Alibaba's Delivery Fee Waiver Initiative for Hong Kong's Taobao Users

Alibaba Invests in Hong Kong E-Commerce

Alibaba Group Holding has earmarked 1 billion yuan (US$142 million) to waive delivery charges on Taobao users in Hong Kong for each order that costs more than 99 yuan during this fourth quarter. The three-month campaign covers categories such as fashion accessories, electronics, skincare, and cosmetic products on Taobao, according to Alibaba, owner of the South China Morning Post, at an event in the city on Thursday.

“Hong Kong has always been one of the most important markets for Alibaba,” said Ye Jianqiu, general manager of Tmall Taobao World, the overseas unit of Alibaba’s Taobao and Tmall Group, at the event. “We hope that Taobao could truly become a reliable friend to Hong Kong users, residents, and families.”

Delivery Stations and Customer Focus

Taobao users can pick up their orders at more than 800 delivery stations across the city operated by Alibaba’s Cainiao Smart Logistics Network, the company said.

Alibaba decided to launch this Hong Kong promotion in October because the fourth quarter is always the company’s peak sales season, according to C.K. Chan, head of Hong Kong and Macau operations at Tmall Taobao World. Both Ye and Chan did not provide any revenue or user number targets for this local campaign, pointing out that Taobao’s primary goal is to improve customer experience for its shoppers in the city.

Competitive Landscape in E-Commerce

E-commerce powerhouse Alibaba’s latest promotion for Taobao users in Hong Kong reflects the group’s efforts to boost services outside its home market, as competitors on the mainland have also stepped up their operations in the city.

• Shanghai-based Pinduoduo, run by discount shopping giant PDD Holdings, started offering delivery and payment options tailored for Hong Kong consumers in 2022.
• Chinese on-demand services giant Meituan saw its Keeta app become the largest food-delivery platform by the number of orders in Hong Kong in the first quarter, following its local launch in May last year.
• Alibaba previously established Tmall Hong Kong in 2021 as a dedicated shopping channel for merchants and consumers, but shut down the service in July 2022 owing to a change in business strategy.

Hangzhou-based Alibaba’s revenue in the June quarter rose 4 percent to 243.2 billion yuan, slower than the previous quarter’s 7 percent growth, amid an economic slowdown on the mainland. Its profit fell 29 percent to 24.3 billion yuan, worse than the 30.4 billion yuan forecast by analysts.