The Strategy Research of the Community Group-buying Mode in the Sinking Market —— Take Taobao as an Example

Abstract

With the continuous growth of the population in third- and fourth-tier cities and non-county-level areas, the consumption potential of the sinking market is gradually emerging and constantly released. In order to meet the demand of this market, Taobao has adopted the innovative strategy of the community group-buying model. This paper deeply discusses how Taobao can enhance its brand awareness and competitiveness in the sinking market through a series of strategies. To be specific, Taobao understands consumer needs through detailed market research, formulates targeted strategies, and actively supports small and medium-sized merchants to help them better integrate into the market. In addition, Taobao also uses big data analysis and consumer insight to accurately grasp the market demand, so as to provide products and services more in line with consumers' expectations. At the same time, Taobao is close to consumers' lives through localized content marketing and enhances the affinity and influence of the brand. In order to further optimize the supply chain, Taobao has built a localized supply chain system to ensure that goods can reach consumers quickly and efficiently. Through the implementation of these strategies, Taobao has successfully met the needs of consumers in the sinking market, bringing about a significant improvement in the potential of the consumer market. At the same time, these strategies also provide Taobao with a diversified means of competition in the face of other competitors, so that it can maintain a dominant position in the fierce market competition.