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Alibaba, RedNote in Tie-Up as China E-Commerce Competition Intensifies

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The well-known information platform RedNote and Chinese e-commerce behemoth Alibaba are collaborating to enable RedNote users to shop on Alibaba's Taobao marketplace by clicking on product links.

The action effectively formalizes an app-to-app shopping relationship between Alibaba's e-commerce infrastructure and RedNote, which is referred to as Xiaohongshu in China and frequently likened to Instagram.

The expansion of the strategic alliance between Alibaba and RedNote coincides with China's e-commerce behemoths competing for market share on several fronts in the face of declining consumer confidence, which results in nearly continual incentives to draw customers and fuels wider deflationary pressures.

Recently, the online battlefield has moved to the "instant retail" sector, which started with food delivery services before growing to include electronics and clothing that can be delivered in an hour.

Food delivery behemoth Meituan has long held a dominant position in China's immediate retail business, with Alibaba's Ele.me coming in second.

 

Another massive e-commerce company, JD.com, started adding eateries to its own meal delivery service, JD Takeaway, in February.

Alibaba has improved Taobao's rapid retail capabilities in recent weeks. With the aid of Ele.me's army of couriers, purchases made through the Taobao app's "instant commerce" gateway are delivered within an hour.

Alibaba and JD.com have made significant investments to subsidize instant retail sales on their platforms in an effort to draw users.

In April, JD.com announced that it would invest "over 10 billion yuan" ($1.38 billion) in instant retail over the course of the year. Alibaba claimed to have completed 10 million instant retail orders in just five days on Monday.

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With the initial trial program concentrating on fast-moving consumer goods and healthcare products, both of which are expanding instant retail categories, RedNote and Taobao's app-to-app shopping feature complements Alibaba's drive for instant retail growth.

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