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Category: E-Tailing

Retail News Asia is committed to providing both local and global retailers with the latest E-Commerce & Etail news throughout the Asian market. This on a daily base.

  • Alibaba overhauls e-commerce businesses, appoints new CFO

    Alibaba overhauls e-commerce businesses, appoints new CFO

    Alibaba said it would form two new units to house its main e-commerce businesses – international digital commerce and China digital commerce, in a bid to become more agile and accelerate growth.

    The international digital commerce unit will house Alibaba’s overseas consumer-facing and wholesale businesses and include AliExpress, Alibaba.com and Lazada. The unit will be headed by Jiang Fan, who had been president of the Taobao and Tmall marketplaces.

    Alibaba will house its domestic commerce businesses in the China digital commerce unit, which will be led by Trudy Dai, a founding member of Alibaba, it said.

    The company’s deputy chief financial officer, Toby Xu, will succeed Maggie Wu as its chief financial officer from April; his appointment was described as part of the company’s leadership succession plan.

    Xu joined Alibaba from PWC three years ago and was appointed deputy CFO in July 2019.

    Wu, who helped lead three Alibaba-related company public listings as CFO, will continue to serve as an executive director on Alibaba’s board.

    The e-commerce giant’s Hong Kong-listed shares slid 8 percent in early morning trade, tracking Friday declines made in the United States. US-listed shares of Chinese firms tumbled on concerns about stricter regulatory scrutiny at home in the wake of plans by Didi Global Inc to delist from the New York Stock Exchange.

    Last month, Alibaba slashed its forecast for annual revenue growth to its slowest pace since its 2014 stock market debut and saw sales at its banner event, online shopping festival Singles Day, grow at their slowest rate ever despite record sales.

  • Vietnam’s e-commerce traffic higher than Thailand, Malaysia

    Vietnam’s e-commerce traffic higher than Thailand, Malaysia

    E-commerce web traffic from Vietnam is double that of Thailand and triple that of Malaysia in Q3, showing high demand for online shopping amid the pandemic, a report has found.

    Digital consumption has become a new habit as the number of online vendors increases, with Vietnam becoming “a star” on the Southeast Asian e-commerce market, according to the Q3 market report by iPrice Group.

    Vietnam is set to exceed Thailand by 2025 to become the second-biggest internet economy in Southeast Asia with a scale of $57 billion, behind Indonesia at $146 billion, according to the e-Conomy Southeast Asia 2021 report by Google, Temasek, and Bain & Co.

    However, foreign companies are still dominating Vietnam’s e-commerce market in terms of web traffic.

    Singapore’s Shopee accounted for 57 percent of traffic in the third quarter, followed by another Singaporean company Lazada at 16 percent.

    Vietnamese startup Tiki ranked third with 13 percent of traffic.

    The report also pointed out Vietnamese consumers interact on the social media pages of e-commerce platforms more frequently than Thai but less than Malaysians, showing the importance of Facebook in promoting brands in Vietnam.

  • Four reasons global retail brands like ZALORA look to affiliates and partnerships for growth

    Four reasons global retail brands like ZALORA look to affiliates and partnerships for growth

    Both consumers and retailers have had enough of ads. Digital advertising is becoming a less cost-effective mode of customer acquisition as already inflated costs per acquisition (CPA) continue to rise and performance sinks. Events such as recent privacy shifts at Apple, for example, caused the average cost of conversion for ecommerce marketers to surge 200 percent for tracked users and 155 percent for non-tracked users during a six-month period

    Because ads have become so intrusive and Asian consumers have so many alternative channels to turn to for information or to make buying decisions, retailers must look elsewhere to engage and acquire new customers. 

    To see where companies are finding success, you need only look at fast-growing brands like the leading sports retailer, Decathlon Singapore. The brand saw its affiliates and partnerships drive 50 percent of new customer acquisition in eight months, with a quarter-over-quarter (QoQ) revenue growth rate of 156 percent.

     In fact, many retailers in the region have successfully reoriented their growth strategies toward affiliate marketing and partnerships. In April, online fashion destination ZALORA partnered with H&M in a brand-to-brand (B2B) partnership that will bring ZALORA apparel to H&M’s 400 million consumers across channels in Southeast Asia.

