Tmall Global: Sell Your Products in China | Tenba Group

Tmall China (天猫) was launched in 2008 by the Alibaba Group as Taobao Mall. It is an online B2C platform (business to consumer), targeting consumers in ... Skiptocontent Alibaba’sTmallChinaandTmallGlobalaremajorecommerceplayersinChina.So,inthisarticlebyTenbaGroup,yourfavoriteChinaonlinemarketingcompany,werevealeverythingyouneedtoknowabouthowtosellyourproductsinChina.ThisarticlefocusesonTmallGlobal,butalsogivesyouanintroductiontootherCBECsolutionswithdifferentbenefits. Bynow,youknowthattheChinaecommercemarketisthelargestintheworldwithasalesvolumeof2trillionUSDperyear.Moreover,onlineretailcontinuestogrowrapidly. TableofcontentsTheCBECMarketinChinaandtheRoleofTmallGlobalSo,HowtoSellProductsOnlineinChinawithTmallGlobal?1.TmallChinaTmallGlobalTmallGlobal:TMGandTOFTmallStoresTmallOverseasFulfillment(TOF)TmallGlobal–TheTakeaway2a.JD.com&JDWorldwide2b.TaoBao2c.WeChatShop2d.DistributionModel2e.HybridModel(TenbaGroup)ChinaCBEC–TheTakeaway TheCBECMarketinChinaandtheRoleofTmallGlobal With1.4billionpeople,Chinaisthelargestcountryintheworldbypopulation.TheeconomyisexperiencingaboostinrecentyearswithaGDPgrowthof6%in2019.However,in2020,thetradewarwiththeUSandtheCoronaviruspandemicmayslowthisgrowthmomentarily. Still,Chineseconsumersareeuphorictobuyluxuriousimportedproductslikecosmetics,fashion,organicfood,andbabyproducts.Chineseshoppersloveforeigngoodsbecausetheyaregenerallyassociatedwithhigherqualityandstrictersafetystandards.Besides,aseverywhereintheworld,theseluxuriousproductsboosttheimageofthepersonowningthem. Andwheredotheyfindtheseproducts?Chinesewhodon’twanttobuyforeignproductsbytravelingabroadorbuythroughDaigou,chooseestablishedCBECplatforms.Infact,onlineshoppersintheMiddleKingdomsimplycan’tgetenoughofcross-bordercommerceplatforms. ThemostpopularonlinemarketplacesareTmallGlobal,Kaola,andREDtobuyhigh-qualityandluxuryforeignbrands.TheChineseCBECmarketcontinuestothrive,expectingtoexceedaretailsalesvalueof200billionUSDin2022. So,HowtoSellProductsOnlineinChinawithTmallGlobal? MoreandmoreinternationalbusinesseslookatpenetratingtheChinesemarketduetoitsenormouspotential.But,whatisthebestwaytodothat?ThisdependsonyourbudgetandobjectivefortheChinesemarket.Inthisarticle,wepresentyou TmallGlobalOtherPlatforms So,let’sgetstarted! 1.TmallChina TmallChina(天猫)waslaunchedin2008bytheAlibabaGroupasTaobaoMall.ItisanonlineB2Cplatform(businesstoconsumer),targetingconsumersinmainlandChina. Tmall.comisthelargestChineseB2Cretailwebsitewithagrossmerchandisevolumeofmorethan360millionUSDin2019.ThelargestcompetitorsareSuning,JD.com(Jingdong,formerly360buy),andMogujie. JustlikeonTaobaoMarketplace,Alibaba’sC2Cecommerceplatform,buyersandsellerscommunicatedirectlyonTmallChinathroughAliWangWang(阿里旺旺).Ithasbecomeahabitamongbuyersto“chat”onthisinstantmessengertoaskquestionsandbargainbeforethepurchase.AliPayisthepreferredpaymentsolution. TmallChina Today,TmallChinahasmorethan500millionmonthlyusers,whocanchoosefrommorethan70,000internationalandChinesebrandsontheplatformfrommorethan50,000merchants.Chineseconsumerslovetoshopforbrandedgoods.Fromfashionandaccessoriestotech,andfrombabyproductstofood.Anditmaysurpriseyoutoread,butTmallChinaisthethirdmostvisitedwebsiteintheworld!ButTmallChinaonlyacceptsbusinessesthathaveanofflinepresenceinChina. So,ifyouwanttosellproductsinChina asaninternationalbusinesswithoutanofflinepresenceinChinaorifyouwanttosellcruelty-freeproducts(thelawonanimaltestingasbeenliftedin2021*) thencross-borderecommerceisthewaytogoforyou.LetusintroduceyoutoTmallGlobal. *Untilearly2021,animaltestingwasrequiredbylawforcosmeticproductsimportedtoandsoldintheMiddleKingdom.Since1May2021,thislawhasbeenremoved.AnimaltestingisnolongerrequiredforgeneralcosmeticsimportedintoChina,aslongastheymeetcertainotherrequirementslikequalitycertificationandsafetyassessment.ThisopensnewavenuestosellanddistributecosmeticsinChinabeyondtheCBECmodel. TmallGlobal