🎁 New gifting feature on Taobao
Alibaba has updated Taobao’s gift-giving feature, simplifying how users send presents. Now, buyers can send a virtual gift card with a passcode, eliminating the need for the recipient’s shipping address. This new method also allows the recipient to claim the gift within 24 hours by entering the code and providing delivery details. Previously, Taobao only allowed buyers to add extra units as gifts, which had limitations. The change represents a major shift in user convenience and functionality.
📱 Competing with Tencent's WeChat
The update comes days after Tencent’s WeChat introduced a similar improvement in its gifting feature. Tencent’s WeChat dominates social commerce, but Taobao’s revamp positions Alibaba to challenge its rival. With Taobao’s new system, virtual gift cards can now be shared on any platform, including WeChat itself. This move increases Taobao’s visibility across platforms, especially as users share gift codes beyond Alibaba’s ecosystem.
💸 Discounts to boost adoption
To encourage adoption, Alibaba is offering a 15% discount on some gift purchases made through the new feature. This discount helps Taobao compete with Tencent by drawing users who value ease and savings. By providing cross-platform sharing, Alibaba taps into the habits of a younger, mobile-savvy audience. This strategy aligns with ongoing competition between China’s two tech giants, who continue to battle for market share in e-commerce and social commerce.
📊 Strategic timing and outlook
The revamped gifting feature is part of Alibaba’s broader strategy to innovate Taobao. Launched on January 8, 2025, the update underscores the company’s efforts to maintain its dominance in China’s e-commerce market. Alibaba’s timing reflects a response to Tencent’s growing influence in social commerce. Analysts view this as a smart play to enhance user experience and defend against competition. How users respond could determine whether Alibaba’s strategy succeeds against Tencent’s WeChat.
Do you think Alibaba’s update will outshine Tencent’s WeChat?