    ZALORA has also established an open and inclusive influencer partnership model that has attracted more than 2,000 content creators to its program. The brand doesn’t require its partners to have a minimum number of followers or posts per month to join, and this year it adopted a new commission-based model that invites even more crowd participation. Recommendations that lead to sales earn the influencer up to 15 percent commission in cashback or up to 10 percent in cash. ZALORA’s new influencer program is powered by the partnership management platform, impact.com.

    Similarly, the fashion brand Love, Bonito saw 20 percent of total new orders coming from affiliate partnerships just a year after launching its program. The company works to drive growth with its diverse partners, ranging from content creators and influencers to fellow brands. 

    With full partnership life cycle technology now available for scalability, a broad array of partnership types to explore, and so many successful models to emulate, affiliate marketing and partnerships are a path every retailer in Asia can pursue right now to achieve sustainable, cost-effective customer acquisition. Here’s why.

    Four reasons to consider affiliate marketing and partnerships

    • Low risk, great rewards: As a pay-for-performance channel, affiliate marketing and partnerships keep risk to a minimum and have a track record of great returns. A 2019 Forrester report revealed that brands with mature affiliate and partnerships programs have seen overall partnerships revenue grow to 28 percent of total company revenue. They also experience revenue growth that is two times faster than that of their low-maturity competitors.
    • Customizable terms: In the early days of affiliate marketing, retailers paid fixed commission rates to every affiliate or publisher that brought customers to their websites. That one-size-fits-all approach left no room to reward high-performing partners, incentivize specific results, or promote select products. Retailers today, however, can customize commission structures in a wide variety of ways to meet their business goals and attract the right kinds of partners. In fact, with the advanced partnerships management technology now available, crafting customized terms and contracts is easy.
    • Granular measurement: The performance and success of an affiliate marketing and partnerships program can also be aligned with a retailer’s business goals. With the right technology, retailers can see full-funnel attribution across both paid channels and their affiliate program to track key performance metrics such as average order value (AOV) and new customer rate. This attribution also helps retailers optimize the value of each partner at every step of the customer journey. 
    • Customer-focused: In contrast to digital advertising, affiliate partnerships are firmly rooted in consumer trust and authenticity. Consumers are free to seek out the voices and resources they trust for referrals and advice on buying, which makes credibility a lynchpin of the affiliate partnerships ecosystem. Brands and affiliates alike have a stake in delivering value to audiences and maintaining trusted status, which means everyone is aligned toward common goals and priorities. 

    Opportunities are growing in the partnership economy

    Getting started in affiliate marketing and performance-based partnerships has never been easier for retailers. From influencers to podcasters and from content and media publishers to brand-to-brand relationships, today there’s a partnership type to fit every business plan. In fact, the most diverse programs are often the strongest. 

    For tips on getting started in affiliate marketing, check out this Ultimate guide to affiliate marketing or reach out to impact.com’s dedicated Southeast Asia team at [email protected].

    By Antoine Gross, General Manager, Southeast Asia, impact.com  Antoine Gross is General Manager for Southeast Asia at impact.com.

     

  • Visa’s Amazon spat shows power is shifting to retailers in fee battle

    Visa’s Amazon spat shows power is shifting to retailers in fee battle

    Amazon’s latest spat with Visa shows big retailers, armed with a growing array of payment options, are gaining the upper hand in their power struggle with card providers, but it’s not a crisis for the payment company.

    Amazon said last week that it would stop accepting Visa credit cards issued in the United Kingdom from Jan 19, 2022, saying that despite technology advancements the fees on such transactions remained high or in some cases were rising.

    While Amazon may yet back down on the UK front, where the company accounts for less than 1 percent of Visa’s credit card volume, according to an estimate by Piper Sandler analysts, the dispute is a bad sign for the card industry. Some analysts said it could presage a fight in the much bigger US market.

    “Amazon is treating this dispute with Visa as an experiment,” said Piper Sandler analyst Christopher Donat. “Our biggest concern is that Amazon seeks concessions from Visa in other geographies.”

    Visa Chief Financial Officer Vasant Prabhu told Reuters in an interview on Friday that he expected a resolution. “We’ve resolved these things in the past and I believe we’ll resolve them in the future,” he said. Amazon declined to comment.

    Credit cards dominated a third of North American e-commerce spending in 2020, according to payments giant WorldPay, but mobile payment options like Venmo and ‘buy now, pay later’ (BNPL) financing plans are chipping away at their market share.

