Jeans at 14 cents, Alibaba's plan to relaunch its firm Taote

Alibaba is the great e-commerce giant in China thanks, among other things, to its powerful subsidiaries such as AliExpress. Now, the company founded by Jack Ma wants to revolutionize the retail segment forever. The idea is to connect, through its subsidiary Taote, clothing factories with consumers directly. In this way it eliminates intermediaries and brands. This represents a great saving for the consumer and a threat for the brands.

In fact, during the Asian online trade week, whose day is November 11, they have launched a campaign that offers jeans for 1 yuan (14 euro cents) with free shipping, although the promotion is only available to buyers from the country. Asian. However, it is undoubtedly a letter of introduction that threatens the rest of the competitors and that seeks to unseat Shein, which has grown exponentially offering cheap clothes without physical stores.

The truth is that Taote has existed since 2018. However, until a few months ago it was only a small part of the group to connect factories with stores. Now they have decided to connect the factories with the final customer directly. Without counting the momentum of recent weeks, they already have 200 million users and are running as an important leg of Alibaba, which is fighting so that its rival Pinduoduo does not take the throne from it in its own country.

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factories earn more

The factories have seen in this bet a great seam since, in addition to earning more than selling to large retailers, they also get rid of the stock that they have not sold. But not only that. For users, the savings are remarkable, since you only have to see that you can buy jeans for only 14 cents. But this is not all either, since they will not only sell textile products, but also others such as aesthetic or hygiene and cleaning, as well as electronics. In this way, Alibaba could consolidate itself as the king of ultra low cost.

Of course, this business model of connecting factories with end customers directly is currently only available in Asia. In Europe and the United States it has not been tested, although it is possible that it will arrive in the near future. In the same way as the Teote application, which is a revolution in the online commerce segment.