Taobao

Last updated
Taobao
Taobao logo (2021).svg
Type of site
 Consumer-to-consumer and E-commerce
Available in Chinese
Owner Alibaba Group
URL www.taobao.com OOjs UI icon edit-ltr-progressive.svg
CommercialYes
LaunchedMay 2003 (2003-05)
Current statusActive
Written in PHP [1]
Taobao
Taobao (Chinese characters).svg
"Taobao" in Simplified (top) and Traditional (bottom) Chinese characters

Taobao's mascot is a dialogue bubble, which represents its corporate culture. Ma introduced Taobao to the outside world by stating, "We are the ant army." Ma once organized more than 2,000 employees to gather at a gymnasium to celebrate the 5th anniversary of the founding ceremony. At the party, Taobao employees waved the Taobao mascot — the flag of "ants." At the end of the celebration that lasted for four hours, all the employees stood hand-in-hand, singing "If you do not experience wind and rain, you cannot see the rainbow. The ants that be organized together can beat the elephant." [ citation needed ]

Shop feedback

A good way to investigate a Taobao shop is by clicking the shop's rating icon. For Tmall.com shops, people click the stars to view their ratings. Taobao users usually read feedback and compare items from multiple shops. [17] Feedback can be genuine or artificial, requiring users to make their own judgments. Feedback can be posted by competitors.

Every trade deal includes a section of customer feedback. Shop owners often put effort to maximize positive comments. Negotiations may happen between sellers and consumers over their satisfaction ratings.

Taobao uses search tools and other functions to understand user demands. Customers are asked to complete surveys that ask:

Other features

Taobao Marketplace offers various features and services to create a better user experience for online shoppers and retailers. [18] In January 2010, it launched the Taobao app, created by independent developers through the Taobao Open Platform, to be downloaded by consumers in Taobao App Store. [19]

In March 2010, it introduced the Taobao Data Cube platform, which gives small businesses access to its aggregate consumer transactions data for insight into industry trends. [20]

In June 2010, it partnered with Wasu Media Internet Limited to launch Taohua, a digital entertainment products platform, and interactive digital television shopping, that are operated by a joint-venture formed by the two companies. [21]

Weitao

Weitao is a private shopping assistant/blog for Taobao/Tmall customers. [22] It is a micro-blogging feature for brands and merchants on its e-commerce sites Taobao and Tmall. [23]

Services

Alipay

Launched in 2004, Alipay (simplified Chinese :支付宝; traditional Chinese :支付寶; pinyin :Zhīfùbǎo) is an escrow-based online payment platform. It is the preferred payment solution for Taobao Marketplace. It is the most widely used third-party online payment solution in China. [24] To ensure safe transactions, Alipay uses an escrow system through which payment is only released to the seller once the buyer has received goods in satisfactory condition. According to the Alibaba Group website, Alipay partners with multiple financial institutions as well as Visa and MasterCard to facilitate payments in China and abroad. [11]

Alipay systems are separate for different groups of users. For instance, Alipay users may send and receive funds if they have an account that have a credit card issued in China, whereas users with other cards may only use Alipay to pay for goods or services from Taobao. [25] This has proven problematic for international users, as they are unable to receive refunds not issued via the Taobao system.

Regulatory changes issued by the People's Bank of China (Central Bank of China) are set to alter the Chinese online payment ecosystem. Top-tier digital payment services such as WeChat Pay and Alipay transferred all relevant transaction data to appropriate agencies starting June 30, 2018.[ citation needed ]

AliExpress

Aliexpress AliExpress pavilion on the territory of the Leningradsky railway station.jpg
Aliexpress

AliExpress was created in April 2010 as an international retailing website. People who live overseas can use the service to purchase items from Chinese manufacturers online. [26]

AliWangWang (TradeManager)

Taobao Marketplace allows buyers and sellers to communicate prior to the purchase through its embedded proprietary instant chat program, named AliWangWang (Chinese :阿里旺旺; pinyin :ĀlǐWàngWàng). [27]

Baopals

In February 2016, 3 expats living in Shanghai launched Baopals, a shopping platform that translates Taobao and Tmall into English so that foreigners living in China can access of its products and services. Over 2.4 million items have been sold on the platform.[ citation needed ]

Happy Taobao

In Dec. 2009, Taobao, together with Hunan TV, set up Happy Taobao, Inc for television shopping. Hunan TV launched an entertainment series called "Happy Taobao", while Taobao Marketplace created channels and independent websites.

