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Heavy! Taobao revealed major strategic adjustments

How to define Taobao and tmall now?

On May 20, Dai Shan, President of Alibaba’s China digital business sector, gave the answer at the annual tmall super brand private sharing meeting. When introducing the future strategy and changes of Taobao tmall, she put forward an important strategic choice, that is, from transaction to consumption and firm investment in content

Taobao’s content track focuses on browsing and live broadcasting. Different from the general grass planting platform, Alibaba, which started from transaction, insists on designing and exploring around the consumption decision driving users, forming a full link from discovery to grass planting, purchase to sharing in Taobao

In Dai Shan’s view, browsing and live broadcasting, as a new way, has become a necessary supplement to recommendation and search. The effective combination of the two can help users make simple consumption decisions and improve the business output. Taobao tmall’s content-based construction such as shopping and live broadcasting is not an end, but a means.

“Helping businesses stabilize the market and grow is the most important thing for me this year.”

Dai Shan further said that the core strategy of Amoy is to focus on 1 billion consumers, move from trading to consumption, do a good job in and deepen China’s consumer market, lock in certainty in uncertainty and explore new business opportunities in uncertainty

“retention” era

“Over the past year, the number of users, businesses and business volume have increased simultaneously, which proves that we are still the main consumption entrance more loved by consumers and the main position to bring deterministic growth to businesses.” Dai Shan also emphasized two sets of data, one is that the proportion of people under the age of 24 and people over the age of 45 is increasing rapidly, and the other is that the scale of paying members is also increasing rapidly, “the total number of 88vip members and money saving monthly card members is more than 50 million, of which the ARPU value of 88vip members is eight times the average value of the market.”

Previously, Alibaba reported a remarkable growth in active users. According to the financial report, by the end of 2021, the annual active consumers in the Chinese market were 979 million, while by the end of December 2020, Alibaba’s annual active users in the Chinese retail market were 779 million, which means that Alibaba added 200 million new users in China in 2021.

In addition, according to Dai Shan, the number of businesses has also exceeded 10 million, of which tmall Gmv has more than 100 million businesses, reaching more than 1000. Considering the size of Taobao tmall itself and the objective impact caused by the epidemic, this can be said to be a very good achievement.

But behind the achievements, it is inevitable that the penetration rate of China’s Internet is close to saturation. With the demographic dividend of the Internet exhausted, e-commerce platforms will enter the stage of stock competition. “Over the past two decades, we have fully enjoyed China’s demographic dividend, but this dividend is disappearing.” In this regard, Dai Shan pointed out that in the face of market uncertainty, 1 billion AAC is Alibaba’s biggest advantage and certainty. Around 1 billion AAC, deep penetration of users is my first choice

She further explained that in the past, it was a “flow era”. Today, the “flow” will become a “retained retention”, so as to maximize the value of consumers in the whole life cycle. “Therefore, I also made a very important strategic choice, that is, Taobao tmall moved from trading to consumption and added content.”

In fact, since its launch in 2016, Taobao has no longer been just a dazzling shelf. Since the revision and upgrading of the Buyer show community to “stroll” at the end of 2020, we have continued to cultivate the content and plant grass. By November 2021, Taobao has more than 200 million monthly live users and the daily peak has exceeded 50 million. In terms of commercial grass planting, during the double 11 last year, the total exposure of browsing in the grass planting period was as high as 25 billion times. Taobao live broadcast has also grown into a large-scale user transaction scenario on Taobao tmall platform. More directly, Taobao’s slogan has also changed from “Taobao, Taobao, you say good” to “great shopping!”

Up to now, Taobao has become one of the main sources of live broadcasting transactions. Over the past year, the cumulative number of viewing users of the platform has increased by more than 60 million, and the annual ARPU value of consumers in live broadcasting has also increased by 30%. In May 2021, Alibaba’s financial report data showed that the Gmv of Taobao live broadcast exceeded 500 billion yuan in the fiscal year.

store broadcast normalization

There is no doubt that live broadcasting will be a very mainstream model in the market in the future. “Taobao live broadcast is divided into talent live broadcast and business store broadcast. In the past few years, most of our attention has been focused on talent live broadcast, especially on the head live broadcast, which does not pay enough attention to business store broadcast. However, I believe that business store broadcast must play an important role in the future Taobao live broadcast ecology. ” Dai Shan asserted.

The brand sells in its own live broadcasting room, which not only saves the Commission and pit fee for the head anchor, but also precipitates users for the brand. After all, there is no correlation between the consumers who are loyal to the recommendation of an anchor and the construction of brand loyalty.

