Alibaba connects Taobao and 1688 to tap new users as fierce e-commerce competition ratchets higher
- Taobao has recently featured three online stores under the 1688 name as it pushes to win over new users
- The move is just the latest restructuring measure Alibaba has taken as it re-jigs its sprawling empire to unleash innovation
Alibaba Group Holding is integrating the services of its online wholesale marketplace 1688 with its flagship consumer shopping platform Taobao, as the e-commerce giant continues to consolidate assets amid internal restructuring and rising competition.
Taobao has recently featured three online stores under the 1688 name as it pushes to win over new users, according to people familiar with the matter who declined to be identified. The three stores, with a total of nearly 180,000 followers as of Tuesday, target different customer groups with various products.
One of them focuses on home furnishings and general merchandise, another mainly sells office supplies and business consumables, while the third sells industrial products, such as hardware tools and packaging consumables.
The stores are part of a larger plan by Taobao and Tmall Group, Alibaba’s main e-commerce unit, to connect the resources of 1688 to Taobao in order to tap new users amid rising competition.
The access to Taobao allows 1688 merchants to directly face a wider range of users and test products in a larger market, the people familiar said.
Launched in 1999 when Alibaba was established, 1688 is one of the e-commerce giant’s earliest e-commerce platforms. The three stores being connected to Taobao target users with a variety of goods at ultra low prices.
