After Alibaba increased its investment in flash sales, active consumers on Taobao grew by 25%

As an important player in this round of the food delivery battle, Alibaba has also released its latest financial report.

According to the quarterly financial report released by Alibaba Group on August 29, the investment in flash purchase businesses such as food delivery has already been reflected in the contribution to traffic on the Taobao main site.

It is understood that driven by the rapid growth of Taobao's flash purchase, the customer management revenue of the Chinese e-commerce group reached 89.252 billion yuan, a year-on-year increase of 10%, exceeding the consensus expectations of Bloomberg analysts; among them, Taobao's flash purchase has rapidly achieved phased results, with the monthly active users of the Taobao app increasing by 25% year-on-year in the first three weeks of August, and the monthly active consumers and daily order volume of the e-commerce business continuously hitting new highs.

Alibaba Group CEO Eddie Wu stated in the financial report, "We are heavily investing in instant retail business, achieving rapid phased results and winning consumer mindshare. By integrating consumption platforms, we generate significant synergies, driving monthly active consumers and daily order volume to new highs."

In the past two months, the instant retail war surrounding food delivery has continued. According to industry news, from August 7 to 9, the daily order volume of Taobao flash purchase exceeded 100 million orders for three consecutive days, surpassing competitors and becoming a landmark market node.

In this regard, Goldman Sachs, in an expert interview analysis released on August 10, believes that the competition in the food delivery industry has changed the market landscape, and Taobao flash purchase is expected to gain a 45% market share. Recently, Goldman Sachs released a new research report, stating that the intensified competition in the food delivery industry since May has led to losses exceeding expectations for leading companies in the second quarter, and their long-term market share may permanently decline.

Data from third-party data company QuestMobile shows that in July this year, the daily active users (DAU) of the Taobao app increased by 17% year-on-year compared to July last year, strengthening its leading advantage over other e-commerce platforms.

Similar to its competitors, Alibaba is also increasing investment in food delivery, aiming to drive overall revenue growth of the platform through high-frequency business. The financial report shows that in this quarter, Alibaba's Chinese e-commerce group revenue reached 140.072 billion yuan, a year-on-year increase of 10%, while maintaining a healthy profit level.

Industry insiders believe that rational investment in flash purchase effectively changes the market landscape, wins market competition, and becomes an important driving force for Alibaba's steady growth in its Chinese e-commerce business.

With the boost from platform investments, Taobao flash purchase is becoming a new growth opportunity for brand businesses.

According to information released by Taobao Tmall, in July this year, 395 non-food brand merchants on Taobao flash purchase achieved monthly transactions exceeding one million, with 66 brands surpassing ten million. The e-commerce platform provides a user base for flash purchase, while flash purchase opens new channels for the e-commerce platform's products and services, jointly reducing operating costs and releasing incremental value, forming a positive cycle.

Alibaba's financial report also pointed out that while continuously optimizing user experience and improving operational efficiency, the company is also integrating the supply chains, users, and member rights of various businesses to promote synergy between instant retail and other parts of the Alibaba ecosystem.

At the same time, the high-net-worth membership system is also demonstrating new competitiveness. According to Alibaba's financial report, the number of 88VIP members grew by double digits year-on-year this quarter, reaching 53 million, and these members represent the highest purchasing power consumer group of Alibaba On August 6th, Taobao launched a brand new VIP membership system, integrating membership benefits from Ele.me, Fliggy, Amap, and more, covering various life scenarios such as dining, entertainment, and daily necessities. The 88VIP membership benefits have also been fully upgraded and are combined with Taobao's VIP membership benefits. This integration is beneficial for further attracting high-spending consumers.

From the actions of various companies, it appears that future strategies will focus on collaborative efforts and group operations, which will also benefit Taobao's flash sales with more resource endowments. With "Taobao Flash Sales" driving a 25% increase in monthly active users and Alibaba Cloud revenue reaching a three-year high, Alibaba seems to be welcoming a moment of revaluation