淘宝网
taobao.com
Reinventing (E-)Commerce
strategyzer.com/vpd
Taobao, part of the
Alibaba Group, is China’s
largest online shopping website.
Here follows the three-act
story of its evolution since
it began in 2003….
1
Platform-building from
the ground up
With a growing middle class and
Internet connectivity, Taobao sees
an opportunity to boost commerce
by connecting Chinese consumers
and sellers online.
But lack of trust and a largely
missing infrastructure create
challenges…
at I
h
w
tly
Exac ant
w
Get pa
id 100
%
of the
times
Instant
Acces,
use
es
spons
e
r
t
s
a
F
Highes
t price
High P
w and
e
n
l
l
e
S
ods
o
g
d
e
us
rices
Low qua
lity
st
Lack of Tru
Chinese
consumers
nd
Find a
ods
o
g
e
r
i
acqu
ocess
r
p
t
’
n
Ca
nts
payme
Non-e
xiste
logisti nt
infrast cs
ructur
e
o
cess t
c
a
r
o
Po
ers
custom
Chinese
sellers
Taobao first focuses on creating
trust and on building the missing
infrastructure…
淘宝网 taobao.com
Expres
s
logisti
cs
provid
ers
Developing
commerce
infrastructure
Banks & Alip
ay
Two-way review
system
…to create new value propositions
for consumers and sellers alike.
淘宝网 taobao.com
Expres
s
logisti
cs
provid
ers
Developing
commerce
infrastructure
Web Retail with
best price/
quality
Retail sales
platform
Banks & Alip
ay
Two-way review
system
IT
Online
customer
service
Infrastructure
development
taobao.com
0.- (subsidized
by Alibaba)
2
Shift towards microentrepreneurs
Sellers discover an opportunity to
create a business and become
micro-entrepreneurs with a set of
“business-like” jobs, pains and
gains.
Get pa
id 100
%
of the
times
nses
o
p
s
e
r
Fast
nized
Recog
brand
Repea
custom t
ers
Sell pr
oducts
Highes
t price
w and
e
n
l
l
e
S
ods
o
g
d
e
us
Easy a
dmin
ng
a livi
Make
iness
s
u
b
o
N
ence
experi
ocess
r
p
t
’
n
Ca
nts
payme
Non-e
xiste
logisti nt
infrast cs
ructur
e
o
cess t
c
a
r
o
Po
ers
custom
Chinese
sellers
aking
Not m oney
hm
enoug
sion
pas
a
l
l
fi
l
u
F
No cus
to
knowle mer
dge
Microentrepreneurs
Sellers become
micro-entrepreneurs…
淘宝网 taobao.com
Expres
s
logisti
cs
provid
ers
Developing
commerce
infrastructure
Web Retail with
best price/
quality
Retail sales
platform
Banks & Alip
ay
Two-way review
system
IT
Online
customer
service
Infrastructure
development
taobao.com
0.- (subsidized
by Alibaba)
…Taobao shifts focus, adds
service providers and adapts its
value proposition…
淘宝网 taobao.com
Expres
s
logisti
cs
provid
ers
Help
entrepreneu
rs
succeed
Developing
commerce
infrastructure
builssinaelesss
GroRweta
platform
Banks & Alip
ay
App developers
+ fashion
models
IT
Web Retail with
best price/
quality
Online
customer
service
Two-way review
system
Infrastructure
development
taobao.com
0.- (subsidized
by Alibaba)
…and creates revenue streams to
turn a profit for the first time.
淘宝网 taobao.com
Expres
s
logisti
cs
provid
ers
Help
entrepreneu
rs
succeed
Developing
commerce
infrastructure
IT
Training &
empowerment
builssinaelesss
GroRweta
platform
Banks & Alip
ay
App developers
+ fashion
models
Web Retail with
best price/
quality
Online
customer
service
Two-way review
system
Infrastructure
development
taobao.com
0.- (subsidized
by Alibaba)
Premium for
advanced sh
op
features
Ads
3
Growing audience is
basis to new business
Access to millions of Chinese
consumers becomes the basis of a
new value proposition to a new
customer.
Reliable
shopping
engine
Reach Chinese
mass-market
Sales statist
ics
Grow sales
Customer
acquisition cost
Harsh
competition
Develop brand
Effort to
establish
presence
Big Brands
loyalty
Millions of consumers
become a precious asset…
淘宝网 taobao.com
Expres
s
logisti
cs
provid
ers
Help
entrepreneu
rs
succeed
Developing
commerce
infrastructure
Training &
empowerment
builssinaelesss
GroRweta
platform
Banks & Alip
ay
App developers
+ fashion
models
Web Retail with
best price/
quality
Online
customer
service
Two-way review
system
taobao.com
Millions of
Chinese
consumers
IT
Infrastructure
development
0.- (subsidized
by Alibaba)
Premium for
advanced sh
op
features
Ads
…Taobao leverages this asset
for a new value proposition …
淘宝网 taobao.com
Expres
s
logisti
cs
provid
ers
Help
entrepreneu
rs
succeed
Developing
commerce
infrastructure
Two-way review
system
Millions of
Chinese
consumers
IT
Training &
empowerment
builssinaelesss
GroRweta
platform
Banks & Alip
ay
App developers
+ fashion
models
Web Retail with
best price/
quality
Online
customer
service
Infrastructure
development
taobao.com
One stop
presence
0.- (subsidized
by Alibaba)
Premium for
advanced sh
op
features
Ads
…to a new lucrative
customer (big brands).
淘宝网 taobao.com
Expres
s
logisti
cs
provid
ers
Help
entrepreneu
rs
succeed
Developing
commerce
infrastructure
Two-way review
system
Millions of
Chinese
consumers
IT
Training &
empowerment
builssinaelesss
GroRweta
platform
Banks & Alip
ay
App developers
+ fashion
models
Web Retail with
best price/
quality
Online
customer
service
Infrastructure
development
taobao.com
One stop
presence
tmall.com
0.- (subsidized
by Alibaba)
Premium for
advanced sh
op
features
Membership
Ads
2-5% of sales
fees
Lessons Learned
Taobao created three
different types of
business models
(and value propositions)
in just ten years.
?
2008:
Big B2C
2006:
Small B2C
2003:
C2C
Watch evolving context on
platform and in wider
economy and society
Develop capability to
reinvent by responding
to changes with new
business models and
value propositions
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