Q1 financial report GMV and order volume grew strongly, Taobao's "good products, good prices and good services" formed a positive cycle
2024-08-16
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On August 15, Alibaba Group announced its first quarter results for fiscal year 2025. Taobao and Tmall's performance continued the growth trend of the previous quarter. Taobao Group's total merchandise volume (GMV) increased by a high single digit year-on-year, the number of buyers and purchase frequency continued to grow, and the order volume achieved a double-digit year-on-year growth.
The financial report shows that this year's Tmall 618 promotion achieved strong growth in GMV. As an important population asset of Taotian Group, the number of 88VIP members continued to grow by double digits year-on-year, exceeding 42 million.
This means that in the fierce e-commerce competition, Taobao has not only maintained a stable market share, but its increased investment in "good products, good prices, and good services" has also formed a clear positive cycle effect.
This quarter, Taobao and Tmall have significantly optimized user rights, services, experience and merchant strategies in promotional activities. This year, Taobao's 510th anniversary celebration and Tmall's 618 promotion focused on the core experience of consumers. From May 6th to 10th, Taobao launched a series of free-order activities, providing millions of free orders for answering questions and free orders for historical orders. The simple and direct promotion activities attracted hundreds of millions of people to participate.
Tmall 618 cancelled the pre-sale that had been used for many years, increased the number of large coupons for 88VIP and beauty industries and issued them in advance, and Taobao and Tmall merchants' discounts were connected. These measures were welcomed by consumers and brought business boom to brand merchants. As of 24:00 on June 18, 365 brands had sales of over 100 million yuan on Tmall 618, and more than 36,000 brands doubled their sales.
Analysys International pointed out that during the entire 618 period this year, Taobao and Tmall's transaction volume increased by 12.0% year-on-year, exceeding the average growth rate of comprehensive e-commerce platforms; their market share accounted for 49.5% of the transaction volume of major e-commerce platforms, and their leading position in the e-commerce industry has expanded.
After multiple rounds of benefits such as free shipping for returns, points exchange for red envelopes, and 618 large-value coupons, 88VIP members have seen a large-scale expansion this quarter, with the number of members exceeding 42 million this quarter from 35 million in the previous quarter. In May 2024, the number of new 88VIP members increased by more than 3 times year-on-year. On the first day of Tmall's 618 sales this year, the average purchase amount per 88VIP member increased by more than 30% year-on-year. With the continuous upgrade of membership benefits, Taotian Group's advantage in high-purchasing-power users has expanded.
Taotian Group has adjusted its incentive mechanism to encourage merchants on the platform to participate in user-side investment and improve consumer experience. Taobao and Tmall began testing the new experience score system before 618, and recently launched it in full, bringing more traffic to merchants with high-quality products and good services in store operation scenarios such as Taobao search, homepage guess what you like, Alimama advertising, and event registration.
At the same time, Taobao and Tmall strengthen the cost-effective supply from industrial belts to well-known brands, providing high-quality and low-priced goods. Taobao's 10 billion subsidies launched a big-name "family bucket" event during the 618 period, with hundreds of big-name product sets snapped up at low prices. The "Taobao Factory" channel focuses on industries such as food and fresh produce, toys, and intensifies support for high-quality industrial belts. In July this year, Taobao Factory launched the official "factory brand" certification service for high-quality manufacturers, providing 13 exclusive support rights.
On the business side, Taobao and Tmall are committed to stimulating the vitality of the business ecosystem, helping merchants reduce their burdens and improve efficiency. Since the business tool "Business Advisor" became free in April this year, it has provided free value-added data products and services to more than 3 million Taobao small and medium-sized merchants. Calculated based on the pre-free pricing, the value of the products and services has exceeded 10 billion. After using the new version of Business Advisor, a large number of small and medium-sized merchants have achieved sales that exceeded expectations or even doubled in a few months.
In April this year, Alimama launched a new generation of promotion product "full-site promotion". After several months of internal testing, the product was fully optimized and recently launched. During Tmall 618, the merchants' products in the full-site promotion test increased their traffic by 105% and their sales by 43% compared with the homogeneous products that were not tested. This ensured the return on investment (ROI) of customers while achieving business growth.
Recently, Taobao and Alibaba International launched the "Global Free Shipping for Large Clothing" plan. Under the contract model adopted, merchants do not have to worry about refunds, returns and shipping insurance, creating a new model of low threshold and low cost to help merchants expand overseas markets.
Analysts pointed out that since the beginning of this year, Taobao and Tmall have continuously upgraded and improved their products and services under the business orientation of "user first", and have made a lot of investment in the construction of commodity supply, price power, efficiency, and good service, which has received generally positive feedback from consumers and merchants. Driven by the strong growth of Taobao and Tmall, domestic e-commerce has returned to the essence of business from traffic thinking and entered the ecological restoration period. "Good goods, good prices, and good services" have become a common topic for the development of e-commerce platforms.
Mengying
Proofread by Sheng Yuanyuan
