Thanks to Tmall Global, international brands have the chance to sell their products in the Chinese market without a physical presence in China.
Tmall Global will become the largest e-commerce platform in the world in a short period of time.
Tmall Global is the biggest B2C platform in China where many official brands have opened online stores to commercialize their products.
Tmall was created in 2008 as an e-commerce platform with the exclusive purpose to host official brands. This online marketplace allows brands to offer their products across the whole country of the Asian giant without the need of build physical stores.
Nowadays, Tmall has more than 50% market share of B2C business in China and in 2013 its sale revenues reached US$549 million. As a result of its popularity, a vast number of official brands have decided to open a store in Tmall and now the e-commerce platform has over 70.000 brands in 50.000 stores.
The policy of Tmall only accepts verified stores which is a very important aspect for shoppers because they have the guarantee that those products are real. The importance of this aspect is due to the huge number of fake products that Chinese shoppers can find across internet.
Tmall has an agreement called “TMall international genuine product guarantee plan” which guarantees that the products are real and obliges companies to compensate if the product is fake.
In order to open a store in Tmall Global, there are several requirements that companies have to fulfil.
- The company has to be registered in a Foreign Country.
- The value of the annual invoicing must be more than US$10 million and are necessary more than 2 years of experience in retailing.
- Famous B2C merchant and retailers, brand’s group and brand’s representatives will have priority in order to open a Tmall store.
- Tmall gives preference to products related with maternity, infant goods, health, apparel, accessories and footwear.
How to set-up a Tmall store:
- To open the store, companies need to apply for trademark in Chinese characters and get a certificate for trademark registration.
- It is required an approved business license in China.
- The description of the products have to be in Mandarin language.
- Stores have to include customer service and the live chat called ‘Wangwang’.
- Companies have 72 hours to ship the products to the buyers.
- Besides, is necessary a Chinese address in order to receive product returns.
Companies which satisfy the conditions have to:
- Send the whole required information and the product data to firstname.lastname@example.org
- Wait for the Tmall review, which takes around 10 working days.
- Create an international Alipay account.
- Signing the agreement with Tmall.
- Pay the security deposit which is between US$8,000 and US$25,000 depending on the store format.
- Pay the annual service fee which also varies according to the product category. The fee range is situated between US$5,000 or US$10,000.
- Register an account on Tmall.
- Fill out the store opening test where companies have to provide the products’ profile.
- Now, your store in Tmall is already open.
E-commerce in China has rapidly grew due different reasons as the economic development, the biggest disposable incomes, the internet penetration and the desire to purchase foreign items.
Tmall allows consumers to have access to a vast variety of products and brands that otherwise they couldn’t purchase.
Through Tmall, brands have the chance to sell their products to the whole Chinese population without the risks to open physical stores, therefore this e-commerce platform has become an easy and effective way to penetrate into the Chinese market.
If you are interested to be part of the Chinese market, don’t hesitate to contact us, we will improve your presence in China.