Alibaba's Quanzhantui Tools Goal to Help Merchant Performance amid E-Commerce Challenges

As Taobao and Tmall face bold competition, Alibaba’s Quanzhantui digital marketing tool aims to boost merchant sales by 66% during Singles’ Day in order to boost monetization on the e-commerce platforms.

Alibaba Group Holding has hailed potential success with Quanzhantui, its six-month-old digital marketing platform aimed at increasing revenue within its Taobao and Tmall units. The merchant-support tool employing artificial intelligence was launched in July and has witnessed a rapid increase in adoption by merchants, particularly during the last year’s Singles’ Day sales.

Alimama's marketing director Eddie Liu reported that more than 250,000 merchants and 1.3 million products were served by that particular tool on the first day of Singles’ Day which started on Monday. Liu pointed out that the average gross merchandise value (GMV) for merchants who used Quanzhantui on that day before other advertising avenues opened increased by 66% from the day before.

Such successes follow amidst weakening recessionary ecommerce market, lower domestic economic activity and intense competition from PDD Holdings and ByteDance. Both competitors have run low cost campaigns and better shopping experiences.

Surprising analysts, Alibaba's Taobao and Tmall Group reported a 1 per cent revenue decrease in the June quarter. This decline comes after high growth rates in the past, concerned with imbalance between the GMV growth and customer management revenue. To solve these problems, the group launched Quanzhantui and a technology service fee which it expects to yield good results.

Eddie Wu Yongming, Alibaba's Chief Executive, was confident that Quanzhantui would have a tidal impact, saying that in six to twelve months, things would be very different. It appears that there is a mindset with the company to prepare itself for an intense competition and the potential for growth is revenue too for the agents.