    While alternative payments have been growing for years, the pandemic accelerated a downward trend in credit card applications boosting the popularity of BNPL financing, especially among younger consumers.

    Credit cards’ share of North American e-commerce spending declined 7 percent last year, according to WorldPay, while BNPL’s share increased 78 percent, making it the fastest-growing form of payment.

    In August, Amazon partnered with BNPL provider Affirm to offer an installment financing option on US Amazon purchases.

    “Credit cards are still dominant players for non-cash transactions, but they need to be aware of the growing competition,” Chris Dinga, a payments analyst at GlobalData, wrote on Friday.

    “BNPL is gradually being adopted by retailers as they see higher conversion and growth opportunity by providing it to their customers,” Dinga wrote, adding high credit card fees could accelerate BNPL adoption by retailers.

    Some analysts said past disputes suggested Visa may have to blink before Amazon, such as when U.S. restaurant owners stopped taking Amex cards in the 1990s, leading Amex to reduce its fees.

    “Visa may need to follow American Express’s example,” Evercore analysts said in a research note.

    Still, Visa has survived such fights and few other merchants have Amazon’s heft, said Prabhu.

    “Even a very large retailer like Amazon represents a relatively small portion of our payment volume,” he said.

    And Visa is not wedded to credit cards as the primary transaction source, he added.

    “If a merchant wants to offer credit in a different way, we’re agnostic. We will do both. The buy now, pay later business has been a positive for us.”

    Visa has been partnering with BNPL providers, including Sweden’s Klarna.

    Retailers also benefit from credit card issuers offering their customers cash rebates and rewards programs to encourage them to spend more than they otherwise would.

    Prabhu said he expected credit card spending to pick up now that borders are opening and affluent customers are spending more on travel, entertainment and eating out.

    And Amazon also needs a partner for its own co-branded credit card. The company is considering replacing Visa on US co-branded credit cards with either Mastercard or American Express, suggesting its UK fee dispute could be a negotiating tactic, said analysts.

    “It’s not necessarily a good idea for merchants to restrict consumer choice,” said Prabhu. “Amazon will have to think about that, too.”

  • Alibaba expects slowest annual growth in eight years

    Alibaba expects slowest annual growth in eight years

    China’s Alibaba forecast annual revenue to grow at its slowest pace since its 2014 stock market debut as second-quarter results missed expectations due to slowing consumption, increasing competition, and a regulatory crackdown.

    U.S.-listed shares of Alibaba Group Holding Ltd, which expects the fiscal year 2022 revenue to grow by 20% to 23%, tumbled 10.3% in pre-market trading on Thursday.

    Beijing has come down hard on China’s big tech, citing antimonopoly and security reasons, hitting bottom lines and stock prices at companies including Alibaba and gaming giant Tencent Holdings Ltd. Tencent last week posted its slowest revenue growth since it went public in 2004.

    This, along with supply disruptions, has contributed to China’s economy suffering its slowest growth in a year in the third quarter.

    On an earnings call on Thursday, Alibaba CEO Daniel Zhang said increasing competition and slowing consumption in China were the primary causes for slowing growth, adding that it was hard to say which one hurt earnings more.

    For the quarter ended Sept. 30, the e-commerce juggernaut’s revenue growth rose 29% to 200.69 billion yuan ($31.44 billion), its slowest rate of growth in six quarters. Analysts on average had an expected revenue of 204.93 billion yuan, according to Refinitiv data.

    Revenue at Alibaba’s China commerce retail business, its main e-commerce unit, rose 33%. On an adjusted basis, Alibaba earned 11.20 yuan per share, below the average estimate of 12.36 yuan.

    Separately, Alibaba’s chief rival JD.com Inc, said it expects weak demand will weigh on the company’s overall performance in the year’s second half.

    Alibaba, which last week recorded its slowest sales growth during its annual Singles’ Day online shopping fest, said it will continue to invest heavily in areas such as Taobao Deals, an e-commerce service targeting lower-tier cities, and offline retail initiatives.

    Alibaba’s fintech affiliate Ant Group recorded a quarterly profit of about 19.7 billion yuan for the quarter ended June. Alibaba records its profit from Ant one quarter in arrears.

    Authorities forced the suspension of Ant’s $37 billion initial public offering last November and imposed a record $2.8 billion fine on Alibaba for anti-competitive business practices in April.

