As per management, via providing value for brands/merchants in online/offline sales, brand marketing, customer acquisition/engagement and productivity improvement, Alibaba now generates revenue from the distribution, brand marketing, customer service budget pool of brands/merchants, compared to transaction-only budget pool in the past.
Management discussed that Tmall GMV accelerated to 40% in the current quarter to date on YoY basis as more brands adopt Alibaba's databank to explore non-transaction initiatives (i.e. Market research, brand recognition, interest formation, loyalty program, etc).
Management also shares several metrics in user cohort. For example, consumers that have registered for 5 years averagely place 123 orders/purchased 24 categories/spend ~Rmb 12k per year, compared to 38 orders/9 categories/~Rmb 3k of first year registered users.
Change in Strategy
Meanwhile, the company will also change the term of online marketing revenue to customer management revenue to reflect Alibaba?s value position in helping merchants/brands to acquire, engage and retain customers.
