Analysis on the Success of Taobao

Evolution of E-commerce is a continuous process and it evaluate more and more as time passes.

Today, more than ever before, technology and businesses go hand in hand as the population relies on having access to online shopping and online socializing. For consumers it is efficient and convenient to be able to do their shopping with the click of a button in the comfort of their houses. Therefore, improving e-commerce sales

Online commerce was introduced to consumers in the mid-1990’s, and in the years since, it has grown exponentially. It started out virtually nonexistent and has become a multi-billion dollar industry. Nearly every retail sector has entered online commerce; clothing, electronics, home, health and grooming items, even food and groceries are starting to gain traction online. Online commerce sites rival traditional brick and mortar stores such as Walmart and Target, as well as other big-box stores. As online retailers such as Amazon continue to expand, many brick and mortar stores have been making their way online, indicative of an increasing movement towards online commerce. With more than 80% of the online population having made an online

E-commerce is the capability of an organisation for having dynamic presence over Internet that allows the company for conducting their business electronically, in spirit of having an electronic shop. Thus, the products can be sold, paid and advertised electronically without the requirement to be processed with the help of human being. Because of massiveness of internet advertising and website can be un-covered to millions of people all around the globe with the information being able to be transformed almost promptly the site can always be kept updated with all latest products for matching with the demand of the consumers (Lee, 2005).

Today e- commerce has become an integral part of everyday life. Accessibility to e-commerce platforms is not a privilege but rather a necessity for most people, particularly in the urban areas. The first E-Commerce site in India was rediff.com. It was one of the most trafficked portals for both Indians and non-residents Indians. It provided a wealth of Indian related business news a reach engine, e-commerce and web solution services. Today the number of internet users in the world is close to 3 billion. Out of this, India has a total of 259.14 Million internet and broadband subscribers. (Source: Internet Usage Statistics - The Internet Big Picture - World Internet Users and Population Stats” available at http://www.internetworldstats.com/stats.htm ) This penetration of internet coupled with the increasing confidence of the internet users to purchase online, has led to an enormous growth in the e-commerce space, with an increasing number of customers registering on e-commerce websites and purchasing products through the use of mobile phones. It is not surprising, therefore, that India is in a prime position for the growth and development of the e- commerce sector. In particular, e-commerce presents one of the greatest opportunities in the retail sector. The mergers and acquisitions are also taking place in e-commerce

However, most consumers of China do not trust e-commercial retailers since e-commerce market still has a rather shorter history in China. Most researchers found out that prices of most Dotcoms

For the legality of online shopping websites, Chinese people usually shop on Taobao so that they don’t get cheated on the fake websites, and this makes Taobao a gigantic flatform and it’s like a monopoly. People shop on Taobao and the stores get franchised to put their products on Taobao.

Many market opportunities have helped the Alibaba Group thrive in the recent years. The location is the first advantage because China has over 560 million users of internet spending over 20 hours online a week. China is the biggest internet market globally (Bhasin, 2016). This is twice the size of internet users in United States of America. China is gradually shifting the traditional retailing in favor of latest trend of e-tailing. The good relationship with the government of China has enabled it to carry its operations so well in the market. For example, Alibaba Group was among the companies selected by the government of China to join the Internet banking. This is a huge opportunity especially where banks are state owned (Shiying & Avery, 2009). The cost cutting associated with the huge volume of sales. For example, Tmall and Taobao accounted for over 50 percent of all the Chinese delivered parcels. Tmall’s and Taobao’s combined transaction volume in 2012 was about one trillion yuan. This figure was more than eBay and Amazon transaction volumes combined.

This study will prove that e-commerce has grown because it adds value to people’s lives. It will show that e-commerce will not disappear but evolve into something even greater than what it is right now.

The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s

Many organizations industriously look for the opportunity to gain the competitive advantages in their industries. One of the opportunities that frequently used by the organization is the implementation of e-commerce. Thus, the e-commerce and the online sale transaction become popular in each industry. E-commerce provides many benefits, such as the saving of shopping time, the cost savings, convenience, and free from geographical constraints.

Founded just before the turn of the millennium in Hangzhou, China, Alibaba Group has to date become the largest online retail website worldwide in the planet, its total transactions surpassing the sum of both Amazon and eBay’s (Erickson, 2013). The report explains its business and operation model and market strategy, before moving to explore the reasons for Alibaba Group’s success such as its established market share in the large market of Mainland China and its efforts to promote the perception of the reliability and security of e-commerce. Comprising of its future plans in logistics improvement, expansion into developing nations, integration with social networks, venture into mobile

In the year of 2013, Asos sees a great revenue growth and profits all over the world. Asos continued its global expansion and in August of 2014, Asos received 61% of the whole sale from outside UK (Asos plc, 2014). According to the report released in 16th Sep 2014, the sales of Asos grew to￡975.5m in the end of August this year. Addition to that, the CEO Nick Robertson claimed that Asos will make even larger investments in the international pricing, technology and supply chain in order to gain more profits in the next financial year (Mintel, 2014). In the four driving forces of e-commerce, the customers’ love comes first.

Alibaba Group Company Limited in June 28, 1999 was incorporated in the Cayman Islands. Alibaba as a tripartite platform operators, not directly involved in sales, not to compete with the business, and no inventory. Alibaba provides basic technical infrastructure and marketing reach to help businesses take advantage of the power of the Internet to establish online business in the middle of consumers and businesses, e-commerce. Alibaba is China development of online market (including consumer protection plan, market rules, businesses eligibility criteria and rating system for buyers and sellers) leader

Alibaba’s dominant business model is an exchange. Piccoli, in his textbook, defines exchanges as “Exchanges are organizations that create a marketplace for buyers and sellers to come together and transact. Thus, an exchange does not take control of inventory or worry about fulfillment. Rather the exchange provides a “market making” service and is compensated with fees, commission on sales, or consulting fees on more complex business-to-business transactions. The prototypical example of an exchange is eBay. Others include Alibaba.com and Ariba—both mainly targeting the business-to-business domain.” (Piccoli, pg 170)