Mike Lyons uses Taobao's evolution to show how product teams decide to persevere, pivot, or stop. Taobao launched in 2003 to connect buyers and sellers, then pivoted to support micro-entrepreneurs, and spawned Tmall in 2008 for brands, which hit 877 million monthly active users by 2023. The key: observe real user behavior, run small experiments, and use evidence to keep, reshape, or cut features.
May 29, 2025.
2003.
2008.
877 million monthly active users.
Eric Ries said there's no bigger destroyer of creative potential than the misguided decision to persevere. He also noted that most entrepreneurs who pivot wish they'd done so sooner. But how do you know when to keep going versus when to change direction or even stop entirely? Let me tell you a story about one of the most successful pivots in e commerce history by a company you may never have heard of. Taobao. It's part of the Alibaba Group. It's China's largest online shopping website. Back in 2003, Taobao launched in China with a clear mission. Connecting online buyers and sellers in a market where trust was low and basic infrastructure was missing. They started by building trust through a two way review system and creating the missing infrastructure for payments and logistics. But as they watched how people use their platform, they noticed something interesting. Their sellers weren't just casual users. They were becoming small business owners. Rather than sticking to their original consumer to consumer focus, they pivoted their platform to support these emerging micro entrepreneurs. So they added tools and services that could help these entrepreneurs succeed. Okay. Then in 2008, they spotted a different opportunity. All of a sudden, big brands wanted access to their massive customer base. Well, instead of forcing these brands into their existing platform, they created something entirely new. Tmall. A separate marketplace just for established companies. Now, you might think that was a risky move. I mean, they had a working platform, they had a plan, but they understood something fundamental about product development. Just because something's on your backlog doesn't mean it needs to be delivered. What matters is the value you're creating, not the features you're building. By 2023, Tmall had grown to 877 million monthly active users. Well, this is a case study that illustrates that successful products often look very different from their initial plans. And that's not only okay, it's what we want. Now, I've attached the Taobao case study as a reference for you below. Check it out when you have a chance. So how will you know when to persevere, when to pivot, and when to stop? Well, here's what I tell product Watch what's actually happening with your product, not what you think should be happening. You persevere when the evidence shows you're on the right track. Let's go back to the task flow example. Imagine you're seeing steady growth in those 10 to 50 person marketing agencies and your core features. They're getting solid usage. And if your feedback is mostly about enhancing existing capabilities, well That's a pretty clear signal to persevere. And you want to pivot when you discover maybe there's a different way to solve users problems.
Pivot. Pivot, Pivot. Shut up. Shut up. Shut up.
As taskflow's product owner, you might notice something unexpected in how marketing agencies use the platform. They're not just logging tasks. They're planning blog posts and social media campaigns and client deliverables. Okay, well that problem isn't just about managing to do lists. It's about content planning and delivery. Well, that's your signal to consider a pivot and reshape task flow into a specialized content production and delivery tool. And sometimes you just need to stop. Maybe it's those AI generated task estimates. They seem super important at first, but they're barely being used. And worse, they're causing confusion. Well, that's when you consider stopping. Even if those features are already on your backlog and on your roadmap, if the evidence shows that they're not going to add real value, cut it. The key is to run small experiments and measure the real results. This is exactly what the Evolve step is all about. The results of the experiments that we ran in the test step, combined with user feedback, should guide your way forward. This approach lets you fail fast, learn quickly, and adjust your course before investing too much time in the wrong direction. This is why your product backlog is not set in stone, just like the value proposition canvas. It's a living document and it should change based on what you learn. The goal's never been to empty your backlog. No, it's to solve problems and create value. Sometimes that means continue on your current path. Sometimes it means taking a different route. And sometimes it means having the courage to stop and try something completely new. That's the art of product development. Success isn't measured by the number of features you ship. It's measured by the problems you solve. Stay focused on that and the right path will become clear.
