Tmall, the e-commerce platform owned by Alibaba Group, has launched a “duty free” shop for travellers

China goes further in the world of e-commerce

 

Duty free

The duty free shop is not affected by the additonal taxes of the country in which it is located, they do not increase the cost of the product being sold. The stores are most often set up in international zones such as airports or seaports.

Tmall announced that they would launch a store of “duty free” products for travellers who have booked their plane tickets. It has agreements with Shilla Group and King Power, duty free giants in South Korea and Thailand. This strategic move allows Tmall to increase it’s more market share and establish itself in an innovative new market.

 

Tmall’s strategy

The aim is that you do not lose time when shopping during your travels in airports. Alibaba set up this project to improve the level of convenience for travellers who have booked their flights online. Tmall will work with many groups and franchises around the world for the rights to discounts of 10-20% for people shopping in their duty free store.

 

How it operates

After booking flights bound for Thailand or South Korea, customers can buy merchandise “duty free” on Tmall. At the end of their journeys, passengers can simply pick up their goods in airport shops.

Tmall is currently in contact with many groups and popular domestic and international franchises in Europe and the United States, these are the two most popular destinations for Chinese tourists.

 

With such a gap in this kind of duty free market, Tmall has opened up a new era in e-commerce for tourism by facilitating their purchases in this way. Tmalls logic is that initially customers come looking for items in airport shops, in the future, travelers could order their items at home with perhaps late night, offline (physical) shops staying open at airports to meet the demand for duty free.

 

 

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