    Alibaba logged its first operating loss as a public company the same quarter it faced the penalty and has lost about a third of its market value so far this year.

  • E-commerce sites report jump in 11/11 sales

    E-commerce sites report jump in 11/11 sales

    E-commerce platforms reported a surge in sales on Singles’ Day on Nov. 11, an annual shopping event, with the most popular items being masks and healthcare products. Tiki said revenues were up nine times from last year, and the number of buyers was double that on normal days.

    Face masks, products for babies and mothers, and fast-moving consumer goods were the top sellers, it said.

    It also sold some 10,000 mobile phones, including 500 iPhones, 2,000 electric motorbikes and bicycles, and 6,000 cans and bottles of beer.

    Shopee sold 1.8 million decorative items, including some 100,000 decals and stickers, 1.6 million healthcare products, one million earphones, and 150,000 mobile phone covers.

    Lazada said revenues doubled and the number of customers was up by half. Healthcare and beauty products were its best-sellers, and electronics sales almost doubled, with laptop and desktop sales nearly tripling.

    Sendo said revenues were 40 percent higher than during other promotions such as Sept. 9 and Oct. 10, with fashion, household, and beauty items seeing sales double.

    According to a report called ‘e-Conomy SEA 2021’ released this week by Google, Temasek and Bain & Co., Vietnam’s e-commerce market will increase to $13 billion this year, up 53 percent from last year, and triple by 2025.

  • Amazon and the pros of getting personal

    Amazon and the pros of getting personal

    if you want people to use your application and give you their money and information, you must provide them with speed, efficiency or time savings in exchange. The average user looks at his phone 150 times a day (and rising), but each of those interactions is growing shorter. Users perceive value when their technology interfaces enable them to get done what THEY need to do more efficiently.  Lingering on a screen, scrolling through options…these are not things most users like. But every user is different. You can model behavior, and you can create 80/20 rules to hit a majority of users, but there is nothing like an application or an experience that just gets you. For users, feeling known is no longer a nice-to-have feature: it is an expectation.

    My own experience with personalization pre-dates the modern mobile phone era.  I was wrapping up my college career just as the first Internet boom was winding down.  At the time, Amazon was not nearly the behemoth it is today, and clouds were still puffy collections of moisture in the sky. Personalization of content on the still nascent internet was limited, to put it nicely. In order to graduate college, I had to complete my senior project. I drew inspiration from my own career history as a restaurant manager, and decided to create a Restaurant Food Delivery service website, which allowed a user to order food from any number of area restaurants, and arrange for that delivery through a third party. The project was narrowly focused on the creation of the website, and the rest of the necessary workflow was completely fake, so no I did not create an early, cave-man version of DoorDash. But, the user experience screamed the need for some kind of personalization, some way to make reasonable recommendations to users about meals they may enjoy.

    Enter Amazon.com.  

    As a student and technologist, the access to the knowledge provided to me by Amazon, through purchasing and delivery of books, was astounding. And as I bought books, Amazon would recommend other books, and these recommendations would get better and better, and this became the inspiration for the recommendation engine I would implement in my senior project.  In my attempts to reverse engineer the algorithm that Amazon uses, I implemented a basic engine that looked across the items a person ordered and matched other food orders with similar items, and then selected an item not on the current user’s list as a recommendation. It was basic, but it did the trick…I was allowed to graduate.

    Years later, well into my career, I learned this method of recommendation is called Collaborative Filtering, and was in fact the approach used by the nascent Amazon.com shopping system to make recommendations. As an early pioneer in the online shopping space, Amazon had the data to sign up the game in personalized recommendations. The eCommerce space has been using recommendation engines for many years now. Shopping platforms like Magento have plugins and extensions to enable recommendations, and while these tools are great and perform a similar function to Amazon.com’s engine, they are domain and platform-specific.

    “The Cloud” expands the pure volume of data available for making recommendations. This expansion, with no other technology changes, brings an opportunity for better recommendations. But that is not where the Cloud stops. By expanding access to high-performance computation, high-speed data storage, and high volumes of data, The Cloud has enabled an explosion in machine learning and artificial intelligence. And this has brought the concept of personalization to a whole new level.

    With Personalize, Amazon takes advantage of all that has gone into building the largest Cloud on the planet, and all that was learned through Amazon.com and what started as a Collaborative Filtering approach, and expanded, matured, and brought it to the technology community as a general-purpose platform for personalization.

