Taobao Flash Deals, a rapid-delivery service from Alibaba, has officially announced a massive RMB 50 billion investment in subsidies for both consumers and merchants, aiming to supercharge its growth and user engagement.
Early data from the launch day of this substantial subsidy program paints a vibrant picture of success. A remarkable 589 retail brands on Taobao Flash Deals saw their order volumes more than double compared to the platform’s full rollout on May 2nd. Notably, categories like prepared foods and alcoholic and dairy beverages experienced a surge of over 100% in transaction numbers.
The impact of the subsidies is clearly resonating across various sectors. Food, pharmaceuticals, 3C electronics, athletic apparel, and fresh flowers have all demonstrated significant order growth on Taobao Flash Deals. On the day the subsidies went live, leading brands reported impressive week-over-week gains: Nongfu Spring saw a 504% jump in orders, Lenovo experienced a 467% increase, Philips recorded a 350% uplift, and Zhao Yiming, a popular snack retailer, witnessed an astonishing 420% surge. Brands like Snow Beer, Hao Xiang Lai, and Ling Shi Hen Mang (Busy Snacks) saw their order volumes skyrocket by more than tenfold. Even in the fresh flower segment, new entrant Fresh Flower Envoy reported a 410% growth, while the time-honored brand Yunnan Baiyao saw orders climb by an impressive 303%.
As temperatures rise, Taobao Flash Deals is also witnessing an unprecedented demand for summer essentials. Search queries for heat-relief products have soared. Desktop fan searches are up 230%, air conditioner searches have climbed 220%, and summer apparel like dresses and men’s shorts have seen significant spikes of 230% and 200% respectively. The platform has become a hub for culinary enthusiasts too, with search interest for “chilled noodles for the elderly” jumping 500%. Even searches for “cicadas” (a summer sound) have seen a hefty 220% increase, highlighting the diverse consumer interests catered to by the service.
Combating the nuisance of mosquitos, “mosquito net” orders on Taobao Flash Deals have surged by 600%, with some consumers placing orders overnight. Traditional Chinese medicine items like Huoxiang Zhengqi Shui (a common remedy for heatstroke and digestive issues) are also proving popular, topping the list of most searched-for items in cities like Hefei, Nanjing, Wuxi, Qingdao, Wuhan, and Hangzhou.
With the summer vacation season in full swing, demand for dorm room cleanliness solutions like “dorm dust-proof film” has seen an 800% week-over-week increase in searches. Even academic essentials are seeing a boost, with “English notebooks” related to summer assignments climbing over 200% week-over-week in search volume.
Taobao Flash Deals has also partnered with swimming apparel merchants to launch its “Summer Cool Shopping” initiative. Chen Yuhang, head of Xiaomi’s Sports and Outdoor flagship store, commented, “Since joining Taobao Flash Deals, our instant retail orders for swimwear have grown by 400% week-over-week, and we anticipate even stronger growth in July. With the RMB 50 billion subsidy boost, we’re confident our sales will reach new heights this summer!”
Over the next 12 months, Taobao Flash Deals is committed to directly subsidizing consumers and merchants with RMB 50 billion. This will be achieved through the distribution of substantial red envelopes, free order coupons, and officially subsidized fixed-price products, all designed to offer consumers greater value, convenience, and an enhanced shopping experience, thereby stimulating consumption. Concurrently, the platform is implementing measures such as store subsidies, product subsidies, delivery subsidies, and commission reductions to foster merchant growth. By leveraging technological and business model innovation, Taobao Flash Deals aims to build a highly efficient and collaborative consumption ecosystem, driving significant traffic back to offline businesses and services. In its initial two months, Taobao Flash Deals, in conjunction with Ele.me, has already surpassed 60 million daily orders.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/3936.html
