Tmall is committed to worldwide expansion
Tmall plans to open six new procurement centers around the world to help foreign sellers attract the interest of Chinese consumers to new and better quality imported products. The announcement was made by Tmall’s president, Jet Jing.
The centers will be established in Japan, South Korea, and Hong Kong, as well as in the regions of North America, Europe and Oceania, said Jing speaking at the International Global Partners Summit Tmall Global 2018 held in Hangzhou on Wednesday. He did not reveal a timeline for execution.
Launched in 2014, Tmall Global is the Tmall channel dedicated to cross-border e-commerce. The platform currently controls almost a quarter of the market, making it one of the largest and most complete cross-border B2C online markets for China. The latest move underscores Alibaba’s ambitions to further internationalize itself, and its commitment to closing the gap between Chinese and international consumers.
Leveraging Alibaba’s broad consumer analysis set, Tmall Global offers foreign vendors insights into Chinese consumer behavior and buying preferences, giving sellers more clarity and confidence in choosing what to sell in China, Jing said.
Moreover, this information helps the various governments to better assist local sellers, especially small and medium-sized businesses, to break into China. “This year we are committed to offering our merchants overseas tailor-made solutions, so they can receive faster and more direct support from the platform, enabling them to accelerate growth in China,” added Jing.
China is the second largest consumer market in the world, particularly growing in the e-commerce sector
China is currently the second largest consumer market in the world, according to the United States, according to data provided by Boston Consulting. The consulting firm notes that China will see nearly US$2 billion worth of new consumption by 2021, which means that the country will continue to be one of the main destinations for consumer companies in the near future.
In particular, China projects cross-border e-commerce trade to more than double RMB 620 billion (US$98 billion) in gross goods by 2019, starting at RMB 305.5 billion in 2016.
Tmall Global, which already offers over 18,000 brands from 74 countries and regions, is committed to attracting even more companies and suppliers from around the world to sell products in China in the coming year, is what the Director-General of Tmall, Alvin Liu.
New Retail, which leverages new technologies to unify online and offline shopping, will serve as an important driver for fueling this growth, allowing sellers to interact with their customers in both industries, he said.
“Our goal is to offer Chinese consumers the best shopping experience. So we will only select the best and most popular brands to bring to China,” said Liu, adding that the platform also aims to increase the assortment of product categories and items on the platform.
“We have to discover new categories and find new products so that Chinese consumers can find the most suitable items for their needs,” he said, adding that Tmall Global plans to increase its consumer base to 200 million buyers in the next three years.
Improving product traceability to improve retail experience and increase sales
To achieve these objectives, Tmall Global is committed to improving the traceability of the items sold on the platform. Using blockchain technology, consumers will be able to easily track their orders at every stage of the delivery process, starting from the factory in the country of origin.
Secondly, the platform seeks to accelerate the expansion of overseas fulfillment centers, so that small foreign brands can introduce their products to the Chinese market with greater ease. Based on customer feedback and transaction information, these brands will be able to adapt their export strategy to better meet the demands of Chinese consumers, if necessary.
The platform will also increase the use of customs warehouses, where imported goods can be stored without import duties until the items are shipped, to reduce the cost for sellers wishing to enter the Chinese market.
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