    Amazon Personalize sets out to empower us, as technologists, to meet the expectation with which our CCO has challenged us. It brings an easy-to-use, highly scalable platform to power recommendations, and more, across nearly any domain. By allowing you to define a schema + additional metadata, and apply an HRNN based Machine Learning algorithm to that data, Personalize is able to surface recommendations about clothing, news articles, doctors, and even food. The model that is used for training is your data, and can be updated as frequently as you choose. This allows you to create a feedback loop to regularly enhance your recommendations. It also provides for preferential ranking of content. Enabling you to surface the most likely needs for your users when performing searches.

    Typically, the barrier to entry for this kind of machine learning technology has always been the complexity of establishing the machine learning data pipeline and processing model, which would typically include these activities:

    • Build a machine learning engine
    • Train one or more models
    • Test those models and then retrain as needed
    • Design and implement a method of generating inferences from those models
    • Create the data pipeline to serve the model
    • Deploy the model with an integrated data pipeline
    • Etc…

    By building on their other technologies, AWS reduces this barrier significantly by providing the machine learning engine that trains the model from your curated data and an easily accessible RESTful API for generating inferences across this trained model by user or by item. This also allows for sorting a list of items in a way that is most useful to the individual. It does this all on top of the core AWS services, like SageMaker and IaaS capabilities, which allows this engine to run at scale servicing all of your consumer personalization needs.

    Amazon Personalize does not solve everything, however. It does not eliminate the need to know and understand your data. It does not replace your data science or development teams. Extracting, transforming, and loading data into Personalize is still something that needs to be done. Testing the validity of the trained model, and the accuracy of the recommendations is an absolutely necessary step you need to take, and Personalize does not change that.

    In addition to the concept of “fair exchange of value,”  another thing our CCO likes to talk about is the anxiety and fear users have when interacting with technology, and the importance of frictionless experiences to reduce that anxiety and eliminate that fear. The barrier to entry for many in the machine learning space is also anxiety and fear. It is anxiety about whether they can really build a machine learning pipeline, fear about both how long it will take and whether they will be finished just in time to miss this train of AI and machine learning-driven experiences. Amazon Personalize’s biggest accomplishment for technologists like us is the reduction of that anxiety and the elimination of that fear. It doesn’t solve all problems related to personalization, but it leaves space for data manipulation and reduces the problem space to something consumable and solvable.

    In a world where a user’s attention span is approximately 12 seconds, Personalize allows us to meet them where they want to be: in a precisely aligned window of time, with an interaction that is a fair exchange of value.

  • Fashion platform Miinto expands into China

    Fashion platform Miinto expands into China

    As one of the largest and most popular fashion e-commerce platforms in Europe, MIINTO officially announced its launch in China on November 1, 2021.

    MIINTO was established in Denmark in 2009, and the online platform was officially launched in 2010. As one of Europe’s largest fashion e-commerce platforms, it has already entered 13 European countries, including Norway, Sweden, the Netherlands, Poland, Belgium, Switzerland, Germany, France, the United Kingdom, Italy, and Spain.

    MIINTO has a strong influence in the European market and continues to develop on the road of internationalization. The decision to enter the Chinese market this time also shows their determination to expand into the international market. Although China’s e-commerce industry is developing rapidly, the market for luxury brands and overseas fashion brands is still a blue ocean. From a global perspective, it has become a major trend for luxury brands and various fashion brands to accelerate their embrace of e-commerce platforms, but the scale of overseas fashion brands on domestic e-commerce platforms cannot be achieved overnight. The reasons behind this are complicated. For example, these brands have not yet considered the Chinese market, such as unable to find suitable cooperation channels and so on. Nowadays, many domestic consumers buy overseas fashion brands or luxury goods online, most of them choose overseas shopping or purchasing agents. The authenticity of the goods and the appropriate price are difficult to guarantee.

    As one of the most promising e-commerce platforms in Europe, MIINTO has redefined the traditional fashion e-commerce model and has become the first choice of many European consumers for online shopping. Based on high-quality services and strong fashion brand and boutique resources accumulated over the years, I believe MIINTO can give Chinese consumers a wonderful shopping experience and open a new chapter in the Chinese market.

