Taobao Boosts Subsidies and Cuts Fees to Defend Market Lead

In a bid to fortify its position as China’s largest online marketplace, Taobao, the flagship e-commerce platform of Alibaba Group Holding, has announced significant measures to bolster support for its merchants and enhance content creation, according to local media reports.

Amid escalating competition from rivals such as PDD Holdings, Kuaishou Technology, and Douyin (the Chinese counterpart of TikTok), Alibaba is doubling down on its core operations to maintain its market dominance.

Taobao has revealed plans to inject a substantial 10 billion yuan (US$1.38 billion) into subsidizing content creation endeavors, including live streaming and short videos, throughout 2024. This initiative aims to enrich the platform’s ecosystem and engage users more effectively.

Furthermore, Taobao has unveiled fee reductions for merchants, a move designed to alleviate financial burdens and incentivize sellers to continue thriving on the platform. These strategic measures underscore Alibaba’s commitment to nurturing its merchant community and preserving its leadership position in China’s fiercely competitive e-commerce landscape.

Cheng Daofang, general manager of Taobao and Tmall Group’s e-commerce content unit, made these announcements during an event held on Thursday, signaling Alibaba’s proactive stance in adapting to evolving market dynamics and reinforcing its market stronghold.

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