Taobao Live

In 2018, Alibaba launched the streaming service named Alibaba Live. This service was created with the goal of allowing online retailers to market their products utilizing social shopping. [28] This has seen significant growth in popularity and success, with the 84 stores using this service reporting $7.4 million in 2020 sales. [29] Taobao stated that they predict live-streaming on their platform will generate over 500 billion sales transactions. [30] Taobao Live now has over 10,000 weblebrities promoting a wide range of items including as cosmetics, apparel, cuisine, and numerous electrical gadgets. Taobao Live's daily sales have already surpassed $3 billion. [31]

Alibaba promotes a new style of live streaming, called cūnbō (村播), that features rural sellers. Taobao has given them their own category in the app, with the purpose of making it easier for these rural sellers to find customers and followers on the platform. [32]

Singles' Day

Singles' Day (also known as the Double eleven shopping carnival, as in 11/11) is the largest Chinese online shopping day. It takes place on 11 November each year. [33] It takes the advantages of the Chinese singles day that was created by Chinese university students to celebrate their bachelordom. After the event was launched, it obtained widespread attention, attracting other e-commerce companies to imitate this model.

Singles day grew rapidly since its introduction in 2009. 2009 sales reached RMB50 million (£5.68 million): [34] Sales grew rapidly thereafter:

In 2016, Alibaba introduced the T-mall double eleven party, inviting celebrities who took part in a Victoria's Secret show. At the 2017 party, Jack Ma launched his film Gong Shou Dao [35] (Defend the Homeland with Kungfu).[ citation needed ]

Because of the huge trading volume and income in Singles Day, Taobao launched another promotional activity on December 12 (12/12), drove record trading every year thereafter.[ citation needed ]

Strategy

On March 29, 2016, Alibaba Group CEO Daniel Zhang pointed out three strategic directions for Taobao: more community-based, more content-enabled, and local adapted.

Taobao extensively uses shopping strategies such as data personalizing, customer loyalties, video broadcasting and the focused demand of a single community to build stages for sellers to display their commodities. It is constructing a new ecosystem from content production, to content propagation, and content consumption with Alibaba's cooperating internet platforms, including Youku, Weibo, Alimama and Alifilms.

Technology

Adaptive Agent

Taobao applies a search tool named 'adaptive agents'. An adaptive agent picks up signals from consumers’ purchase records, including categories, brands, functions and colors etc.; The search engine involves the scanning of a particular bar code. Taobao tracks customers' purchasing history and reorganizes it into selections that the buyer is likely to be attracted to.

An adaptive agent works by updating prior models using new data via Bayes' theorem (Laplace's method). The possibility of the occurrence of a certain event can be estimated through the frequency of its occurrence in the past. The ranking of a product or a page can be determined by the combination of its prior information plus its posterior data of click transaction.[ citation needed ]

The popularity of Taobao's searching model is based on the calculation of correlation rate and quality scores:

Taobao automatically classifies product text and images and uses tags to match. Semantic search solves the correlation problem that keyword texts cannot solve, such as images, complex texts, and ambiguous texts. Semantic search is a recommendation system that presents customers with similar items that consumers might not find when searching one keyword. Entity tagging and other classifications are used.[ citation needed ]

Markets

Taobao for Southeast Asia

In September 2013, Taobao launched its Southeast Asian site. A translation feature is available for major languages in Southeast Asia. [36]

Controversies

In August 2017, the company removed controversial vendors offering personalised messages featuring African children over concerns of child exploitation. Some Chinese Taobao vendors claimed that their promotional videos featuring African children were "charity activity" in which most of the profits goes to the children. However the situation proved more complicated after a photographer contacted by the Beijing Youth Daily said "the children only received snacks or a few dollars as reward", indicating that there was legitimate child exploitation. [37]

In 2019, Taobao removed all items related to the Houston Rockets in response to the organization's general manager Daryl Morey posting a tweet about Hong Kong. [38]

