While Facebook might be the undisputed leader in social media, Alibaba is adding several social features to its marketplace mobile app “Taobao” to keep users hooked. In its Q1 2017 results call, Alibaba’s Chief Executive Daniel Zhang stated that social features are extending the visiting frequency of users, to the extent that Taobao is more like a social commerce app rather than a market place. As per our estimates, average active buyers and average spend per active buyer are two key metrics which drive the valuation of Alibaba’s most valuable segment, in our estimation, the China Retail Online Marketing segment. Taobao’s social features are attracting more users to the app and increasing their engagement, which is leading to higher user spend on the app. This strategy will drive revenues for Alibaba over the longer term, allowing the company to retain its competitive advantage.

from Forbes – Tech http://ift.tt/2c8HPXq
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