The Alibaba Group controls more than 80% of the Chinese e-commerce market with its BC2 site Tmall and C2C site Taobao. But his market share might even be bigger with its recent launch of Tmall International.
Another B2C website, but designed for overseas businesses where they can directly sell their products to Chinese customers.
This new international platform provides overseas produced goods with an efficient delivery service with a 72-hour shipping and product return facilities. The brands on Tmall international will also provide direct customer service to online shoppers through Alitalk an instant messaging platform designed by Alibaba.
How to join?
More than 140 foreign companies from all around the world already chose to open an online shop on Tmall international. Among them are Bonjour, Strawberrynet, Etmall, Kenko and premium brands like Anna Sui and NYR. To join the new platform international brands have to pay $25,000 of deposit and a yearly fee. The amount of the fee will be determined by the type of goods sold by the merchant. There will also be service fee of around 5% collected per transaction.
Alibaba sees further
Tmall International is a subsidiary of Alibaba, part of the International B2C Department, recently created by the giant of the Chinese e-commerce. The new platform is part of Alibaba’s global shopping projects just like AliExpress and Taobao Overseas.
Tmall International is Alibaba’s answer to the will of Chinese online shoppers to purchase cheaper and better overseas produced goods especially when it comes to infant and maternal products or cosmetics and luxury goods. This tendency is called the “Daigou industry” which literally means buying overseas. The Daigou is a fast paced growing market which surpassed 70 billion yuan ($11.49 billion) in 2013, according to Alibaba.
With the launch of Tmall international Alibaba answers the new demands of Chinese online shoppers while increasing his possibilities of becoming global and his market share.
How could your brand benefit from this?
Meeting Chinese consumers demand in that regards allow any foreign company to reach them fairly easily using Alibaba’s Tmall International. It is definitely a service worth using if your company is big enough to make it cost effective. To make it easier you need a proper advertisement campaign to make sure that Chinese consumers go to buy your products. Given how heavily Chinese rely on digital, you should do the same.
We can provide you with solutions on how to reach your core customers
To go further:
- How to do Marketing in China?
- Tmall international
- Alibaba VS Amazon Comparaison of two E-commerce leaders