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Digital Marketing report for Taobao Essay Example

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Digital Marketing report for Taobao

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The company introduced a dedicated business to consumer platform known as Taobao mall, which offers exclusively high quality Chinese products to the Chinese market. Taobao mall established its own web link, Tmall.com, which focuses primarily on product verticals and gives clients an excellent shopping platform.In 2008, Taobaodecided to champion online sales for the Chinese economy by employing Big Taobao strategy,a strategy that guarantees undisputed current and reliable e-commerce infrastructure. In October 2010, Taobao beta established eTao, which is a search engine targeting specifically online shoppers and it provides useful products and merchant information from all e-consumer platforms across China. It enables users to access different prices offered by different sellers globally hence one can only choose the best rates before entering into a deal. After its undisputed landmark growth, Taobao started witnessing stiff competition from other e-commerce selling platforms and the company management opted to split it into three known asTaobao marketplace, Tmall and eTao each with a specific target market to satisfy.During implementation phase, Alibaba management decided that Taobao should not charge both sellers and buyers for a period of three years, during this period the company shall have acquired a substantial market share and earned trust of buyers. This strategy paid off very well and within two years, Taobao had captured 60% of the market share of all online buying in China (Xun&Lixia, 2009).In 2003, Taobao and the Industrial and Commercial Bank of China (ICBC) entered into an irrevocable agreement safeguarding buyers and sellers against fraud and default in payment. The bank undertook to process fully all payments then give an okay to both transacting parties to proceed by delivering goods so that the bank can release money to the seller. Both buyers and sellers welcomed this move as it alleviated fears of non-payment. With the increased user confidence, more parties readily participated in the online trading hence laying a firm foundation for Taobao’s business.In the year 2004, Taobao entered into an agreement with 21CN to establish a massive online shopping site in China. This arrangement provided users with communication services like messaging, email and calling hence consumers could communicate with sellers

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preview essay on Digital Marketing report for Taobao
  • Pages: 8 (2000 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Undergraduate
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