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Dec. 27 (NBD) -- Chinese food delivery platform Ele.me backed by Alibaba and video sharing website Bilibili jointly launched a new membership that allows users to pay about 16.5 yuan (2.4 U.S. dollars) to enjoy benefits of both sides and a 20-yuan (2.9-U.S. dollar) takeaway coupon every month.

The move follows Bilibili's strategic partnership with Taobao in content boosted e-commerce sales and the commercial operation of the video website's intellectual property last week. The two sides expect to form an ecosystem that combines each other's online and offline contents, products and users.

As Chinese users recognize the necessity of paying for better experience, the Internet sector recently embraced a fast growth of paid services.

Platforms in the field that are competing for more paid members need to offer diversified benefits, Wang Tianjin, analyst of data provider Analysys, told NBD, adding that quality contents and cheap price are key contributors for the rise of paid member.

Seen as a leading platform for young generation in China, Bilbili has nearly 100 million monthly active users, more than 82 percent of whom are Generation Z, and over 7,000 cultural circles. In an era when contents and traffic are highly valued, a platform with abundant quality contents and loyal members is sought after in the market.

Bullish on the website, Tencent invested a total of 317 million U.S. dollars in Bilibili via its industry fund. As of October 3, 2018, Tencent is the second largest shareholder of the Nasdaq-listed website, holding 12.27 percent stake. Early in 2015 and 2017, the tech behemoth also participated in series B and D financing rounds of Bilibili.

As a solution to stand out in the intensified competition, tech giants and e-commerce players are seeking not only integration of all channels, but also cross-industry collaboration.

This summer, Alibaba unveiled VIP membership for 88 yuan (12.8 U.S. dollars) through which users will become a member of its platforms including Tmall, Ele.me, Youku, Xiami Music, and Tao Piao Piao.

It is reported that annual active consumers on Alibaba's retail marketplaces in China have reached 601 million.

Another e-commerce titan JD.com teamed with streaming website iQiyi to include VIP service of the video website in JD Plus membership.

With blurred industrial boundaries, it will be increasingly difficult for an enterprise with core competitiveness in a single field to maintain presence in the market, Wang pointed out.

Developing membership with access to multiple platforms enables enterprises to lower cost for consumers, expand the number of paid users and improve users' login frequency, Wang explained.

Apart from bringing benefits to consumers, cooperation between players also put forward higher requirements for enterprises.

After users' habit of paying for services has been formed, the demands for more member benefits are surging.

Wang said China's Internet market almost hit the ceiling in terms of users, thus enhancing the viscosity of exiting users and tapping the value of high net worth clients by interconnecting membership systems could be an operation strategy for enterprises.

As for how giants attract more paid members in the long-term, Wang held that players can optimize the membership system by setting up different levels of membership.


Email: zhanglingxiao@nbd.com.cn

Editor: Zhang Lingxiao