  • Vietnam Internet economy to expand 31 pct

    Vietnam Internet economy to expand 31 pct

    Vietnam’s Internet economy is expected to grow by 31 percent this year to $21 billion this year despite little or no contribution from the online travel market.

    It is set to reach $57 billion by 2025 after growing at 29 percent a year, according to the e-Conomy Southeast Asia 2021 report by Google, Temasek and Bain & Co.

    This means Vietnam will draw level with Malaysia this year and exceed it by 2025.

    It is now only below Indonesia ($70 billion) and Thailand ($30 billion) among the six major economies in Southeast Asia.

    It added eight million new digital consumers between the start of the pandemic and the first half of this year, 55 percent of them from non-metro areas.

    “Stickiness of adoption remains high as digital consumption has become a way of life,” the report said, pointing out that 97 percent of the new consumers are still online.

    The value of the online travel sector is set to plunge by 45 percent this year, but other sectors are headed for double-digit growth, led by e-commerce at 53 percent.

    Digital merchants are becoming tech-savvy and likely to become even more so in the future.

    Thirty percent of them said they would not have survived the pandemic if not for digital platforms.

    Digital financial services are also becoming critical enablers, with 99 percent of digital merchants now accepting digital payments.

    The country saw deal values in the Internet economy quadruple year-on-year in the first half of the year to nearly $1.37 billion from 89 deals.

    “Vietnam remains a very attractive innovation hub with more incubators, accelerators, and innovation labs than most other markets in the region,” the report said.

    The latest deal saw a group of investors led by insurance company AIA invest $258 million in e-commerce company Tiki.

  • Rewards Platform ShopBack Acquires BNPL Startup Hoolah

    Rewards Platform ShopBack Acquires BNPL Startup Hoolah

    The acquisition is part of the Singapore-based platform’s efforts to drive $3.5 billion in sales this year.

    Temasek-backed cashback platform ShopBack has acquired buy now pay later (BNPL) brand Hoolah for an undisclosed sum in cash and stock, according to an announcement on Tuesday.

    The acquisition extends ShopBack’s product offering to include transactions with payment options like BNPL and more. Meanwhile, Hoolah will be able to accelerate its growth through ShopBack, which allows the BNPL player to extend its offerings to over 8,000 merchants and 30 million shoppers across several APAC markets, the announcement said.

    ShopBack, which was valued at $539.4 million in its latest funding round, said the acquisition will transform the shopping experience for shoppers, and provide a one-stop solution for demand generation and user engagement for merchants across the APAC region.

    ShopBack is also expanding its team across the APAC region. According to its LinkedIn profile, it is looking for ahead of marketing in Singapore, who will be responsible for demand growth and user development funnels on both existing and new business initiatives within ShopBack Singapore.

    Hoolah’s however, has experienced a rocky past few months, with layoffs reported at the company, as well as the departure of co-founder and CEO Stuart Thornton, who has since been replaced by fellow co-founder Henry Chan.

    The BNPL space is expanding rapidly and companies are vying for market share, with a number of partnerships established in recent months to expand their reach. Recent deals include Standard Chartered’s partnership with BNPL platform Atome to deliver a wide range of financial services to consumers and merchants across key markets in Asia, as well as its partnership with Kredivo – one of Indonesia’s largest and fastest-growing digital credit platforms.

    U.S. fintech giant also acquired Japan BNPL payments platform Paidy in September for ¥300 billion (about $2.7 billion), while Square, run by Twitter CEO Jack Dorsey bought Australian Afterpay for $29 billion in August.

  • Alibaba promises sustainability focus in this year’s 11.11 consumer fest

    Alibaba promises sustainability focus in this year’s 11.11 consumer fest

    “Over the last 12 years, 11.11 has showcased the tremendous consumption power of Chinese consumers and pushed boundaries for the global retail sector,” said Chris Tung, Chief Marketing Officer of Alibaba Group. “This year’s Festival marks a new chapter for 11.11. We believe we must leverage the power of 11.11 to encourage sustainable development and promote inclusiveness to consumers, merchants and partners across our ecosystem.”

    This year marks the largest Festival to date, with a record 290,000 brands participating. Tmall is offering more than 14 million deals to over 900 million consumers in China. The Festival will once again have two sales windows – the first will be from November 1 to 3, and the second will be on November 11, on the day of the main event.

