Alibaba Group’s c2c ecommerce brand Taobao recently launched a new channel targeting China’s growing senior population. The strategic move makes sense, given China’s quickly aging demographic. Those age 60 and above will surpass 255 million by 2020.
Taobao for “elders” will streamline the user experience with less overwhelming and targeted content for senior shoppers. China’s aged now depend heavily on the ecommerce site to deliver life’s essentials including groceries.
Indirectly reaching younger generations supporting their parents financially is also part of it. The new channel will have a peer-to-peer chat feature that connects the generational divide. Part of it includes a “pay-for-me” option where well-to-do offspring can turn around and pay up, once shopping cart reaches capacity.
The brand’s strategy aligns well with a market that has undergone rapid upward mobility and urbanization.
Some things to keep in mind: China’s population remains 43% rural compared to 18% in the U.S. Income levels are also significantly higher for those living in cities. Purchasing power is another important metric, since the vast majority of Chinese still cannot afford to travel.
The middle class continues to ballon, however. Demographers expect it to expand from 430 million today to 780 million in the mid-2020s.
Travel brands targeting China’s outbound traveler should take note and consider these familial dynamics. Recent data from Tuniu estimates those 55 and older account for 18% of the total China online travel market.
Here’s additional background on Chinese family life from the Global Policy Institute.
“While it is no longer the norm for extended families to live together, family members still retain strong ties, and often depend on each other for financial and interpersonal support. Parents encourage and help their adult children by providing financial assistance and childcare, and children care for their elderly parents by providing emotional support, financial subsidies, and physical help.”
Find more insight about the campign on Alibaba’s official news channel.
Here's an explainer video about how Taobao works:
And for our Subscribers
- Mar 21, 2019 TikTok Mania: Critical Brand Marketing and Ad Strategies For Travel & Hospitality
- Mar 15, 2019 Video Presentation: WeWorking Global Business Travel
- Mar 14, 2019 Analysis: WeWork potential to become the next big corporate travel buyer-intermediary
- Jan 9, 2019 Deep Dive Into MINDBODY and Wellness Distribution In Travel 2019
- Nov 21, 2018 GetYourGuide and Yelp Latest To Join Reserve with Google (RwG) Marketplace
- Nov 14, 2018 The TripAdvisor 2020 Report
- Oct 29, 2018 Blockchain Will Lean On Community To Get Through Crypto and ICO Chill
- Oct 1, 2018 Reserve with Google (RwG): Connectivity Partners Database
- Sep 24, 2018 Reserve With Google: Implications For Online Travel And The In-Destination Experience
- Sep 5, 2018 The Metro America Report: Population Centers In Flux
- Aug 17, 2018 White Paper: A Case For Points-Driven Destination Loyalty Networks
- Aug 9, 2018 AdTech Evolution | The Multi-Tools Of Online Travel
- Aug 1, 2018 AdTech Evolution | The Brand Death Conspiracy
- Jul 7, 2018 Just Call It Amazon For Hospitality
- Jun 20, 2018 Request Access: LUFT XR Industry Cluster Tracker
- Jun 19, 2018 Aligning With The Nascent Transcendent Tech Cluster
- Jun 12, 2018 Strategy Report: How Big Travel Lost The Consumer
- May 31, 2018 Meow Wolf Announces Music Festival For The New Transcendentalist
- May 31, 2018 Transcendence In Travel Report 2018
