Perspectives
China has experienced an explosion of growth in e-commerce that has changed the landscape of the consumer market. Accessibility and affordability have become the mantra of Chinese e-commerce B2C platforms. But one thing has not been guaranteed to the Chinese “netizen”: product quality. With so many competing e-commerce ventures in China, consistency in product quality can fall to the wayside. Though most B2C platforms value quantity over quality, there is one e-commerce giant reversing this trend: Taobao.
Taobao recently announced that it’s restructuring its management system and introducing new regulations to monitor product quality. Essentially, businesses selling their products online will be held to the standard of quality expected by the consumer upon purchasing. In a volatile e-commerce market, Taobao is looking to restore trust between the consumer and the business.
Taobao, with its new approach to managing member businesses, is removing the disconnect between consumer and business that has plagued the e-commerce world in China. Though many small and medium businesses feel pressured by new regulations, Taobao has assured them that if product quality is maintained, no business will suffer losses due to the regulations. Taobao may practice tough love, but it is all toward a necessary end that will restore consumer confidence in e-commerce.
Further Reading:
China’s Taobao Mall hits merchants’ pockets to improve service
Taobao works to bring order to booming e-market