In October 2020 amid rising geopolitical tensions between Taipei and Beijing, Taobao announced that it would exit the Taiwanese market after the Taiwanese government ordered the company to re-register as being backed by China or to leave the island if they don't. [39]

The mobile app of Taobao was banned in India (along with other Chinese apps) on 2 September 2020 by the government, the move came amid the 2020 China-India skirmish. [40] [41]

In 2022, the Office of the United States Trade Representative named Taobao on its list of Notorious Markets for Counterfeiting and Piracy. [42] [43]

Metrics

Taobao Marketplace had more than 5 million registered users as of June 2013 and hosted more than 80 million product listings. [44] It facilitated approximately RMB 200 billion in gross merchandise volume in 2009. [45] In September 2013, Taobao ranked 12th overall in Alexa's internet rankings. [46] For the year ending March 31, 2013, the combined gross merchandise volume (GMV) of Taobao and Tmall.com combined exceeded RMB 1 trillion.[ citation needed ] As of 2021, Taobao was the 8th most visited website in the world and the 5th most visited website in China. [47]

Taobao villages

Taobao villages are rural Chinese villages where the local economy has developed to focus extensively on Taobao. [48] : 112  Alibaba's research division defines Taobao villages as those in which (1) businesses are located in an administrative village in a rural area, (2) the village's annual e-commerce revenues exceed RMB 10 million, and (3) the village has either an excess of 100 active online shops or active online shops account for more than 10% of village households. [48] : 112 

Related Research Articles

E-commerce is the activity of electronically buying or selling products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce is the largest sector of the electronics industry and is in turn driven by the technological advances of the semiconductor industry.

<span class="mw-page-title-main">Online shopping</span> Form of electronic commerce

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.

Amazon China, formerly known as Joyo.com, is an online shopping website. Joyo.com was founded in early 2000 by the Chinese entrepreneur Lei Jun in Beijing, China. The company primarily sold books and other media goods, shipping to customers nationwide. Joyo.com was renamed to “Amazon China” when sold to Amazon Inc in 2004 for US$75 Million. Amazon China closed its domestic business in China in June 2019 after the US severed all relations with china, offering only products from sellers located overseas.

<span class="mw-page-title-main">Alibaba Group</span> Chinese multinational technology company

Alibaba Group Holding Limited, branded as Alibaba, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via Chinese and global marketplaces, as well as local consumer, digital media and entertainment, logistics and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.

An online marketplace is a type of e-commerce website where product or service information is provided by multiple third parties. Online marketplaces are the primary type of multichannel ecommerce and can be a way to streamline the production process.

Alipay is a third-party mobile and online payment platform, established in Hangzhou, China in February 2004 by Alibaba Group and its founder Jack Ma. In 2015, Alipay moved its headquarters to Pudong, Shanghai, although its parent company Ant Financial remains Hangzhou-based.

<span class="mw-page-title-main">Singles' Day</span> Unofficial Chinese holiday

The Singles' Day or Double 11, originally called Bachelors' Day, is a Chinese unofficial holiday and shopping season that celebrates people who are not in a relationship. The date, 11 November (11/11), was chosen because the numeral 1 resembles a bare stick, which is Chinese Internet slang for an unmarried man who does not add 'branches' to the family tree. The four '1's also abstractly refer to the demographic group of single people. Ironically, the holiday has become a popular date on which to celebrate relationships: more than 4,000 couples got married in Beijing on this date in 2011, far greater than the daily average of 700 marriages.

Tmall, formerly Taobao Mall, is a Chinese-language website for business-to-consumer (B2C) online retail, spun off from Taobao, operated in China by Alibaba Group. It is a platform for local Chinese and international businesses to sell brand-name goods to consumers in Greater China. It has over 500 million monthly active users, as of February 2018. In the last few years, it has opened its features to brands, not only for online sales but also for developing brand awareness. According to Alexa Rank, it is the third most visited website globally in 2021.

Online supermarkets in China are shopping websites that offer grocery buyers a complete shopping solution from a single online platform. The emphasis on these sites is to provide consumers all the products they would normally find on a supermarket shop floor, but delivered direct to the house or office door. Customers pay for goods with popular online payment systems such as Alipay, or by bank transfer, or cash on delivery.