    Livestreaming will be a key consumer engagement mechanism for brands and merchants to build awareness and drive sales. Starting on October 20 throughout the Festival, Taobao Live will feature 700 leading KOLs, celebrities and brand representatives in livestream sessions. In addition, Taobao will roll out a new feature for users to share their “shopping cart” items with friends and family, creating a more social shopping experience.

    “Green” Lifestyle, Eco-Friendly Consumption Top Priority This 11.11

    Tmall is taking action to promote “green” lifestyles this 11.11 by featuring a dedicated vertical to showcase energy-efficient and low-impact products, as well as issuing RMB100 million worth of “green” vouchers to incentivize shopping decisions that contribute to an environmentally friendly lifestyle.

    Alibaba’s logistics arm Cainiao Network will introduce package recycling across 10,000 Cainiao Post Stations in 20 cities to reduce the Festival’s carbon footprint beginning on November 1, the first day of the first 11.11 sales period.

    With increased use of green technology, Alibaba expects to further reduce the carbon emission per order during this year’s 11.11.

    Doing Good While Shopping

    Supporting vulnerable populations is also a key theme this year. Ahead of this year’s 11.11, the Taobao app introduced an option for “senior mode,” a new feature designed to make the user interface more accessible for senior citizens. It offers voice-assisted technology, simplified navigation, larger font size and icons. The app homepage also offers games for elderly users to unlock special discounts for groceries, making the experience more engaging for the silver generation.

    Consumers are encouraged to share their “Goods for Good” purchases with their friends and family, and Alibaba will make a RMB1 donation for every successful social media share.

    Launched in 2006, Alibaba’s “Goods for Good” program enables merchants to donate a portion of their sales to charitable organizations of their choice, while consumers can support their favorite charitable causes through their purchases. The donations from this year’s Festival will provide support to three major beneficiary groups: elderly citizens living in solitude, “left-behind children” in remote areas and low-income workers.

  • Alibaba makes Taobao app more user-friendly for elderly shoppers

    Alibaba makes Taobao app more user-friendly for elderly shoppers

    Alibaba Group’s online marketplace Taobao this week rolled out a new version of the shopping app that’s more accessible for senior users.

    Piloted ahead of China’s 11.11 Global Shopping Festival, Taobao’s “senior mode” features larger text and icons, simplified navigation and voice-assisted technology, which allows senior citizens to search for products using voice commands.

    The homepage highlights games that have been popular among elderly users, including the Baba Farm program where users tend virtual crops to unlock discounts for agricultural produce.

    “In the future, we will explore new ways to make online shopping easier for seniors, such as functions that allow their children to help them browse and select products,” said Shao Xi, the project manager overseeing the new service.

    China has the world’s largest elderly population. Per China’s latest census published in May this year, the country had more than 264 million people aged 60 or over in 2020 – making up 18.7% of the population.

    Alibaba’s digital tools became an integral part of everyday life for seniors during the coronavirus pandemic. Orders made by users over the age of 51 increased by 125% on delivery platform Ele. me last year, while Alipay’s elder-oriented “care version” recorded a 6.6-times jump in visits year-on-year in the first half of 2020.

    Covid-19 concerns may now be fading in China, but elderly users remain a priority across the Alibaba ecosystem. Last month, Ele.me introduced an elder-friendly mode within its app featuring a simple homepage with large fonts and buttons to make ordering food and grocery easy.

    This isn’t the first time that Alibaba has enhanced its platforms and services for the silver market, which was estimated to be worth RMB3.79 trillion (US$588 billion) in 2020 by the China National Committee on Ageing.

    In 2018, Alibaba launched the “Taobao for Elders” channel to make account registration and app navigation more accessible to seniors. It includes a peer-to-peer chat function allowing family members and friends to easily share products and consult each other, as well as a “pay-for-me” option to pay for another’s purchases.

    Within the Taobao app, senior users can find how-to guides and training programs for everything from online shopping and payments to ride-hailing and booking online doctor’s appointments, as well as a dedicated customer service hotline.

    Improved accessibility features benefit a range of people. In 2018, Taobao debuted an advanced artificial intelligence that reads text written on images, improving the shopping experience for blind and partially sighted users. The shopping platform estimates that roughly 300,000 visually impaired shoppers use the AI tool to browse 2 million products each day

  • Carousell snaps up sneaker marketplace Ox Street

    Carousell snaps up sneaker marketplace Ox Street

    Online marketplace Carousell has acquired Ox Street, a Singapore-based marketplace for authenticated sneakers and streetwear, the company announced on Monday. It did not disclose the deal value.

