Less than a year since its introduction, Taobao Factory Channel’slow-cost, low-barrier model has proved immensely successful and has been embraced by more than 100 million active consumers and 7,000 factories from the country’s manufacturing clusters.
Among the factories to have benefited from this model is Guangzhou Caici Cosmetics. With e-commerce operational support provided by Taobao Factory Channel, the 13-year-old beauty-product manufacturer was able to focus on creating products that met consumer needs, and in just two months of joining the platform, it managed to sell 1 million monthly units of a newly launched hand cream. Aside from fostering greater product innovation, Taobao Factory Channel’s direct-to-consumer model also allows shoppers to find high-quality goods at competitive prices.With the digital penetration of factories estimated to be at just 20%, this C2M model still has plenty of growth potential.
Taobao Factory Channel and Taobao Deals are key initiatives of Taobao’s C2M business unit aimed at helping factories with different e-commerce capabilities gain easy access to online opportunities.