Tmall Global, is one of the most popular cross-border e-commerce (CBEC) to emerge from China. In the last quarter of 2017, Tmall ranked the first in the CBEC market with a 27.6% market share. It’s competitors Kaola.com and JD Worldwide ranked second and third respectively. The Top three CBEC’s market share has exceeded 60% of the whole market. In 2018, Tmall Global is still a leading platform.
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Tmall (previously known as Taobao Mall) is a Chinese-language website for business-to-consumer (B2C) online retail, spun off from Taobao, operated in China by Alibaba Group. It is a platform for Chinese consumers to buy domestic goods. Alibaba Group has taken a step further with Tmall Global in cross-border e-commerce. It was officially launched on February 19, 2014. The main function is for international businesses to sell brand name goods directly to Chinese consumers. The majority of goods on Tmall Global are imported. Up to 2017, it has covered 68 countries and districts, with more than 3,700 kinds of products and 16,400 overseas brands.
What’s happening in the market?
With China’s rapid development and urbanisation, more Chinese are able to buy more expensive goods. Although displaying their purchasing power is an incentive on its own, product quality is of importance. Customers are eager for product information and when they have it and are satisfied with a platform, they buy more often. In 2017, more than 40% of consumers bought from the platform 3 or more times and 17% bought from it more than five times.
Consumers prefer to buy health care products and baby food in the United States, Australia, and Germany. Japan and South Korea are top choices for skincare products. Beauty skin care products are becoming the main consumption objects, accounting for 30 percent of Tmall Global’s total sales. Among them, Skin Care and Colour Cosmetics products are the highest sales products under this category.
The number of consumers and purchase frequency of Tmall has increased 3 times in 2017, since 2015. The post 90’s generation is the main force of sales growth of Tmall Global as well as many small countries, as they are more open to trying new things.
Tmall Global platform
All the companies in Tmall Global are corporate entitles outside mainland China, with overseas retail qualification. The goods sold on Tmall Global are produced initially or sold overseas and imported legally. All Tmall Global stores have Chinese inquiry service and after-sales services available. Domestic consumers can use Alipay or other methods that can be used on the domestic platform, Taobao, to buy goods on Tmall Global. The strategy of Tmall Global is to be international and attract more global brands.
• The consequence of selling imported goods is that most products on Tmall Global are typically more expensive; however Tmall customers are accustomed to and willing to pay these higher prices.
• Chinese value timely delivery and therefore logistics is an important factor. For logistics distribution, Tmall Global requires the merchant to complete the delivery within 120 hours and for the product to arrive within 14 working days. Logistics information must be trackable throughout the length of the process.
Solutions to help merge into the market
For some foreign brands which are unable to open their own retail store in China, joining Tmall Global is a good way to reach their target, Chinese customer. Tmall Global invites brands of their own volition to enter the Tmall Global marketplace. If you are interested in opening a Tmall Global store you’ll need to reach out to them directly to bring your brand/store to their attention. While they are constantly searching for new vendors, the world is a large place and getting in contact with them can bring your brand to their attention and give you a chance to receive an invitation to the platform, and enter the Chinese market.
Along with guiding you along this process, we are also able to make your brand known in China. It means nothing to be on an e-commerce platform if no one knows about your brand.
• BUILD A STRONG E-REPUTATION
In China, brand reputation is an important criteria. You have to do everything to always have a good image alongside Chinese customers. If you lose your reputation, you will lose everything.
You need to make sure that you get good comments for your spirit brand on forums, social media and other websites. Chinese consumers only trust brands that have good comments and recommendations from friends or family and on media platforms. Don’t hesitate to engage our digital marketing agency that can help you to keep a good image and avoid all bad comments about your brand.
• KOL TO PROMOTE YOUR BRAND
To gain in visibility and e-reputation, it is crucial to encourage a positive word-of-mouth. KOL can help you.
The Key Opinion Leaders (KOL) are social media users who succeeded to make a lot of traffic on their accounts and became famous. Chinese consumers idolize KOLs, trust them more than brands. Some KOLs have some millions of fans. They are really good to influence mass population. You can influence spirits lovers using KOLs as intermediaries. Through them you are able to reach your target group. In other words, intermediaries can be a great asset in selling your imported spirits to Chinese consumers.
• LEAD GENERATION PROFESSIONALS
We are professionals of the lead generation. To be effective in your lead generation, you need first to develop a good e-reputation. Invest in online advertising and create quality content will help you developing your e-reputation. Finally, measure results to improve your performances.
We are lead generation experienced and we apply it to our agency. We get an average of 350 leads per month (March 2018) by applying the method we offer to companies that use our services.
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We are international team, here to help you developing your business in China. We understand the Chinese consumers: their needs and habits. We also understand the foreign brands’ difficulties when they tried to enter the Chinese market.