consumers.
