Taobao to launch millennial-driven retail concept
Taobao, one of China’s leading e-commerce platform is planning to strengthen its position as a top destination for millennial consumers whose purchasing power and willingness to spend exceeds that of previous generations.
Taobao is looking to create unique retail stores as a way to tap young middle-class consumers, who are dispositioned toward the different and off-beat. During its annual Taobao Merchants Summit in Hangzhou, the Alibaba Group-owned platform laid out these plans which include increasing the number of these hip, independent storefronts to 500,000 from the 100,000 currently on the platform, incentivising and helping merchants to scale their Taobao businesses and fostering an environment that encourages creativity. “Taobao is undergoing a major change, and (its user base) is getting younger and younger… This means the platform needs to become ‘younger’ as well, to serve the next generation of merchants and buyers,” Alibaba Group CEO Daniel Zhang said. “The key to ensuring Taobao’s vibrancy and sustainability is continuing to generate new, cutting-edge ideas and reducing the barriers for innovation,” he said. On an average, 480,000 Chinese consumers purchased items, such as apparel, furniture and jewellery, from an independent designer each day in 2017, according to a report by Taobao and CBNData. Indicating a rise in indie brands, the report found that the keyword “original design” was searched more than 170 million times on Taobao in the fourth quarter alone. The new focus on these merchants was part of a larger strategy outlined by Taobao president Jiang Fan to make the platform more inclusive and a home for creativity. “If I had to do one thing this year, that would be to make Taobao simpler, and bring (us) back to our original purpose,” Jiang said. Alibaba is famously known by its motto, “To make it easy to do business anywhere.” Taobao would work to make it easier for these merchants to sell on the platform. To that end, merchants will be able to tap into a range of Taobao’s promotional events, content-marketing resources and consumer analytics to better target their customers. In addition, they will benefit from Taobao’s goal to grow sales for 2,000 designated categories, including plus-sized fashion, children’s furniture, handicrafts and athletic gear. Taobao also said it would help grow consumer loyalty to these merchants through targeted membership strategies. Improvements will be made to the platform’s community-management tools as well, such as the instant messaging feature, which allows merchants to chat with consumers, get real-time feedback, build relationships with their top customers and sell their products within the groups. “We want each and every merchant to be able to put more energy into product development, into serving their customers. And help them unleash creativity and innovation,” Jiang said.