Alibaba Financial Report: 88VIP Members Exceed 42 Million, Taobao's "User First" Strategy Takes Effect
2024-08-16
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Zhu Yao, reporter of Chao News Client
On August 15, Alibaba Group announced its first quarter results for fiscal year 2025. The financial report showed that Taobao Group's total merchandise volume (GMV), number of buyers, and purchase frequency continued to maintain high growth, and the order volume achieved double-digit year-on-year growth.
The number of 88VIP members continued to grow by double digits year-on-year, exceeding 42 million, compared with 35 million in the previous quarter. In first-tier cities, one in every ten people is an 88VIP.
88VIP is a paid membership service launched by Taobao and Tmall on August 8, 2018. In the six years since its launch, membership benefits have been expanded many times, gradually expanding from the Alibaba ecosystem to the outside, and accumulating a large number of highly active, high-purchasing-power and high-stickiness users for the platform. 88VIP members have a higher degree of brand recognition, and their annual consumption on Taobao and Tmall is significantly higher than that of ordinary users. They are the most valuable population assets of Taobao and Tmall.
Since the beginning of this year, Taotian Group has carried out multiple rounds of upgrades to 88VIP member benefits. At the beginning of the year, it launched a number of member benefits such as daily prize draws for buying Moutai at the original price, exclusive 100% discount, and 50% off big brand internal purchases every day. And from April 22, it launched an unlimited return and shipping fee-inclusive service for 88VIP members.
During this year's Tmall 618, 88VIP launched a monthly shopping card for the first time. Consumers can activate it by spending 8.8 yuan in the first month, lowering the threshold for membership benefits. During the 618 period, Tmall invested more than 10 billion yuan in 88VIP, the largest amount in history. The threshold for using 88VIP large-value consumer coupons was also lowered from the original 1,500 yuan to 1,200 yuan.
After multiple rights upgrades, 88VIP's card opening rate and coupon collection rate have increased rapidly. In May 2024, the number of new 88VIP members increased by more than 3 times year-on-year. On the first day of sales on May 20, the number of 88VIP purchases increased by more than 50% year-on-year compared with 618 last year, the number of member visits increased by 40% year-on-year, and the average purchase amount per person increased by more than 30% year-on-year.
Young people have a strong desire to open cards. Among 88VIP members, the number of card openings by those born after 2000 increased by 533% compared with the same period last year, and increased by 226% month-on-month.
According to the data from the National Bureau of Statistics, in the first half of the year, the total retail sales of consumer goods reached 23,596.9 billion yuan. Among them, the online retail sales of physical goods reached 5,959.6 billion yuan, an increase of 8.8%, accounting for 25.3% of the total retail sales of consumer goods. The development momentum of online consumption is relatively strong, which has played a significant role in driving the growth of the total retail sales of consumer goods.
Taotian Group continues to pay attention to market dynamics and changes in user needs, and constantly adjusts and optimizes the service content and form of 88VIP, providing consumers with a more personalized and value-added service experience. This year, Tmall has expanded the scale of 88VIP rights cooperation, increasing the number of cooperative brands from 4,000 to 10,000, creating business opportunities for more brand merchants, further promoting consumer vitality and optimizing business experience.
At the end of last year, Alibaba Group CEO Wu Yongming said: "For core businesses, we will maintain long-term focus, maintain high-intensity resources and R&D investment, continue to improve user experience, ensure that products and services always keep up with user needs to iterate and evolve, and maintain long-term vitality and competitiveness."
Since the beginning of this year, Taobao and Tmall have adhered to the business orientation of "user first" and made every effort to improve the core experience of consumers. Increasing investment in 88VIP and upgrading benefits have driven the continuous growth of membership numbers, average customer spending, and number of card openings, bringing higher consumption willingness and repurchase frequency, which is a direct confirmation of the effectiveness of the "user first" strategy.
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