Alibaba is hailing Quanzhantui, its latest AI-powered digital marketing tool, as a major success in its push to enhance the monetization of its domestic e-commerce platforms, Taobao and Tmall. Rolled out earlier this year, the tool has quickly gained attention for its effectiveness in driving growth for merchants on these platforms.
Its debut during the Singles’ Day festival proved pivotal, as Alibaba continues to face competition from rivals such as PDD Holdings and ByteDance.
Quanzhantui’s Impact on Singles’ Day
More than 250,000 merchants used Alibaba’s Quanzhantui during Singles’ Day, which officially began on November 11 but has since expanded into a multi-week event. According to Eddie Liu, who leads marketing and branding at Alimama, the platform managed over 1.3 million products on the event’s opening day alone.
Developed in August, this tool leverages advanced AI to assist merchants in optimizing their marketing strategies, thereby facilitating customer attraction and retention during the shopping frenzy. Liu noted that Quanzhantui helped participating merchants grow their average gross merchandise value (GMV) by 66% over the previous day—an impressive figure that highlights the tool’s effectiveness in boosting sales.
Alibaba’s Strategy to Combat Growing Competition
As China’s economy faces a slowdown and competition in the e-commerce space intensifies, Alibaba is under increasing pressure to find innovative ways to sustain growth. Quanzhantui represents a strategic move to not only bolster revenue but also strengthen the company’s foothold in an increasingly crowded market.
PDD Holdings’ Pinduoduo and ByteDance’s Douyin have been expanding their presence in China and globally. These platforms offer alternatives for consumers and are steadily eating into Alibaba’s market share. Quanzhantui’s performance during Singles’ Day signals Alibaba’s efforts to reclaim its lead by empowering merchants with tools that drive higher sales and better customer engagement.
The Road Ahead: Challenges and Opportunities
While Quanzhantui has shown significant promise, Alibaba has been facing some financial challenges. In the June quarter, the company reported a 1% decline in revenue for Taobao and Tmall Group (TTG), falling short of analyst estimates. This marked a slowdown compared to previous growth periods, which saw 4% and 12% growth in the preceding quarters.
Analysts have pointed out that TTG’s customer management revenue has not kept pace with its GMV growth, indicating difficulties in increasing commission revenues from merchants. To address these challenges, Alibaba has implemented two key initiatives: the launch of Quanzhantui and the introduction of a new technology service fee for merchants.
Eddie Wu Yongming, CEO of Alibaba Group, acknowledged that while the company expects these measures to improve monetization, it could take 6–12 months before the company sees substantial results. He remains optimistic, however, citing Quanzhantui’s initial success during Singles’ Day as an encouraging sign.
A Positive Step Forward
The successful launch of Quanzhantui marks a critical step in Alibaba’s efforts to remain competitive in the rapidly evolving e-commerce landscape. By providing merchants with cutting-edge AI-driven marketing tools, Alibaba is not only helping them achieve higher sales but also setting the stage for long-term growth.
With its rivals aggressively expanding their presence in the market, Alibaba’s ability to leverage technology to enhance the user experience and drive sales will be key to maintaining its leadership position. Quanzhantui’s performance during Singles’ Day offers a glimpse of what’s possible, signaling a promising future for both merchants and Alibaba itself.
The Information is Collected from South China Morning Post and MSN.
