Hu Xiu·2025-09-23 13:13Core Insights - Alibaba's Taobao is accelerating its international expansion, particularly targeting domestic merchants with no prior overseas experience, through a "one-click overseas" model [2][39] - The company has seen a significant increase in new users, with a year-on-year growth rate exceeding 200% since April [2][7] - Key challenges include breaking into non-Chinese user markets and ensuring reliable fulfillment services for a vast array of products [3][6] Business Model - Taobao's overseas strategy is not a full-service model; merchants retain pricing, operational control, and user assets [39] - The platform charges merchants a commission of 4% to 10%, which covers logistics, marketing, payment processing, and return guarantees [46][49] - The model aims to minimize upfront costs and risks for merchants, allowing them to use existing inventory without needing to stock overseas [42][49] Growth Strategy - The "Global Growth Plan" was initiated after recognizing a critical turning point in Taobao's overseas capabilities, particularly in logistics and user experience [5][6] - The focus is on the apparel sector initially, with plans to expand to other categories like electronics and home goods before the upcoming Double Eleven shopping festival [11][12] - Over 1 million merchants have signed up for the overseas program within approximately 10 months [12][15] Competitive Landscape - Taobao's competitive edge lies in its existing merchant ecosystem and the ability to offer a diverse range of products while ensuring fulfillment certainty [16][17] - The platform's logistics network is open and collaborates with various service providers to maintain service standards [21][23] - Taobao's primary market focus is on regions with significant Chinese communities, differentiating it from competitors like AliExpress [36][38] Organizational Synergy - The integration of different departments within Alibaba has led to a more cohesive approach to supporting merchants in both domestic and international markets [25][26] - Performance metrics are shared between domestic and international teams to ensure alignment in goals and execution [31][32] - The collaborative model emphasizes shared objectives, enhancing operational efficiency and reducing internal competition [33][34]