<span class="mw-page-title-main">AliExpress</span> Online retail service based in China

AliExpress is an online retail service based in China and owned by the Alibaba Group. Launched in 2010, it is made up of small businesses in China and other locations, such as Singapore, that offer products to international online buyers. It is the most visited e-commerce website in Russia and was the 10th most popular website in Brazil. It facilitates small businesses to sell to customers all over the world. AliExpress has drawn comparison to eBay, as sellers are independent and use the platform to offer products to buyers.

Peng Lei, also known as Lucy Peng, is a Chinese billionaire businesswoman. She is one of the founders of the e-commerce company Alibaba Group. As of March 2017, Peng was one of 21 self-made women billionaires in China.

Ant Group, formerly known as Ant Financial, is an affiliate company of the Chinese conglomerate Alibaba Group. The group owns the world's largest mobile (digital) payment platform Alipay, which serves over 1.3 billion users and 80 million merchants, with total payment volume (TPV) reaching CN¥118 trillion in June 2020. It is the second largest financial services corporation in the world, behind Visa. In March 2019, The Wall Street Journal reported that Ant's flagship Tianhong Yu'e Bao money-market fund was the largest in the world, with over 588 million users, or more than a third of China's population, contributing cash to it.

Baopals is an online shopping platform based in Shanghai, China, that enables users to shop from Taobao, Tmall and Jingdong (JD) in English. The platform serves as a bridge to products and sellers from these Chinese platforms, with information updated in real-time and translated to English. Product organization, customer service, payment, and delivery are geared towards non-Chinese users. The platform is accessible online as well through the company's official WeChat service account.

The wanghong economy [internet celebrity economy] refers to the Chinese digital economy based on influencer marketing through social media platforms. Wanghong is the Chinese term for internet celebrity. Chinese wanghong celebrities attract the attention of internet users, which can translate into profit through e-commerce and online advertising.

WeChat Pay, officially referred to as Weixin Pay in China, is a mobile payment and digital wallet service by WeChat based in China that allows users to make mobile payments and online transactions. As of March 2016, WeChat Pay had over 300 million users. WeChat Pay reached 1.133 billion active users in 2023. WeChat Pay's main competitor in China and the market leader in online payments is Alibaba Group's Alipay. Alibaba company founder Jack Ma considered the red envelope feature to be a "Pearl Harbor moment", as it began to erode Alipay's historic dominance in the online payments industry in China, especially in peer-to-peer money transfer. The success prompted Alibaba to launch its own version of virtual red envelopes in its competing Laiwang service. Other competitors, Baidu Wallet and Sina Weibo, also launched similar features.

<span class="mw-page-title-main">Daniel Zhang</span> Chinese business executive

Daniel Zhang Yong is a Chinese business executive who was the executive chairman and chief executive officer of Alibaba Group. Before becoming Alibaba's chief, Zhang was best known for his roles as CEO of Taobao and president of Tmall. While running Tmall, Zhang created the Singles' Day shopping holiday, an annual Chinese sales event with gross sales reaching four times higher than Black Friday and Cyber Monday combined.

AliGenie is a China-based open-platform intelligent personal assistant launched and developed by Alibaba Group, currently used in the Tmall Genie smart speaker. The platform was introduced in 2017, along with the Tmall Genie X1, at Alibaba's 2017 Computing Conference in Hangzhou.

BATX is an acronym standing for Baidu, Alibaba, Tencent, and Xiaomi, the four biggest tech firms in China, often compared to GAMA in the United States. BATX were some of the first tech companies started in the 2000s during the rise of the Chinese technology revolution and quickly became widely used among Chinese netizens. Notably after 2015, some other tech companies like Huawei, DiDi, JD, DJI and ByteDance have also become some of the up-and-coming biggest tech giants in the industry.

Tianhong Asset Management Co., Ltd. is a Chinese asset management company founded in 2004. From 2014 it was considered the largest asset management company in China until 2021. Its most notable product is the Tianhong Yu’e Bao fund which at one point was the world's largest money market fund.

Taobao villages are rural Chinese villages where the local economy has developed to focus extensively on e-commerce via the Taobao online retail platform. Taobao villages have contributed to economic development and rural revitalization in China.

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