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Alibaba's Taobao shopping app launches AI-powered English version in Singapore, jumps to first place in Apple's App Store
BABABABA(BABA) CNBC·2024-09-13 02:55

Core View - Alibaba's Taobao app launched an English version in Singapore, leveraging AI translation, which propelled it to the top of the Apple App Store rankings in Singapore [1][2] - The move reflects Alibaba's strategy to expand its overseas e-commerce business and cater to non-Chinese users, particularly in Southeast Asia [2][3][4] - The English version aims to enhance accessibility for non-Chinese users, addressing previous challenges with manual translations [2] - Singapore serves as a cultural testbed for Chinese companies aiming to expand globally, with a significant Chinese diaspora aiding this effort [4][5] Market Performance - Taobao rose to first place in Apple's Singapore App Store across all categories on September 11, 2023, after the English version was announced [1] - Prior to the update, Taobao was consistently ranked in the top ten shopping apps for iPhone users in Singapore from mid-August 2023 [1] - Taobao's average monthly active users in Singapore reached 167,000 in Q3 2024 [7] Revenue and Business Strategy - Taobao and Tmall Group generated 26.55 billion yuan ($3.65 billion) in revenue for the quarter ending June 30, 2023, a 6% year-on-year increase [2] - Alibaba is ramping up its overseas e-commerce business through platforms like Alibaba.com and AliExpress [2] - The company is leveraging its domestic entrepreneurial and fast-innovation capabilities to create new positions overseas [5] User Engagement and Feedback - Singaporean Taobao users previously created video guides on TikTok, with some videos amassing over 10,000 views and one reaching 105,000 views [4] - A TikTok video demonstrating how to change the Taobao app display to English garnered 947,000 views in one day [7] - Despite imperfections in the English-language experience, such as incomplete currency conversion and literal translations, users have shown enthusiasm for the new features [6] Cultural and Demographic Context - Singapore's population of 5.92 million is nearly 75% of Chinese descent, while Malaysia's population is about 20% ethnically Chinese, providing a strong base for Chinese companies expanding globally [5] - Chinese companies benefit from the large ethnic Chinese diaspora outside mainland China, giving them an advantage in global expansion compared to South Korean and Japanese companies [4]