Monday 11 October 2010

Week2-Web 2.0 The E-tailing tipping point

Analysis of Taobao Web 2.0 functions

I still use Taobao as a model to analyze the functions of Web 2.0 applied in e-retailing.

Hedonic aspects such as experience, interactivity and entertainment drive the online experience, (Childers et al., 2001). These three aspects are also the main features making up Web 2.0. Taobao has many promotion activities besides retailing, belonging to three hedonic aspects.

Experience
There is an amazing activity called “Free Trial Centre”, providing consumers a chance to try the product they admired. After customers have applied for the product successfully, the product will be delivered to them for free. The whole process doesn’t charge any fee, the only thing that customers should do is to submit trial feedback about their real personal experience after using the product. The more serious and active attitude the feedback presents, the more free trial chances the customer will get later.

Interactivity
BBS and Wangwang (a chatting tool like MSN) are the main interaction parts of Taobao. BBS is a place for all Taobao members to share their shopping experience, product evaluation and latest fashion news. Wangwang is a chatting tool for buyers ask sellers specific questions about product details. Buyers can get accurate information of the product through Wangwang, and it is also a good opportunity for sellers to show their hospitality to stimulate purchase. Both of them are good methods to build effective communication between buyers and buyers, and buyers and sellers. 


Entertainment
Fashion week section and Pictorial both offer popular collocation information and latest collection of fashion goods to consumers. The difference is ‘Fashion week’ focuses on mass fashion trends and ‘Pictorial’ is more brand perspective, providing current collection of a certain brand. Besides, there is a Taobao community, a platform like Facebook, containing games, sharing space, group-buying activity, credit system, etc. All these three entertainment methods bring fun and enjoyment to consumers when they are shopping online, which makes online shopping not only a pure buying behavior, but an interesting activity.



Through “Free Trial Centre”, consumers will have actual experience of the product. No matter how the product performs, the impression of Taobao service will be better. Through BBS and Wangwang, a good relationship will be built between consumers and retailers. What’s more, Fashion week section and Pictorial not only give a fashion guide to consumers, but also the hedonic atmosphere which will trigger buying behaviors.

According to Alibaba Group Research Centre (2010), the aim of shopping online has changed from “searching cheap”, to “seeking convenience”, to “pursuing unique”. That’s the biggest reason that Taobao now is focusing on web design.