In2014,China’scommercegiant,Alibaba,launchedTmallGlobal.ItisthelargestChinesecross-borderecommerceplatformwithonethirdmarketshare.Currently,theyoffermorethan20,000brandsfrom77countries. ItisagreatmarketplaceforforeignbrandstoselldirectlytoChineseconsumers,andwithouthavingacompanyorphysicalpresenceinChina.Interestingly,amongthebiggestflagshipstoresonTmallGlobalareCostco(USwarehousechain)andDM(Germandrugstore). TmallGlobal:TMGandTOF So,foryourforeignbusiness,TmallGlobalisthewaytogofortheCBECtradefromtheworldtoChina.TherearetwowaysforforeignbrandstosellonTmallGlobal: TmallGlobalFlagshipStore(TMG):mostpopular,suitableforbiggerbrandsTmallOverseasFulfillment(TOF):suitablefornewandsmallerbrands However,TmallGlobaliscompetitivelyexpensive,andtheymayrejectproductsthatdon’tfittheirstrategy.Keepinmindthattheydon’tacceptbrandsthatareunknowninChina,eveniftheyarewell-knownabroad.Moreover,youmayevenloseyourdeposit. Infact,TmallGlobalnormallysendsaninvitationtobrandstheyseeasafitfortheirplatform.Therefore,buildingbrandawarenessintheMiddleKingdomisanimportantfirststepifyouwanttoexpandintoChina. TmallStores Thereare4shoptypestochoosefrom: Flagshipstore:requirestrademarkregistrationinHongKongFlagshipstore(Marketplace):requirestheclass35trademark(“ServiceMark”)inHongKongAuthorizedstore:requirestrademarkregistrationinHongKong(canbepending)Specialtystore:requiresevidenceofproductsource,shopnamemustnotinfringecopyright Thewholeprocessofsettingupastorecantake4-8weeks.Thesearethestepsforasmoothimplementation. DeterminerequirementsandresourcesSignTmallGlobal/AliPayagreementStoreDevelopmentSelectaTmallPartnerAgencyforstoremanagementPre-LaunchLaunch KeepinmindthatstoresonTmall.hktaketime,knowledge,andcommitmenttolaunchandmaintain.Besides,theoperationofaTmallGlobalshoprequiresaspecializedteam.Suchateamcaneitherbeemployedbythemerchantin-houseor,asinmostcases,ismanagedthroughacertifiedTmallGlobalpartneragency.Theymanagetheday-to-daybusinessesonbehalfoftheshopowner. TmallOverseasFulfillment(TOF) Fromautumn2019,TmallGlobaloffersTOF(TmallOverseasFulfillment).ThisisessentiallyaCBECconsignmentsolutionthatletsbrandssellasmallnumberofproductsonTmallGlobal. TmallGlobaltakescareofthewholefulfillmentprocesswiththelogisticsmanagedbytheirownwarehousesaroundtheworld,theso-calledAlibaba’sCainiao(菜鸟网络).Thisreducesthelogisticsandstoragecostsforsuppliers. Theonly“hurdle”totakeisthatbusinesseshavetogettheirproductsatoneoftheTOFcenters.Theyarelocated,forexample,inJapan,SouthKorea,andtheUS.TherearealsoplanstoexpandthemtoEurope. TOFasanewcollaborationmodelisperfectforbusinesses,whicharenewtotheMiddleKingdom,andwanttotargettheincreasingmiddle-classconsumerbase.TheycantesttheirproductsandmodifythemtothetasteofChineseconsumers. Thankstotheconsignmentmodel,Tmalltakescareofeverything,includingmarketing.Inturn,thismeansyouhavelesscontroloverthedetailsofyourproducts,forexample,positioningandcross-promotion. TmallGlobal–TheTakeaway TmallGlobalisadedicatedbrandstore,wheremillionsofChineseconsumersawait.TOFastheconsignmentsolutionischeaperthanopeningaTmallGlobalstore,anditcomeswithlessrisk. Tosumitup,TmallGlobalstoresaregreatforestablishedbigbrands.TOFisacleversolutionforsmallerbrandsauthorizingasmallerbudget. UntilrecentlythereusedtobeathirdoptionforinternationalbrandssellingonTmallGlobal:TmallDirectImport(TDI).Thiswasaspecializedstorefortop-sellinglifestyleproducts.However,thiswholesale(B2B2C)modelwheretheTDIteamboughtproductsfrombrands/suppliersandtookcareofeverything(productlisting,sales,marketing,delivery),hasnowbeendiscontinued. 