On September 23, China’s leading B2C E-commerce platform Tmall international announced its latest new investment policy to help international cross-border companies expand their business in the Chinese market. Tmall International’s new investment policy aims to facilitate companies’ entrance and provides international companies a lot of guidance & conveniences in terms of platform’s entry modes, entry rules and services, operations, as well as new brand incubation.
Tmall International offers a range of support measures to attract international merchant brands to move in.
- For new merchants, a 50% reduction in deposit
- Official agency commission waiver（ operational service for the first 3 months
- During the Double 11 shopping festival, merchants enjoy a 40% discount on the Speedy Payback Rate. (Speedy Payback is a service that helps merchants shorten their billing period and speed up their cash flow.)
- The platform will also provide support such as deposit waiver, cross-category operation and shop upgrades etc.
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The Tmall International E-commerce platform is also more open and efficient in terms of brand’s entrance permission and services. For example, Tmall International has widen merchant entry categories to attract promising consumption goods of great potential, such as second-hand luxury goods, medical services and hypoallergenic milk products etc. including:
- Deluxe and high-ended Skincare products
- Deluxe and high-ended SPA & body care products
- Customized health and nutrition set meal
- Imported whisky and wine
- Pet food, etc.
The China Tmall International E-commerce platform offers 4 entry modes for international cross-border merchants, including :
- opening brand’s E-store on the Tmall platform
2. selling brand’s products in Tmall self-operated E-store (no need to open brand’s E-store)
3. establishing cross-border brand station on Tmall ‘s ecosystem （able to enjoy Tmall’s all-around operation, transportation and management service, company only need to supply products）
4. Tmall Overseas Fulfillment.
Here are some details concerning these 4 different models on Tmall International:
- Opening brand’s E-store on the Tmall platform: international brands can establish their flagship shops and to better cultivate their brand image among consumers. Brands take care of product supply, transportation, and E-store’s operation etc. by themselves.
- Selling brand’s products in Tmall self-operated E-store: It is an efficient sales strategy； international brand relys on Tmall’s influence to sell their own products; Tmall takes care of product selection, purchase, sales, transportation, after-sales etc. This mode is conducive to the incubation of best-selling products. It is a suitable option for established , well-known international brands
- Establishing a cross-border brand station within Tmall ‘s ecosystem: The “cross-border brand station” is Tmall’s one-stop hosting operation, which is suitable for small and medium-sized brands to test the waters at low cost. International brands are able to enjoy Tmall’s all-around operation, transportation and management service, companies only need to supply products. It is suitable for medium/small size merchants
- Tmall Overseas Fulfillment. This new form of partnership allows overseas brands to place a small batch of products on Tmall International for trial sales before fully entering the Chinese market, and adjust the product categories based on market feedback to accurately capture Chinese consumer preferences. It is the most efficient, introducing non-standard products with a flexible supply chain of overseas warehouses. It is suitable for medium/small size merchants to touch new markets.
In China, cross-border e-commerce has become a major channel for consumers to purchase imported products. Over the past three years, imported cross-border e-commerce has maintained an annual growth rate of nearly 20% on average, becoming an important growth engine for China’s consumer market. In the past year, more than 6,000 new international brands have entered the Chinese market; Japan, Italy and the US are the Top 3 countries that have introduced the most new brands.
Tmall International continues to increase its import capacity, laying out 6 direct sourcing centers around the world, with over 1.7 million square meters of bonded warehouses and over 1,300 pathways . To date, Tmall International has attracted more than 39,000 overseas brands from more than 90 countries & regions around the world, covering more than 7,000 categories. 80% of Tmall International bonded warehouse lines support home delivery service, covering more than 250 cities across China.
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