How to Sell on the new platform of Tmall Global ( merchant.tmall.hk ) and what are the opportunities for small and medium Brands?
Nowadays, there is a huge boom in online shopping in China. People surf on local platforms such as taobao.com and jd.com (not amazon.com or eBay.com) as Chinese sellers and buyers both prefer the mode of online trade, which tabao.com and jd.com can provide.
- Tmall Global has launched a set of new platform to help international small and medium companies manage their development into China in a more-effective way
Speaking at Tmall Global’s annual gathering, attended by representatives from over 1,000 brands, General Manager of Tmall Import & Export Alvin Liu said the Alibaba Group-owned site now offers an overseas fulfillment solution and an import program to support brands’ foray into China.
“We are constantly upgrading our services and tools we provide to merchants, regardless how big or small, so they can deepen their engagement with the Chinese consumers whose demand for imported products is expected to strengthen in the coming years
Tmall Global Flagship Store
How Tmall Became the Leader of Online Market in China?
According to the recent research data by Daxue team, one of the most popular and trustworthy Chinese online shopping platforms is Tmall.
- Tmall policy is based on customer-oriented concepts that make it a leader in the e-commerce market. Its trade model assumes that the seller must be a legal entity (an official manufacturer or a registered brand) offering their goods and services.
- To open an official store on Tmall platform, the legal entity needs to provide all appropriate documentation and certificates of quality to confirm reliability, genuineness and the real fact of the existence of the company or brand. This guarantees that all goods on Tmall are official and authentic.
- Tmall, is the largest e-commerce market, established a rule stating that an order must be delivered to the consumer within the next 72 hours after purchasing.
As the recent online survey shows, the Chinese online shopping market has currently 193 million shoppers; this number increased to over 350 million in 2015, generating a transaction flow of RMB 2.5 trillion. Tmall here is the key marketplace to attract Chinese consumer offering not only local Chinese brands but also worldwide known international companies, including P&G, Logitech, Adidas, Reebok, Rayban, Nokia, Philips, Samsung, Lenovo, and many others.
As mentioned before, The Chinese market of e-commerce is rapidly growing thus allowing new brands coming into the Chinese market. Tmall Global is a significant step for Alibaba in cross-border e-commerce that opens new opportunities for both buyers and sellers.
Tmall Global was officially launched on February 19, 2014. It’s mainly for international businesses to sell brand name goods directly to Chinese consumers. The goods on Tmall Global are mainly imported. Up to 2017, it has covered 68 countries and districts, with more than 3,700 kinds of products and 16,400 overseas brands. (source)
What Chinese Consumers Buy?
- Clothing, household items, and accessories are the main products favored by Chinese customers. Fast-fashion international brands such as Zara, Burberry, and Calvin Klein start their entry into China by opening Tmall Flagship Stores.
- Big name brands Burberry and Calvin Klein officially launched their Tmall flagship stores in 2014. Other American brands such as Apple, Microsoft, Beats, Bose, NBA Nike, Gap, Levi’s, Disney, Anna Sui, New Balance, and Estee Lauder have all launched their own Tmall Flagship Stores in China.
- Luxury imported cars such as Lamborghini and Mercedes have seen a 400 percent growth year-on-year.
- China also is fast becoming the biggest online market for wine, topping global internet sales ahead of more traditional wine-buying nations such as Brazil, the UK, and France.
Branding is the base of your Story in China
Branding is the key to success for the business, especially for the new business. For some foreign brands which are unable to open their own retail store in China, joining Tmall Global is a good marketplace to start with.
Tmall required a deposit between USD$ 8,000 to USD$ 25,000 depending on the store format. The e-commerce platform also charges an annual service fee, which varies according to the product category and could be between USD $5,000 or USD$ 10,000. However, marketers have the opportunity to avoid pay either half or the full-service fee if they reach Tmall’s predefined sales targets for the product sold. In addition, Tmall keeps 5 percent of the sales value as commission.
It is also crucial to gain a good e-reputation as Chinese consumers will only buy brands which have a good ranking.
Wechat has more than 1 billion active users every day. The social media platform is amazing with a lot of convenient features useful for brands and users.
Except for Wechat with its 1 billion active users every day, Weibo is also a great choice for gaining e-reputation for the business.
- Weibo is the second-most mass-used social networking site in China, with more than 50 million active users per day.
- The microblogging platform where people post comments and contents offers a strong community of potential customers to communicate with.
Localization is one more key to success for selling in China. That doesn’t just mean translating but understanding the unique Chinese culture. For example, in Western cultures, minimalism is a popular design aesthetic for websites, meanwhile in China digital storefronts look like supermarket flyers with the as more information as possible.
China’s E-commerce market is very strong, and it is still developing. Key growth drivers include continued economic expansion and consumption, as well as internet and mobile penetration (which bring new users). Consumers will slowly move from to higher user experience, quality and other factors which influence buying. The B2C marketplace is one of the fastest growing segments, and there will be always more companies desiring to get benefit of this space.