While amazon acts as b2c storefront, alibaba's many business arms delve into b2b with 1688com, c2c with taobao (淘宝), one of china's premier consumer-to-consumer marketplaces, established in 2003, and finally b2c with tmall (天猫), launched in 2008. Alibaba's taobao has only just started thinking international so the potential is surely there plus, the local chinese market remains lucrative as more internet users jump on board and become. Localization, the successful strategies of taobao are worth ebay in one short year's time taobao's success has brought many proposals to e-commerce in china. At the end of 2006, ebay cut its losses and shut its website because of taobao's success today, taobao is the global leader of e-commerce with 80% of the chinese market shares why taobao has achieved commercial success and not ebay.
E-commerce in china:taobao 7 taobao's specific advantages such as accurate market positioning, and proper marketing strategies also make contributions to its success. Started in 2003, taobao opened a gate for all retailers, from vegetables, groceries to pharmacies, sweets and bakeries, and many more it primarily caters to medium and small merchants. One of the secrets of taobao's success is its adeptness at understanding the quirks of how chinese shoppers want to transact, says barney tan, a senior lecturer in business at the university of sydney, who focuses on china's e-commerce.
1 taobao was an early adopter there was little to no competition back in those days and with people getting richer in both city and rural area, only those stayed near the shopping mall spend their newly earned money. The critical success factors for a product business are well known, starting with selling every unit with a gross margin of 50 percent or more, building a patent and other intellectual property. The key to success in china: the alibaba story for anyone doing business or shopping in china, alibaba is a household name the firm's online e-commerce platforms offer anything from heavy. Taobao's success 3 taobao's background and business model in may 10, 2003, taobao was founded by alibaba group and specialized in c2c e-commerce (consumer to consumer model) alibaba was founded in hangzhou in 1999, after nearly a decade of development, has grown into the world's largest online trading exchange market and the business.
The us-listed alibaba will include the company's fast-growing b2c platforms, taobao and tmall, but carves out the other jewels of alibaba group's empire, alipay and yu'e bao. At alibaba group's first staff meeting in 1999, a video shot by an employee shows jack ma rallying a workforce of 17 of his friends they met in a cement-floored apartment in hangzhou, a city. Taobao and tmall are among the most popular mobile apps in china (along with tencent's wechat), meaning that group buying is already within alibaba's ecosystem.
Taobao's success 1 taobao's success the most successful c2c e-business platform in china chenlei shi 865313 it is 600 professor robert testa, jr september, 18, 2010 taobao's success 2 abstract with the great speed of economic globalization, e-business is developing in a surprising speed through the wide-spread of information technology. Unraveling alibaba's success as trading platforms is important to understand the future of e-commerce in china on the theory side, alibaba provides a perfect example of two-sided market as a trading platform, it attracts both sellers and buyers. Taobao's success 5 problem was solved by ebay-each, but without doubt, ebay-each lost its advantage in credit transaction third, ebay-each used advertisement blocking tactics to fight taobao in 2003, the biggest three portal in china (sohu, sina, 163) made a deal with e-bay that they would never use taobao's advertisement. In the early days of taobao, thousands of online vendors found success simply by taking everyday products from china's shops and making them widely available online.
In 2003, alibaba founded taobao as direct competition to ebay in the year 2004, the group offered alipay the venture was an instant success alipay allowed customers to receive goods before payment was released to the sellers. This is crucial to the success of taobao china is widely code-named as the manufacturer of the world the countless variety of products manufactured in china, and these subsequently flow to taobao, is the underlying factor for taobao's success. So our early strategy was to focus on member growth over revenues, which is why we made taobao's services free, while ebay continued to charge as taobao's growth took off, ebay china's growth stalled and, after investor pressure finally caught up with them, ebay shut down its china site.
Success never comes easy neither is the struggle faced to achieve the heights we imagine for ourselves or our ventures the alibaba founder, jack ma, also struggled for over a decade for the survival of taobao and tmall. One of the secrets of taobao alibaba's success is the persistent pursuit of innovation, always heading at the first of the market in today's e-commerce c2c market of china, taobao global will likely continue to hold the leading position. Amazon has earned the moniker the everything store in the us, but in china alibaba's e-commerce sites, especially taobaocom, dominate, with amazon almost nowhere to be seen.