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Sheji Ho ยท ยท 6 min read

With Taobao Xinxuan, Alibaba enters into private-label goods. Hereโ€™s what it means

On June 28, 2018, Alibaba announced the launch of Taobao Xinxuan (ๆท˜ๅฎๅฟƒ้€‰), which translates to โ€œTaobao Selected.โ€ After a year in alpha testing, the companyโ€™s new concept is finally available to the wider public.

Through the website or one of two physical stores in Hangzhou and Shanghai, users can shop for affordable quality lifestyle and functional daily necessity goods including home fragrances, smart power sockets, underwear, and sonic-control toothbrushes.

Rimowa?

According to TechNode, the recently opened store in Shanghai was raided and emptied by eager customers in a mere two hours.

What is Taobao Xinxuan?

Appearance wise, the Taobao Xinxuan concept will remind many of Japanese retailer Muji, whose clean and simplistic stores offer a wide range of quality and affordable clothing, stationery, bags, and even furniture.

Taobao Xinxuan store concept design

From a business model perspective, Taobao Xinxuan is actually more like Xiaomi, the smartphone-manufacturer-turned-global-electronics brand. Its manufacturer-to-consumer (M2C) approach and short supply chain allows the company to quickly go from the latest consumer insights, manufacturers, to create products and go-to-market in a few months.

Xiaomi flagship store in Shanghai

Xiaomi flagship store in Shanghai

Alibabaโ€™s new Trojan horse?

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Community Writer

Sheji Ho

Healthcare entrepreneur in Southeast Asia