In the first quarter alone of this year online consumer to consumer auctions in China hit $674 million. More than half of that 57% belonged to Taobao.
eBay China has the same number of customers as Taobao but could generate only half of Taobao - 28%.
Taobao was first out of the blocks in China with commission-free auctions. And Taobao has twice the sales as eBay. So, why is Taobao sweating it?
Taobao has stopped growing. It's market share has stalled over the past few quarters = almost a year. And if you aren't growing, then look out.
Taobao's answer - to open physical stores to introduce its idea to still Internet shy Chinese.
Taobao has some 20 million members. That means there are still 1.28 billion people that have NOT been reached yet.
Taobao is big and can only get bigger as its idea catches on to more and more Chinese and as more and more Chinese get comfortable buying online.
What do you think?
go to 老毕看中国
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