Core Insights - The cross-border e-commerce market in China is projected to reach 17.66 trillion yuan in 2024, reflecting a 4.8% increase from 16.85 trillion yuan in 2023 [1] - Cross-border e-commerce transactions are expected to account for 40.27% of China's total goods trade import and export value of 43.85 trillion yuan in 2024 [1] - The penetration rate of cross-border e-commerce in China has increased from 38.86% in 2020 to 40.35% in 2023 [1] Industry Structure - The cross-border e-commerce industry consists of three main types: export cross-border e-commerce platforms (e.g., Amazon, eBay, TikTok), import cross-border e-commerce platforms (e.g., Tmall Global, JD International), and cross-border e-commerce service providers (e.g., Ant International, PingPong) [2] - In 2024, the export share of cross-border e-commerce is expected to be 77.6%, while imports will account for 22.4% [2] Market Dynamics - The rise of emerging platforms like Temu and TikTok has intensified competition in the cross-border e-commerce sector [1] - The industry is experiencing pressure due to the introduction of new models such as full-service management, impacting sellers' opportunities [1] - In 2024, there were 17 financing events in the cross-border e-commerce sector, a decrease of 22.73% year-on-year, with total financing amounting to 408 million yuan, down 97.4% from the previous year [2]

Core Viewpoint - The article discusses the decline and eventual shutdown of the Kaola Haigou app, highlighting its inability to innovate product offerings and compete effectively in the cross-border e-commerce market, particularly against Tmall International [2][6][16]. Group 1: Company History and Transition - Kaola Haigou, originally known as NetEase Kaola, was sold to Alibaba in 2019 and rebranded. The app was officially taken down on March 31, 2025, but signs of its decline were evident much earlier [3][4][6]. - The app's user base and operational team significantly shrank after a major downsizing in October 2021, where the team was reduced from over 400 to just a few dozen [6][7]. Group 2: Market Position and Competition - In Q3 2021, Tmall International surpassed Kaola Haigou with a market share of 37.4% compared to Kaola's 26.0%, indicating a shift in consumer preference [7][8]. - Monthly active users for Kaola Haigou dropped from 7.42 million in July 2020 to 6.44 million by September 2021, reflecting a downward trend in engagement [7][8]. Group 3: Product Offering and Consumer Behavior - The product mix of Kaola Haigou was heavily concentrated on a few categories such as milk powder, diapers, cosmetics, and health products, leading to stagnant growth due to a lack of new offerings [13][14]. - Employees noted that many consumers shifted to Tmall International for better prices, indicating a loss of competitive edge for Kaola Haigou [8][14]. Group 4: Strategic Misalignment - After its acquisition, Kaola Haigou faced strategic misalignment with Tmall International, leading to overlapping services and products, which diluted its unique value proposition [16][18]. - The marketing costs for Kaola Haigou were higher than those for Tmall International, making it difficult to attract and retain users effectively [18][19].

Core Viewpoint - The article discusses the quiet shutdown of the Kaola Haigou app, previously known as NetEase Kaola, highlighting its decline in the competitive cross-border e-commerce market, particularly against Tmall International [1][2][4]. Group 1: Company Background and History - NetEase Kaola was launched in January 2015, benefiting from favorable cross-border e-commerce policies and leveraging NetEase's ecosystem for customer acquisition [6][8]. - In 2019, NetEase sold Kaola to Alibaba, which rebranded it as Kaola Haigou, but the app has now been taken offline [2][4]. Group 2: Market Position and Competition - By Q3 2021, Tmall International held a market share of 37.4%, surpassing Kaola Haigou's 26.0%, indicating a significant shift in competitive dynamics [4]. - In 2021, Kaola Haigou's operational team was drastically reduced from over 400 to just a few, reflecting a lack of confidence in its future [4][11]. Group 3: User Engagement and Performance Metrics - Monthly active users for Kaola Haigou dropped from 7.42 million in July 2020 to 6.44 million by September 2021, with further declines expected [5]. - By late 2022, Kaola Haigou's app ranked 58th in the App Store's shopping category, trailing behind lesser-known competitors [5]. Group 4: Strategic Challenges - Kaola Haigou faced an identity crisis post-acquisition, as it competed directly with Tmall International, leading to overlapping products and services [10]. - The app's marketing costs were higher than Tmall International's, and its user retention was hindered by the need to redirect users from a high-frequency shopping environment (Taobao) to a low-frequency one (Kaola Haigou) [10][12]. Group 5: Future Outlook - The article suggests that the cross-border e-commerce segment may struggle to sustain independent platforms like Kaola Haigou, as evidenced by the closure of similar businesses [9]. - The success of membership-based models like Sam's Club indicates that there is potential for imported goods, but Kaola Haigou's operational model may not be viable in the long term [9].