- May 18, 2018 CEO Insight: RedAwning on Future of Vacation Rental Distribution
- May 10, 2018 The New Google Maps Will Redefine Tours & Activities This Summer
- May 2, 2018 Amazon Trials New Housekeeper Workforce, Potential Synergies With Home Sharing
- Apr 26, 2018 Amazon Prime Price Increases, U.S. Market Saturation Points To Shifting Strategy
- Apr 20, 2018 Amazon's Loyalty Strategy Boils Down To Transforming Value Into Addiction
- Apr 17, 2018 Rental Economy DNA: Opportunities Within The Folds
- Apr 7, 2018 Hi Jeff! Please Help Share My Home
- Apr 5, 2018 Analysis: Amazon Primed For Vacation Rental Management
- Mar 27, 2018 Why Facebook Needs To Act Fast To Contain Its Brand Trust Breach
- Feb 27, 2018 Sentiment Analysis: How America Actually Feels About Facebook
- Feb 21, 2018 How AT&T Could Become The Next Big Travel Industry Gatekeeper
- Feb 19, 2018 The Magic Leap: Mixed Reality Will Transform Travel Within a Decade
- Feb 19, 2018 Documentaries a Good Proxy For Wider Adoption of Virtual Reality
- Feb 14, 2018 How Taobao Targets China's “Silver Economy”
- Feb 7, 2018 Prediction: Large Corporate Buyers Will Accelerate Blockchain Adoption in Travel
- Feb 2, 2018 VR Live-Streaming of PyeongChang Olympics Points to Future of Virtual Reality in Travel
- Jan 29, 2018 Young Americans Spending More Time At Home
- Jan 27, 2018 Spain Moves First On 5G Announcement, Before Mobile World Congress
- Jan 14, 2018 ISP Slow Lanes and Fast Lanes Could Spell Trouble For Hotel Bookings.
- Jan 14, 2018 More Uber Billions For Urban Automation
- Jan 14, 2018 Spike in Russia tourism to Cuba coincides with trade renaissance, as U.S. disengages
- Jan 8, 2018 Google Pay Will Push Hotel Chains to Take Digital Payments Seriously
- Jan 8, 2018 The U.S. Will Likely Look to Spain to Help Build its High-Speed Rail Network
- Nov 1, 2016 Heading to Argentina on business? Know These Top Twelve Tourism Industry Leaders
- Oct 8, 2016 2016 Colombian Travel Market Forecast: Cheap Peso Attracts Millennials, Zika Impact Palpable
- Sep 14, 2016 If TripAdvisor Were an OTA, How Big Would It Be?
- Aug 4, 2016 Analysis: UX Could Become Airbnb's Achilles' Heel
- Apr 14, 2016 Flipkey Brand Days Could Be Numbered
- Apr 14, 2016 Why Travel Loyalty Programs Belong on The Blockchain
- Mar 24, 2016 Analysis: HomeAway Should Push Harder to Consolidate And Compete as a Global Lifestyle Brand
- Mar 14, 2016 Data: With Bilateral Air Services Agreement Approaching, Who Owns the Skies Over Mexico?
- Mar 4, 2016 Data: Spain and beyond - easyJet Market Penetration by Country
- Feb 14, 2016 Beyond Lima: Decoding Peru's Fragmented Visitor Base
- Feb 14, 2016 TRAVEL MARKETING ALERT: The GIFers are coming
- Feb 14, 2016 Apple Inc. Is Transforming Travel Through Maps, and Could Acquire Yelp in the Process
- Jan 28, 2016 Analysis: Twitter Moments and Content Curation, Good or Bad for Marketing?
- Jan 20, 2016 Instant Booking Is In The Water. Now What for TripAdvisor?
- Jan 5, 2016 Priceline + TripAdvisor: How Far Will This Go?
- Dec 10, 2015 From Sales to Marketing, A New Era For Europe's High Street
- Dec 6, 2015 Colombia's Travel Consumer: Where They Go, What They Buy, How They Pay
- Dec 4, 2015 Changing Lanes: Ground Transportation in Mexico
- Dec 4, 2015 Spain's Low Mobile Penetration Myth, Mobile-First in Every Market
- Nov 18, 2015 Why George Soros Likes Latin America's Hotel Sector
- Nov 14, 2015 Why Spanish OTA Atrápalo Pulled Out From Brazil (Hint: Not Just Economy)
- Nov 4, 2015 Airbnb LATAM Director Also Points to Grand Ambitions Beyond Homestays