I Love Taobao

Online spending in China last year totaled RMB 59.4 billion. Of that, 43.3 billion alone was spent on Chinese online retailer Taobao.com. For comparison, Taobao points out that gross profits for international grocery chain Carrefour last year were 24.8 billion – that is, people are spending more through an online retailer than a traditional store.

Taobao had 50 million users in 2007, with 116 million different products for sale online. And on average, every user of Taobao spent RMB 817.

I was one of those 50 million users last year, and though modest, my own Taobao spending was higher than the amount mentioned above. I have bought a pair of gloves, a wallet, one pair of shoes, two scarves, three pairs of socks, 10 items of clothing, over 10 kawaii Japanese things (from a pink puffy coin-purse to cosmetics bags), some snacks, and lots of China Mobile credit charging services. In total, I spent more than RMB 2,500 on Taobao last year.

Of course, my own spending is a drop in the bucket compared to what I have seen online. Everyday I see new posts from people sharing their experiences shopping through Taobao; some with pictures of what they buy. Lots of these posters spent at least RMB 20,000 within six months. The most impressive was someone who spent RMB 200,000 on designer bags on Taobao within a six-month period.

It’s no wonder that Taobao is so popular. Especially with the fast-rising price of goods in China, discounted products on Taobao attract lots of people. Nowadays, after fans of Taobao try on the clothes and shoes they like at department stores or small shops in markets, they go online immediately when they get home and start their virtual shopping journey – typing in the brand name or a description, comparing the discounted prices, then making their final decisions after factoring in sellers’ credits and courier fees. With luck, they may get some of the exact same products for 60% less.

With Taobao, people can also get ahold of things they can’t find in stores and save themselves time spent searching on the streets. Online brokers can help buy products abroad and ship them to you. You can even find fortune tellers offering their services online. Users can have their fortunes told by people clear across the country . . . and meanwhile, Taobao makes a fortune.

Claire Li