Analysis on the Success of Taobao

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ISBN 978-952-5726-00-8 (Print), 978-952-5726-01-5 (CD-ROM) Proceedings of the 2009 International Symposium on Web Information Systems and Applications (WISA’09) Nanchang, P. R. China, May 22-24, 2009, pp. 202-205

Analysis on the Successful Strategies of Taobao’s E-Commerce Yang Lixia 1, Liu Xun 2
College of Arts, Hebei University of Engineering, Handan, China Email: claireyang123@yahoo.com.cn 2 College of Mechanical Engineering, Hebei University of Engineering, Handan, China Email: cnliuxun@yahoo.com.cn Abstract—The improvement and the development of internet technologies have triggered the rapid development of E-commerce applications since 21st century. A number of E-commerce sites have been rising in China. But with the bursting of the bubble economy, most sites have been eliminated. As a new site with holding the idea of localization, the successful strategies of Taobao are worth our thinking and emulating. This paper mainly discusses Taobao’s success and its inspiration to the development of the domestic E-commerce. Index Terms—Taobao, E-commerce, successful strategies 1

Taobao’s successful experience is worth emulating by the domestic enterprises. II. ESTABLISHMENT OF TAOBAO

I.

INTRODUCTION

With the rapid development of the Internet, Ecommerce attracts more and more attention and becomes a focus as a business body engaged in the production and operation mode. Although the specific conditions of different countries based on the forecast of world economic development, governments are all paying more attention to the development of E-commerce. Ecommerce has become a new driving force for economic growth. Businesses of all sizes in all sectors are using the Internet in many different ways - to work with partners and suppliers, for procurement, for internal activities such as knowledge sharing and new product development, and much more. E-commerce in general can be divided into Business-to-Business and Businessto-Consumer. Besides, there is also Consumer-toConsumer, which is a fast developing pattern. In recent years, China has set off an upsurge of Ecommerce, our daily time more or less have the relations with it. According to CNNIC (China Internet Network Information Center) report, as of June 30, 2006, the number of Internet users in China reached 123 million, ranks second in the world. The number of shopping on the Internet has reached to 30 million, and the proportion of paying on the net has been increasing annually. Experts believe that the risen trends of the number of the Internet users and the people shopping on the net will make the Internet Shopping Mall into a new round of business battleground. Since 2000, the domestic Ecommerce transactions on the site once reached 100. As it is known, there are eBay, Yabuy, Coolbid, and so on. But with the bursting of the bubble economy, most sites have been eliminated. Through constantly enriching its contents and services, Taobao gradually makes itself a well-known E-commerce website and becomes the leader who exceeded eBay in one short year’s time. © 2009 ACADEMY PUBLISHER AP-PROC-CS-09CN001

In May, 2003, Taobao website was established by the biggest commodities trading site-Alibaba which invested one hundred million, and it provides a great platform for millions of Chinese people who prefer do shopping online, based on Alibaba’s market experience and service capabilities of BtoB (business to business). Taobao built the leading domestic net-market and the personal transaction net-community, by its flexible operating trade. It also provides online business services to millions of members in the world. Taobao had become the largest E-commerce trading platform over our country since it was established one year ago, and became the largest E-commerce shopping centre in Asia since the next year, and its action has influenced the whole industry, even the entire Internet. It can be seen from the rank of ALEXA in 2004, Taobao has reached 18th in the world [1]....
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