Has Alibaba felt the danger?
According to reports, Jack Ma, who rarely speaks about $Alibaba(BABA)$ 's business after retirement, recently held a high-level meeting within the Taotian Group. Jack Ma believes that Taotian Group is currently facing a highly challenging competitive situation. He cited Nokia and Kodak as examples, stating that it takes only six months to a year for a company to go from being an industry benchmark to death. In the internet industry, this process may be even faster. Jack Ma seems to think that the next opportunity lies with Taobao, not Tmall, and that Alibaba's e-commerce should "return to Taobao."
Just half a year ago, Liu Qiangdong of $JD.com(JD)$ emphasized a "low-price strategy" during an internal meeting, stressing that low prices are "1," while quality and service are two "0s." Once the low-price advantage is lost, all other so-called competitive advantages will be reduced to zero.
This reflects the changing landscape of China's e-commerce industry:
Pinduoduo continues to make strong advances, while Douyin and Kuaishou are rapidly catching up.
Previously, these three major platforms were perceived by consumers as representing "low prices across the entire network."
Faced with users' choices, did Alibaba and JD.com, which have always emphasized "consumption upgrading," feel the danger?
China E-commerce platforms market share
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The rise of new platforms represents an opportunity for investors to diversify their portfolio and tap into the potential of China's rapidly evolving e-commerce industry.
JD.com's focus on low prices is indicative of the changing landscape of China's e-commerce industry where Pinduoduo, Douyin, and Kuaishou are gaining ground.
Interesting insights from Jack Ma on the challenges facing Taotian Group. Nokia and Kodak's examples highlight the need for constant innovation.
Alibaba's potential return to Taobao shows the need for adaptation to remain competitive in the market.