Alibaba Converts Big Spenders Into Marketers

Chinese online retail giant Alibaba has culled together an interesting cadre of rogue marketers from a pool of its biggest spenders via its Alibaba Passport Program (APASS).

Alibaba debuted the APASS program two years ago to persuade its highest-spending shoppers to keep on spending — a necessary move as the Chinese economy deteriorates and Alibaba’s explosive growth begins to slow with it. (Though its most recent Singles’ Day sales broke records again, the rate of growth was half that of 2015’s.)

To qualify, APASS members must spend at least 100,000 CNY ($15,000) annually on its sites, though the company says typical APASS members spend more over 310,000 CNY ($45,000). APASS is described as a combination Facebook, Amazon Prime and Amex Black, and APASS members get all the usual perks associated with a rewards program — but they have to work for it.

If you consider posting on social media about your lavish trip to visit the Maserati store and an Italian vineyard (with Alibaba footing the bill, naturally) to be work. The online retail giant uses its APASS members as marketers. They’re rolled out to fancy events and sent on trips that are streamed on Alibaba’s Tmall app and video site Youku Tudou (which Alibaba Chairman Jack Ma acquired last year.)

The aforementioned Italian trip drew in 400,000 views and boosted sales. The luxury and splendor of it all may also have distracted consumers from accusations that Alibaba might profit on counterfeit merchandise through its discount site, Taobao.

There are currently just over 100,000 active APASS members. When they’re not shopping or traveling the world as marketing agents, they’re conversing on the APASS social media platform and talking up the company to anyone who will listen.

Given growing interest in JD.com in the region and Amazon Prime’s recent introduction across China, the APASS program, its members and their marketing presence could be what saves Alibaba from slowing down even more.