Taobao, the challenge to Pinduoduo passes through the “value for money” area

06/04/2019

The move shows a clear reference to the model already experimented by Pinduoduo

Taobao, Alibaba’s retail platform, has opened a new area to promote “premium value” products, but at relatively low prices. The new space will always be within the application and the move shows a clear reference to the model already experimented by Pinduoduo.

Currently on Taobao sellers can show products that meet certain criteria, such as the guarantee of authenticity, and, in addition, products that are sold at a record price within 90 days.

 

70% of new users in 2018 came from third and fourth tier cities

 

This positioning will allow sellers to be more visible to the 699 million monthly active users of Taobao. At the moment, however, these products are visible only to a part of these users.

70% of the 120 million new users added by Taobao in 2018 came from the cities and rural areas of China, the third and fourth tier cities. This indicates that the “value for money” function was introduced to meet their needs.

 

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