In addition to the great potentials of the market of China, the new marketplace will bring together the strengths of both companies. EBay EachNet’s global e-commerce knowledge and large and active trading community in China, and TOM Online’s local market knowledge and active wireless user base of more than 75 million. The new marketplace will bring enhanced online and mobile opportunities to buyers and sellers in China, evolving eBay’s participation in China and extending TOM Online’s wireless service portfolio into m-commerce. Upon the launch of the new marketplace, eBay EachNet users will be invited to transition to the new site, and TOM Online will work to deliver its user traffic to the site as well.…
The dominant online trading platform, eBay, is having a difficult time expanding into the Asian markets, especially in China. Despite eBay’s previous failure to penetrate the Chinese market, the company needs to develop an effective strategy to compete in China’s markets against existing local competitors.…
By 2008, Jack Ma, CEO of Alibaba.com Inc., was in a position to consider how to fortify Taobao’s dominant position in China’s online consumer-to-consumer (C2C) market. Ma and his company had come a long way since May 2003, when they first launched the Taobao website. Back then, eBay China dominated the fledgling market, holding over 70 percent share. It had entered China with its acquisition of the start-up EachNet, and was actively building upon that company’s first-mover advantage. But by 2006, Taobao would overtake eBay China. As Taobao grew explosively, eBay China’s market share would fall dramatically and it would bow out, transferring its operations to a joint venture partner. 2 Although eBay would nominally continue to operate in China, it was no longer a concern in Ma’s plans for Taobao―which by 2008 held over 80 percent of the market. How had this upstart company overwhelmed the world’s most formidable player in the online C2C space? THE BIRTH OF CHINA’S ONLINE C2C MARKET 3 Online auctions got off to a slower start in China than in some of the world’s more developed economies. China had a low Internet penetration rate, lacked norms and laws to support online exchange, and had not yet developed the technological and financial infrastructures needed to…
Shopping centers are purpose built complexes which can contain retail shops, restaurant and other eateries, service such banks and leisure facilities such as cinemas and bowling alleys.…
Why did eBay succeed in the US but fail in China? What could eBay have done to avoid defeat?…
As we know, eBay’s China expansion strategy can be considered as failure, despite the fact that eBay entered this potentially rewarding market with caution. This cautious strategy was very unusual for eBay, because they used full-forced, head-on,…
Jack found that a critical difficulty is that many SMEs have no way to evaluate the trustworthiness of the trading partners. Taobao developed a number of mechanisms to help create trust between sellers and buyers, including the two-way feedback, string regulations on registration and TrustPass verification for premium subscribers.…
Actually, as the high complexity of consumers today, marketers seldom use only one segmentation method to segments the whole market. Thus, we found that Tao Bao and eBay are tending to use multiple aspects, but it also has the most influential segmentation. First, in geographic segmentation, e-Bay segments the market based on the nation. For example, the apps will suggest the most popular products in different nations due to distinct preferences such as the clothes, shoes and accessories in the front page for American. The idea behind this is that people living in the same area share similar needs and wants. But, for Tao Bao, it focused on China most and segments the market base on the regions in mainland China. Second, in demographic segmentation, both Tao Bao and eBay would like to divide the market into groups on variable, such as gander, family life cycle and income. So that the people in the same group will have similar response for a marketing action. And according to the psychographic segmentation, Tao Bao and eBay segments the market based on social class and personality characteristics. For instance, the eBay application provides clothes with different brand names for middle or high class customers. And Tao Bao provides 12 categories of products for customers to choose, not matter they are fashion or casual. In behavioral segmentation, they try to divide buyers according to the different benefits they seek from the products. It’s called the perceived value. A teenager may consider the fashion of a dress whereas a woman may consider the durability of the dress. And in some special occasions, they will have some special promotions and labels for holidays or the changing garments of seasons because many customers will have similar needs and wants at that time.…
No distinct Segmentation, an online shop just has product technical guidance and selling orientation, they don’t have distinct segmentation at their targeting and wide market.…
This case deals with the competition of dominant position in China's online market between domestic player Taobao and global internet C2C service leader eBay.…
TAOBAO is an online shopping websites in China. Any product could be sold and bought in this website. For example, clothes, food, insurances and so on. All people can sell or buy through Taobao.…
Alibaba operates several online/mobile trading platforms for B2C type of online and mobile commerce business in China. The major ones being (1) Taobao Marketplace, China’s largest B2C online shopping destination (merchandises offered by individual sellers, similar to e-bay in United States); (2) Tmall, China’s largest B2C third-party platform for brands and retailors (similar to Amazon in US); and (3) Juhuasuan, China’s most popular group buying marketplace (similar to Groupon in US).…
Taobao is Alibaba Group’s biggest business. It is a consumer-to-consumer(C2C) marketplace suchlike eBay.com. Coming far from eBay, Taobao do not charge a commission from transactions. It some what, makes money through selling advertisement. (such as to Google). Merchants are able to make purchase and put their products above fit in priority, gaining toward visibility for their products, or reaching toward extra customers via search advertisement.…
The problem for eBay is how to factor the new Chinese business landscape, its conditions, culture and constraints so that it can penetrate into the large Chinese market. This is the challenge identified because Whitman, the company’s CEO, has announced that the goal for the company is to reach the $3 Billion sales level by 2005. In order to reach this new milestone, the company would need to look for key markets abroad and expand through them. And the biggest and most promising among the potential expansion points is China.…
As the China’s economy developing very fast, the demand market is growing dramaticly. The growth rate of sales online and in-store will grow at the same time. While the sales online tends to be more powerful at this stage, it will take enough market shares then be stable. The in-store sales still will not deminished because it holds many advantages that online shopping is hard to achieve. The relationship between online sales and in-store sales in China tends to be positive.…