Sally Zhang | A Masterclass in Dominating Alibaba's Taobao eCommerce Platform

Today on The Negotiation, Sally Zhang, a certified lecturer at Alibaba Taobao University, gives us a masterclass on the largest company in China today. What impresses Sally the most about Alibaba is its big data capabilities. “They know their customers, where their customers go, what they like, and what their habits are,” she states.

As a lecturer, Sally notes that a lot of new vendors do not know how to run their own e-commerce stores, with regards to legal, logistics, and supply chain know-how. At the same time, while Sally is a lecturer to many “students”, she learns just as much—if not more—from a number of them about running a business. Her students, in fact, include a number of CEOs.

Sally speaks on a variety of topics, including Alibaba’s winning edge with regards to their ability to retain competitive prices (Chinese consumers, after all, tend to opt for the lowest available prices). She also discusses Alibaba’s loyalty program, which she believes to be one of the key tools the company used to maximize its 11.11 sales.

Sally is then asked about the difference in tactics between how platforms drive traffic versus how the brands using the platform drive traffic. What stands out here is integrative marketing—or “Uni Marketing”, as Alibaba calls it. They reach their customers through a large variety of ways, from traditional to social media advertising.

The next major consumer group in China are those generations who have the freest time and are the most mobile-savvy. These are the later millennials and Gen-Z, who were born in the 1990s and the 2000s.

For the upcoming Chinese New Year (also called Spring Festival) in 2020, Sally forecasts an increase in wine sales—exceeding even those of 11.11. She encourages wine sellers to take advantage of this occasion, likening it to “cutting the grass” or cashing in after accumulating a large customer base over time.

Adaptation is the key to driving eCommerce results on Alibaba’s platforms. Western brands tend to have difficulties entering the Chinese market due to their preference for a lot of flexibility when the government imposes many restrictions on foreign companies. Sally observes that these companies usually refuse to change their ways until they “hit a rock”.

It helps tremendously to take advantage of Alibaba’s big data resources in order to create appropriate market strategies. Lecturers such as Sally advise on these very topics, for example by drawing parallels between the foreign company and their vertical competitors on the platform they are using.

If a foreign brand is looking to enter the Chinese market, Sally suggests finding a local partner to help with growing the business. This local partner knows the data, the customers, and industry trends.