“When a user enters the Philips live studio from the public domain, he may not buy, but he may become a fan of the live studio. After that, we can still reach this group of interested users who have interacted with the brand through various channels.” Crystal, head of e-commerce marketing of Philips Greater China healthy life business, pointed out that the public domain traffic attracted by brand self broadcasting room will precipitate into interested users of the brand because of the products and contents in the live broadcasting room

Philips brand has opened its own broadcasting room in Taobao live broadcast in 2018. So far, it has more than 10 broadcasting rooms, and it is expected that there will be about 20 by the end of the year. According to the report of Taobao, the penetration rate of live broadcasting of key brands continued to increase by nearly RMB 10 billion in 2020, with Taobao accounting for nearly RMB 10 billion in total.

In addition, according to Alibaba’s 2021 investor day, in the year ending September 30, 2021, merchants’ self broadcast Gmv accounted for about 60% of the overall Gmv of Taobao live broadcast.

“The second half of content e-commerce has entered the competition of professional tracks, and the new traffic window has been opened.” Tao Fang, general manager of Taobao live broadcasting business group, said that in 2022, Taobao live broadcasting will focus more on the core keywords, intensive cultivation and efficiency improvement, value transition , to help businesses realize refined operation, improve business efficiency, expand output and find new value, including the value of brand influence, the incremental value of people and the value of efficiency improvement, so as to realize the leap of brand quality and efficiency.

Traffic is important, but brand self broadcasting pays more attention to operation and products. This coincides with the content-based construction of Taobao tmall. Daishan stressed, “Taobao tmall’s content-based construction such as shopping and live broadcasting is not the purpose of the platform, but just a way. we welcome merchants to give full play to your content capabilities and advantages in professional shopping guide, knowledge sharing and living grass planting. In the content-based construction of the platform, build consumer trust, achieve full link coverage and services from grass planting to consumption, and let 1 billion consumers visit Taobao app when they are busy 。”

full link connection

With the gradual improvement of Taobao content ecology, the transformation link between content and consumption is shortened. According to the data, Taobao has more than half of users browsing content every month, and more than 1 / 3 of orders come from content consumption

“Today, with a large population and longer duration of the Internet, more user loyalty can be formed through the technical means of the Internet, the creation of new products and services beyond user cognition.” Blowing snow, President of Taobao tmall industrial development and operation center, pointed out that such a positive cycle will eventually form the lifelong value of customers and is becoming the core vitality of enterprise operation.

Grass planting with content as the carrier is more in line with the current way of consumers’ mental touch. All kinds of grass planting contents bring consumers not only a simple description of goods, but also a way of life and even an attitude towards life.

For businesses, through planting grass, the communication with consumers is very deep and effective, which has also become a new channel for effective traffic transformation .

“There are shops in Taobao live broadcasting room as a stable input window, with stable transactions and accurate consumer groups. Secondly, the products with high customer orders sell better in Taobao live broadcasting, and the user acceptance is the highest.” The head of the chef brand said that in 2022, more attempts will be made in the content of the live studio for different groups, such as the introduction of “simple monthly meal” recipes for pregnant mothers and Baoma, the introduction of “lazy meal” for busy office workers, and the preparation of fat reducing meal recipes for fitness people.

brands, on the one hand, can complete the whole process from planting grass to pulling grass in Taobao, and the marketing is more accurate and quantifiable. On the other hand, through the operation of content, businesses have new ways to obtain new products, new trends and consumer product experience, helping businesses better understand consumers

Daofang said that in the past year, Taobao live broadcast has provided more than 600 million consumers with a consumption experience of “watching and buying”. With the characteristics of efficient communication and rapid transformation, live broadcasting helped more than 6000 brand members increase their transaction contribution by more than 100%. Last year, it helped brands accumulate 120 million members in the live broadcasting channel. More than 4000 new brands have achieved 500% growth. More than 4000 categories grew by more than 30% in live broadcasting.

The length of stay of users has become a real e-commerce traffic pool. As the centralized position of Taobao content, shopping and live broadcasting have taken up the banner of Taobao traffic growth is better. The Taobao tmall content ecosystem, which is composed of various professional content producers, including professional anchors, not only increases the visibility, but also helps consumers reduce the difficulty of consumption decision-making whether for shopping or live broadcasting, the professional content designed around driving users’ consumption decisions is a differentiated competitive advantage compared with other platforms.

In the view of blowing snow, the best investment today is to invest in consumers’ digital assets. In the future, we should deal with the continuous changes of the industry and such drastic changes in consumer demand. The core solution is that on the basis of comprehensive digitization, enterprises can directly face consumers, have a direct relationship with consumers, continue to influence consumers and establish a positive cycle of consumer assets.

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