Xin Lang Ke Ji·2025-08-29 14:12Core Viewpoint - Alibaba's CEO of the China e-commerce division, Jiang Fan, discussed the operational efficiency and user experience (UE) losses of Taobao Flash Purchase, emphasizing the importance of scale in improving efficiency and the company's plans to enhance operational metrics moving forward [1][2]. Group 1: Operational Efficiency - Jiang Fan stated that discussing efficiency without considering scale is meaningless, as Taobao Flash Purchase previously had only one-third of the order volume compared to competitors and market share below 20% in many regions [1]. - The company has achieved scale leadership in Taobao Flash Purchase and aims to quickly improve operational efficiency [1]. Group 2: User Structure Optimization - Short-term improvements in losses are expected from optimizing user structure, with significant marketing investments bringing in new users, which initially requires higher spending but leads to better retention and a higher proportion of returning customers [1]. - The company anticipates that as the proportion of returning customers increases, the platform's user experience will improve [1]. Group 3: Order Structure Optimization - The company plans to increase the proportion of high-value orders, including higher-priced meal orders and retail orders, which will enhance the average order value (AOV) and overall user experience [1][2]. - Jiang Fan indicated that the combination of logistics and subsidy efficiency improvements, along with user order structure optimization, could reduce UE losses by half while maintaining current consumer incentives [2]. Group 4: Long-term Outlook - In the long term, as order density increases, there remains significant room for optimizing logistics costs compared to levels before April [2]. - The company believes that through refined operations with offline merchants, there is substantial potential for improvement, and scale is the primary factor determining efficiency [2]. - Jiang Fan emphasized that the profitability of the food delivery segment will not be viewed in isolation, as the overall e-commerce revenue will allow for sustained price competitiveness while generating positive economic benefits for the platform [2].