What happened:Alibaba’s e-commerce marketplace Taobao announced a set of new operating rules for its yet-to-launch social e-commerce platform named “Taoxiaopu.”
The platform is now being tested internally for market trend research and merchant feedback, and will be launched “soon.”
Positioned as a socialized marketplace for everyone, Taoxiaopu improves upon conventional retail models with its S2B2C (supply to business to customer model) in which a data-driven supply chain platform is closely linked to the businesses that serve customers, offering features such as real-time feedback and customization for small businesses, for example.
Suppliers include brands, distributors, factories, and offline merchants, while businesses are online storekeepers that could be content experts, sellers, and new consumers.
Why it’s important: The S2B2C concept was first proposed by Alibaba’s chief strategy officer Zeng Ming in 2017. The upcoming launch of Taoxiaopu underscores the Chinese tech giant’s ongoing efforts to keep up with new trends in China’s ever-changing e-commerce industry.
With core businesses in C2C (customer-to-customer) marketplace Taobao and B2C (business-to-customer) site Tmall, Alibaba is exploring new business models to meet the demands introduced by new retail.
Alibaba’s entry to this segment poses competition to existing players in the sector such as Yunji Weidian.
Original news is from Technode.