Taobao Flash Sale Launches In-Store Group Buying

Taobao Flash Sale Officially Launches In-Store Group Buying

The long-rumored in-store group buying business of Taobao Flash Sale has finally arrived. On September 20, 36Kr learned exclusively that Taobao Flash Sale officially launched its in-store group buying business, initially covering core commercial areas in three cities: Shanghai, Shenzhen, and Jiaxing. The business involves multiple catering categories such as tea drinks, desserts, main meals, buffets, and local specialty snacks. These group buying products are available not only on Taobao Flash Sale but also on Alipay and Amap apps.

Backed by 1 Billion-Level DAU Potential Traffic

A Taobao Flash Sale relevant person in charge told 36Kr, “It’s a natural business development—since the launch of Flash Sale, both consumers and merchants have hoped that Flash Sale’s discounts and services can extend to dine-in. Therefore, our products and services have been upgraded accordingly.” From Alibaba’s overall perspective, this is another step forward in the in-store business after Amap’s “Street Sweeping List” took the first shot.

It is understood that the “in-store group buying” business of Taobao Flash Sale is currently mainly handled by the Ele.me team in terms of product, supply, and operation, with in-depth collaboration with Amap and Alipay. Users in the three pilot cities can enter from the (core entry) of the Taobao Flash Sale channel or by searching for keywords like “in-store group buying”. In addition, there are corresponding entries on Amap’s merchant pages and Alipay’s card package coupons, allowing users to place orders for group buying products. These three entry points represent a traffic base with 1 billion-level DAU potential.

Merchant Supply and Discount Strength

In-store business requires not only traffic but also ground infrastructure such as merchant supply and content (UGC, evaluation systems). The first batch of Taobao Flash Sale group buying merchants includes many that have achieved significant growth in the previous Flash Sale takeaway business. Merchants offer discounted in-store group buying packages, and the platform also provides certain subsidies to enhance the attractiveness of the final price of group buying products.

The group buying business currently focuses on catering, involving tea drinks, desserts, main meals, buffets, and local specialty snacks. Cooperative brands include both national chain catering brands like Guimanlong, Xinwang Tea Restaurant, and Qinghuajiao Pepper Fish, as well as local specialty catering merchants and regional brands favored by local consumers, such as Louxia Yogurt and Principal Feng’s Old Hot Pot.

In terms of supply and discount strength, the group buying products are quite competitive: for example, the original price of Xu Fu Niu Hot Pot’s “Reunion Millennium Memory” two-person set is 170 yuan, with a group buying price of only 68 yuan; the original price of Qinghuajiao Pepper Fish’s “Inherited Sichuan-Style Secret Grilled Fish Set” is 207 yuan, and the discounted group buying price is only 153 yuan.

Early Signals and Alibaba’s In-Store Business Layout

Taobao Flash Sale’s launch of in-store group buying actually had early signals. At Alibaba’s Q2 earnings call, Jiang Fan, CEO of Alibaba’s E-commerce Business Group, revealed, “Flash Sale currently has about 150 million DAUs, and these users also have needs for in-store pickup and group buying. We will look at it from the perspective of meeting user needs, especially in collaboration with the home delivery business, to provide users with more diversified services, and we are testing and exploring in some cities.”

Alibaba’s in-store business has shown momentum in both content and transaction sides within just 10 days. Amap’s “Street Sweeping List” redefined the logic of rankings and grass-planting in the industry as the first shot of the in-store innovative business in September. According to Li Gang, the person in charge of Amap’s “Street Sweeping List”, the “Street Sweeping List” is essentially a credit evaluation system, which means it has a sticky tool attribute. On the first day of its launch, the “Amap Street Sweeping List” reached 40 million DAUs, and the overall traffic of “street food shops” in the list increased by 187%.

Transaction Scenario Layout

The transaction scenario is the second step, divided into online and offline. Online, Taobao Flash Sale, Amap, and Alipay will all provide traffic support for merchant group buying products; offline, participating merchant stores will display relevant promotion entry materials, and consumers can receive discounts and place orders by “tapping” (including scanning table stickers, card stickers, etc.) through Taobao, Amap, and Alipay.

Over the past 100 days, Taobao Flash Sale has accumulated a considerable number of active users and purchasing users. Launching in-store group buying now allows platform merchants to continue amplifying this traffic dividend.