Core Viewpoint - The article discusses the decline of Kaola Haigou, a once-leading cross-border e-commerce platform, after its acquisition by Alibaba, highlighting its transformation from a market leader to a supporting role within Alibaba's ecosystem [5][19][50]. Group 1: Kaola Haigou's Decline - Kaola Haigou has become inactive, with its app removed from major app stores and its website inaccessible [6][18]. - After being acquired by Alibaba for $2 billion in 2019, Kaola's market share was 27.7%, making it the industry leader at that time [11][20]. - Following the acquisition, Kaola underwent significant restructuring, losing its independent brand identity and becoming an auxiliary to Tmall International [14][16][39]. Group 2: Market Changes and Challenges - The shift in market trends towards fresh e-commerce and live streaming has diminished the appeal of vertical e-commerce platforms like Kaola [26][30]. - By 2021, Kaola's market share had dropped to 22.4%, and it continued to decline in the following years [49]. - The membership-based e-commerce model that Kaola attempted to implement failed to establish itself as a standalone business model, leading to a loss of competitive advantage [29][30]. Group 3: Integration into Alibaba's Ecosystem - Kaola was rapidly integrated into Alibaba's ecosystem, with significant personnel changes and resource allocation to Tmall International [36][44]. - The original logistics and supply chain capabilities of Kaola were absorbed into Alibaba's broader logistics network, diminishing its operational independence [45][67]. - Despite its exit from the market, the resources and user base of Kaola have been effectively utilized to bolster Tmall International's position, which now holds nearly 40% of the market share [68][69].

Core Insights - Kaola Haigou has completely disappeared ahead of the 618 shopping festival, with its app removed from stores and its website inaccessible [1][8] - The platform, once a leader in the cross-border e-commerce sector, has become a "discarded child" of Alibaba after its acquisition [8] Group 1: Company History and Acquisition - Kaola Haigou, originally known as NetEase Kaola, was acquired by Alibaba for $2 billion (approximately 14 billion RMB) in 2019, which significantly increased Alibaba's market share in cross-border e-commerce to over 50% [5][10] - Following the acquisition, Kaola underwent deep restructuring, losing its independent platform status and becoming an auxiliary role within the Tmall International ecosystem [6][7] Group 2: Market Position and Performance - At its peak in 2019, Kaola held a market share of 27.7%, leading the cross-border e-commerce industry [9] - However, by 2021, its market share had declined to 22.4%, and it continued to fall behind Tmall International [27] Group 3: Strategic Integration and Challenges - The integration process involved significant personnel changes, with a drastic reduction in the business team from over 400 to less than 20 by 2022 [21][19] - Kaola's resources, including its supply chain and logistics capabilities, were gradually absorbed into Tmall International, diminishing its independent operational capacity [26][27] Group 4: Broader Implications of Alibaba's Acquisition Strategy - Alibaba's acquisition strategy often leads to the loss of independent growth potential for acquired companies, as seen with other brands like Youku and Xiami Music [28][30] - The shift towards a platform model in Tmall International has made self-operated models like Kaola's less viable, reflecting a broader trend in Alibaba's business strategy [32][33]