Before the Double 11 event, Alibaba drastically reduced the price of the Tmall Elf X1 from its original $499 to just 99 yuan after a coupon—less than one-fifth of the original cost. This dramatic discount made the device an attractive option for early adopters, leading to a massive surge in sales within a short period. The success of this strategy surprised many in the smart speaker market, as it quickly pushed the product into the spotlight.

Industry experts suggest that such a move is not unusual. According to Xie Taoxia, CEO of Haizhi Smart, a voice technology company, Alibaba’s approach is a common tactic to gain market share. Similar strategies have been seen before, like when Xiaomi lowered its speaker price to 299 yuan, which helped reshape the industry landscape. Overall, the smart speaker market in China has always relied on big players to drive growth and awareness.

Previously, the domestic smart speaker market was still in its early stages. Many analysts believed that the Chinese market was still a year or two away from reaching millions in sales. However, with Alibaba’s aggressive promotions, the market has accelerated significantly. As one industry insider put it, traditional consumer electronics brands and tech startups may struggle to compete with the financial power and marketing strategies of internet giants.

Currently, the smart speaker market is crowded with both international and domestic options. Amazon’s Echo series starts at around 660 yuan, Google Home at about 860 yuan, while local products like Rokid Moonstone (1,399 yuan), Qingshui Speaker (999 yuan), Himalayan Xiaoya (999 yuan), and Xiaomi's Little Love Student (299 yuan) also offer competitive choices.

While Alibaba and Xiaomi are pushing the market forward with low prices, this strategy raises questions about long-term sustainability. A 99-yuan price tag means Alibaba likely isn’t making a profit on each unit sold. However, the goal is clear: to capture market share early, educate consumers, and build a large user base that can help improve future versions of the product.

Looking ahead, Xie Taoxia predicts that China’s smart speaker market could surpass 10 million units in 2018. However, some supply chain sources warn that Alibaba might face production challenges due to the high demand. Despite this, the impact of the Tmall Elf X1 on the market is undeniable—it has helped push the industry past a major milestone and toward greater maturity.

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