    Founded in 2019, Ox Street is focused on making the second-hand sneaker purchase experience more seamless for Southeast Asian youth by inspecting and authenticating the sneakers before they reach buyers.

    Post-acquisition, Ox Street will continue to operate as its own brand, retaining its name, platform, and team.

    “We initially started a conversation with Carousell on partnering up to provide authentication as a service for sneakers, but as discussions progressed, we found so much common ground in how we see the future, that we decided it would be much more powerful for Ox Street to fully join the Carousell group,” said Gijs Verheijke, founder and chief executive of Ox Street.

    “Our focus markets align nearly one to one, and in these markets, Carousell was actually the first, and remains the largest marketplace for sneakers and streetwear.”

    Data portal VentureCap Insights shows that Verheijke owns 90 percent of the company, with the remainder held by an entity, Aito Ventures. The company recorded US$18,975 in revenue in 2019, with a US$206,931 loss.

    Carousell chief executive Quek Siu Rui said that he sees “immense opportunity” in Ox Street’s authentication capabilities. He is optimistic about the “brand love they have created among their dedicated community of sneakerheads and fashion enthusiasts, especially among Gen Z”.

    The deal comes weeks after Carousell raised US$100 million in a round led by South Korean private equity firm STIC, valuing the company at US$1.1 billion. It is said to be considering a public listing in the US through a merger with a special-purpose acquisition company. Previous regulatory filings indicate that Carousell aims to provide its investors with an exit by 2024, at a valuation of at least US$1.13 billion.

  • Imports dominate popular categories on e-commerce platforms

    Imports dominate popular categories on e-commerce platforms

    Only 17 percent of the most popular goods on e-commerce platforms since last year have been Vietnamese, a market research firm said.

    Malaysian market research firm iPrice Group said in a report that 83 percent of the 1,200 most sought-after items were imported.

    The rates for Vietnamese products ranged between 25 percent for Sendo and 13 percent for Shopee Vietnam.

    The overall rate dropped to 14 percent in the first half of this year.

    Sendo and Tiki are Vietnamese-owned businesses.

    “Vietnamese enterprises have not paid due attention to e-commerce yet,” Sendo chairman Nguyen Dac Viet Dung said.

    “After two years of working with the Ministry of Industry and Trade to bring Vietnamese goods to e-commerce platforms, we have attracted many traditional retailers”.

    Vietnamese goods dominated the groceries category, with demand surging because of Covid-19 lockdowns.

    Agricultural specialties are becoming increasingly on the two local platforms.

    Vietnam’s e-commerce market has seen an average annual growth rate of 25-30 percent in the last five years, according to Vietnam E-commerce Association (VECOM).

    Should the growth rate be maintained, Vietnam would rank third in e-commerce market size in Southeast Asia by 2025, behind Indonesia and Thailand.

  • Alibaba apps start offering WeChat Pay option after government order

    Alibaba apps start offering WeChat Pay option after government order

    China’s Alibaba Group Holding Ltd has begun offering payment services from Tencent Holdings Ltd’s WeChat on a number of its apps, after the government ordered major tech firms to stop blocking each other’s services and links.

    Local tech blog 36Kr reported on Tuesday that users of Alibaba’s food delivery app Ele.me, luxury goods app Kaola and e-book app Shuqi can now purchase goods via WeChat Pay, one of China’s most popular online payment options.

    Alibaba’s used-goods marketplace app Xianyu and supermarket app Freshippo have also applied for WeChat Pay integration, the tech blog said.

    Alibaba confirmed the contents of the report to Reuters. Previously, the main way users could make payments on those apps was via Alipay, from Alibaba’s financial affiliate Ant Group.

    Earlier this month, the Ministry of Industry and Information Technology said it had asked internet companies to end a long-standing practice of blocking each other’s links and services on their sites. Such practices prevented app users from seamlessly jumping to services between rival companies.

    Days later, Tencent’s WeChat messaging app started allowing users to access links to rival platforms. Previously, it had not allowed users to click on links sent via chat to, for instance, product listings from Alibaba’s Taobao marketplace.

    The changes come as authorities continue to tighten regulation in the internet sector.

    In April, antitrust regulators fined Alibaba a record $2.75 billion for anti-competitive behaviour.