Core Viewpoint - The article discusses the transformative impact of AI on Xianyu, Alibaba's second-hand trading platform, highlighting its strategic shift towards AI integration to enhance user engagement and operational efficiency [2][3][4]. Group 1: User Growth and Engagement - Xianyu has experienced a compound annual growth rate of 20% to 30% in user numbers over the past three years, with daily active users (DAU) approaching 50 million [2][3]. - The platform aims to accelerate user acquisition, targeting a DAU of over 100 million in the next two years, driven by the need to address declining selling frequency among existing users [3][30]. - The introduction of AI tools is expected to alleviate user pain points related to selling processes, thereby expanding the user base and increasing supply [3][6]. Group 2: AI Integration and Strategy - The integration of AI is seen as a pivotal factor for Xianyu's evolution, with the platform's AI user base reaching 10.2 million by early February 2025, representing about 20% of total users [6][9]. - AI has contributed to a 2% average increase in daily sales rates and has facilitated a total gross merchandise volume (GMV) of 200 million through smart management services [6][9]. - The strategic focus for 2025 will shift towards revenue generation, marking a departure from previous years where revenue was not a primary concern [6][21]. Group 3: Operational Efficiency and Future Directions - The AI initiative is structured around enhancing efficiency in transactions, with a focus on reducing the time sellers spend on listing and managing their products [10][22]. - Xianyu's AI strategy is divided into three phases: empowering existing transactions, innovating new models like "AI-assisted selling," and creating new demand scenarios [22][27]. - The "AI-assisted selling" model aims to streamline the selling process, potentially transforming Xianyu's business model by providing enhanced services rather than relying solely on transaction fees [24][25]. Group 4: Market Position and Competitive Landscape - Xianyu is positioned as a strategic innovation within Alibaba, targeting younger demographics and expanding its service offerings [4][5]. - The platform's approach contrasts with international second-hand platforms that typically charge high commission rates, as Xianyu seeks to balance service provision with profitability [24][29]. - The current market environment presents challenges, such as extended product replacement cycles, which necessitate a robust supply of goods to maintain user engagement [32][30].