2a.JD.com&JDWorldwide JD’smajorstakeholderisTencent(WeChat,QQ)sothatJDproductsarealsoshownonWeChatwhensearchingforproducts.JDWorldwide(JD.hk)isthecross-borderplatformofJD.com,justlikeTmallGlobalistheCBECplatformforTmallChina.AndduetoTencent’sinvestment,theJDplatformsuseWeChatPayinsteadofAliPay. ComparedtoTmallGlobal,theadvantageofJDWorldwideisthatitischeapertolaunchinternationalproducts.ButJDWorldwide,originallyfamousforelectronics,isalsosignificantlysmallerthanTmallGlobal. 2b.TaoBao Alibaba’sTaoBaoistheworld’slargestecommercewebsite.Themarketplacefeaturesmorethan1billionproducts,whichsellerscansellwithafixedprice(majority)orthroughanauction. TaoBaoisaC2Cplatformforsmallbusinessesandindividualentrepreneurs,whocanopenonlinestoresthatmainlytargetconsumersinmainlandChina,HongKong,Macau,andTaiwan.Thesellerstypicallyofferanexpressdeliveryservice,andbuyerscanassessthesellerswithcomments,complaints,andsoon. 2c.WeChatShop Withmorethan1billionmonthlyactiveusers,WeChatisChina’ssuper-appforliterallyeverything.AnativeWeChatstoreisamobileplatformthatconnectstothemenuofanofficialWeChataccount.Youcancustomizeyourcontent,layout,andprices.InthemenuofyourWeChataccount,youcanaddlinkstoyourshops,forexample,withanH5app,amini-program,oranexternalwebsite. The“one-click-payment”functionofWeChatPayallowsaquickandeasypaymentcheckoutiftheshopownerimplementedtheWeChatPaygateway.AsWeChatisbooming,moreandmorebusinessescreateWeChatstores. 2d.DistributionModel Theadvantageofthedistributionmodelisthatitisrelativelycheap,asyoudon’tneedtocreateyourownstore.Thethird-party,forexample,theDaigou,buystheproductsfromyouwholesaleandthensellsyourproductstotheChineseendconsumers(B2C).Alternatively,theDaigouusesthedropshippingmodel. Thisdistributionmodelcreatesbrandawareness.Buttheproductsarenotinyourownbrandedstore,soyouhavelessinfluenceandcontrol. 2e.HybridModel(TenbaGroup) Ahybridmodelis,forinstance,convertinganexternalwebshoplikeWooCommerceintoaWeChatmini-program.Thismini-programisthenlinked,forexample,toanofficialWeChataccount.Itthenisnolongerastand-aloneexternalshop. ThisisoneofTenbaGroup’sareasofexpertise–convertingfromaWooCommerceshop(WordPress)toaWeChatmini-program.Asaresult,yourproductsaleswillgothroughthebackendinWooCommerce,eventhoughyoupromotetheproductsonWeChat. Therefore,yourwholesalesandfulfillmentprocessiscentralized.ThisisthepreferredmethodforforeignbrandsbecausetheycankeeptheirexistingshopsystemwhileexpandingintotheChinesemarket. ChinaCBEC–TheTakeaway NowyouknowtheChinesecross-borderecommercelandscapeindetail.WetookadeepdiveintoTmallGlobalandlookedatwaystosellforeignproductsintheChinesemarketthroughvariousCBECchannelsanddistributionforms–fromyourownTmallstoretoTOF.Moreover,weanalyzedtheadvantagesanddisadvantagesofeachdistributionmodel. Biggerbrandswithmorebudgetbenefitfroma TmallGlobalstore JDWorldwidestore Smallerbrandswithalowerbudget,fortesting&fine-tuningproducts,cangofora TOFshop Taobaoshop WeChatshop Distributionmodel(e.g.Daigou) Brandswhoseekmorecontrolandpowerovertheirproductsandpositioningmaywanttolookatthe Hybridmodel(TenbaGroup) Tosumitup,enteringtheChinesemarketcanbechallengingforforeigncompanies,especiallywhensellingtheirproductsonline.Don’tworry!Wearehereforyou! Togetherwithourlong-timetrustednetwork,weorganizeTOFforyourbusiness,promoteyourbrandviaTmallGlobal,JDWorldwide,orTaobao.WealsosetupaWeChatshopforyou,connectyoutoDaigous,andcreateyourownhybridsolutionwithaWeChatmini-program.Guaranteedhassle-free! Besides,wealsomanageyourinternationaltrademarkregistration.Moreover,wecreateandimplementyoursuccessfulstrategyformarketinginChina,advertisinginChina,andBaiduSEO.So,makesuretocontactustoskyrocketyourbusinessinChina! 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