E-COMMERCE IN CHINA: HOW COULD TMALL DUPLICATE SUCCESS OF TAOBAO AND BECAME INDEPENDENT?

Whether TMall can match the success of Taobao is the primary research aim. In order to address the research aim, the effectiveness of the current e-commerce operations of TMall, the brands capability of duplicating Taobao’s success and possible strategies achieving that are the research objectives. Findings from literature review highlight that TMall is the leader in the B2C segment and Taobao is the leader in the C2C segment in the Chinese e-commerce segment. Customers’ trust and reliability are two major factors that determine e-commerce business success in China. In order to address the problem statement, a mixed method research strategy has been focused. Quantitative data represents the perception of TMall’s customers and qualitative data represents the perception of the managers of TMall. Findings from the data analysis section highlight that TMall has the potential to become a brand like Taobao and can work independently. However, the brand needs to emphasise on some approaches like product differentiation, technological strategies like dedicated mobile app development and business expansion through international business initiative.
Acknowledgement
I thank the University authority to allow me the opportunity to work on the research project. It has been a great learning experience for me not only in terms of academics but also in terms of practical knowledge. Although acknowledging each and every person is difficult, but I would certainly like to thank my project supervisor, who mentored me during the course of the research. I would also like to thank my friends who helped me whenever I requested.
Introduction
1.0 Introduction:
The Chinese e-commerce industry has experienced a steady growth over the last decade and the experts suggest the growth is likely to continue for the coming years as well. Swilley, Hofacker and Lamont (2012) identified China as one of the top e-commerce markets in the world. In fact, the Ministry of Industry and Information Technology has suggested that the aim of the 12th Five year Plan would be to make China a leader in the global e-commerce segment. The Chinese e-commerce segment is found to be dominated by the Alibaba Group. Taobao and more recently TMall, two subsidiaries of the Alibaba Group are the two most preferred online shopping destinations among the Chinese people (Stats.gov.cn, 2015).
The recent growth of TMall is worth investigating. The brand is currently aiming to replicate the business of Taobao. Since there is a lack of research studies on TMall and its e-commerce operations, an investigation is carried out to assess whether TMall has what it takes to operate as an independent business entity.
1.1 Background of the study:
Past researches have highlighted the fact that the global e-commerce industry has been revolutionised over the past decade or so. The global e-commerce industry is currently dominated by brands like eBay, Amazon and Alibaba. However, Schubert, Williams and Woelfle (2011) believe that the global e-commerce segment is still growing and the industry could be flooded with several players in the coming years. The study of Chiu et al., (2014) highlighted that the reason why e-commerce is so popular among people is time saving operation. The customers need to just login to the site and it takes mere 5 to 10 minutes to complete an order, while the order processing could have been much more complex in the physical stores.


E-COMMERCE IN CHINA: HOW COULD TMALL DUPLICATE SUCCESS OF TAOBAO AND BECAME INDEPENDENT?

Type: Dissertation
Domain: E-commerce
Words: 10000
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