On September 25th, it was reported that at the 24th China International Industrial Fair (CIIE), Taobao disclosed relevant data on the industrial products market to the public. According to data, in the past year, the industrial products market on Taobao has maintained strong growth: the four vertical categories of parts and consumables, electronic and electrical, hardware and electromechanical, and complete equipment have a market size of over 10 billion yuan, and the annual transaction growth of six new product categories such as industrial fans and exhaust safety valves has exceeded 100%.
At present, the industrial products market on Taobao and Tmall has a product volume of over 500 million items, with over 1400 categories of industrial product procurement. The massive supply of goods comes from over 700000 powerful factories and over 6000 specialized and innovative enterprises, covering 226 county-level industrial belts across the country.
It is understood that unlike other product categories, orders for Taobao industrial goods stores often come from professional industrial standard parts factories, with large order amounts and high quality requirements. In the eyes of professional buyers, Taobao industrial products have become synonymous with professional quality and diverse categories. If it’s an accessory that can’t even be found on Taobao, then there’s no need to search, it’s definitely not available for sale in China, “said a factory purchaser.
The “2024 Digital Procurement Development Report” data shows that the online penetration rate of the domestic enterprise procurement market is less than 10%, and there is a huge opportunity for Taobao to explore. The launch of Taobao Enterprise Purchase is the latest measure for Taobao’s enterprise service industry to explore the trillion dollar blue ocean market.
Compared to the needs of C-end users, enterprise procurement processes are complex, with a wide variety of categories, low circulation efficiency, and higher costs. Taobao Enterprise Purchase focuses on typical procurement scenarios and needs of small and medium-sized enterprises, gathering industry categories such as complete equipment, parts and consumables, electronic components, commercial office, industrial and commercial finance and taxation, selecting over one million merchants, and covering a product scale of 1.1 billion. At the same time, in response to the experiential needs of the enterprise procurement group, Taobao Enterprise Procurement has also upgraded and launched functional links such as one click invoicing, corporate payment, procurement list, and list guidance to better meet the procurement needs of enterprises and improve overall procurement efficiency.
Tian De, the head of Taobao’s enterprise purchasing business, said, “We have invested hundreds of millions of subsidies through high-quality product supply, experience chain, and exclusive rights upgrades to help millions of small and medium-sized enterprises obtain cheaper, more efficient, and more worry free experiences in the procurement field