In order to tap into the Chinese luxury consumer market, many brands are choosing to set up shop on Tmall‘s Luxury Pavillon. Why is that? What makes Tmall Luxury Pavilion so special for high-end brands? Here we take a closer look at the luxury pavilion by Tmall and its unique advantages for luxury players in China
What Is Tmall Luxury Pavillon?
Tmall Luxury Pavillion is a luxury platform launched by Alibaba in 2017 with the goal of connecting the world’s luxurious brands to Chinese shoppers. The platform is a great success, with over 200 high-end and luxury brands currently signed up to the site and growing numbers of Chinese consumers using it to purchase luxury items.
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The platform offers a unique space where brands can customize their online stores and provide consumers with a new way of online shopping. They also have live streaming, which is a very popular feature in China, to show off products and engage with potential customers.
What Are the Implications?
For brands, Tmall Luxury Pavillon offers a great opportunity to increase their sales in China. The platform is exclusive and you must meet certain requirements to be able to sell your products on it. Therefore brands who do join it get a lot of positive attention from both Alibaba and Chinese consumers.
For shoppers, Tmall Luxury Pavillon is a more trustworthy site for purchasing luxury items.
Tmall Luxury Pavilion has been created with luxury brands and luxury shoppers in mind. It offers brands marketing and communication features adapted to their products.
What Brands Are in Tmall Luxury Pavillon?
With the growing popularity of Tmall Luxury Pavillion on Chinese luxury consumers’ radar, more and more brands are interested in being a part of it.
Some top luxury brands that have a presence on Tmall Luxury Pavillon include:
- Ralph Lauren
- Hugo Boss
- Salvatore Ferragamo
- and so on
With these brands trusting Tmall Luxury Pavillion, it is not surprising to see more luxury names joining the platform as time goes by, especially considering that Chinese consumers are getting more and more interested in shopping for luxury brands online.
Tmall Luxury Pavillion is a great channel for these brands to reach the Chinese market. With an increasing number of foreign brands going multi-channel, this is one of the channels that they cannot afford to miss out on.
How Can You Tell if Your Brand Is Eligible for Tmall Luxury Pavillon and How Do You Apply?
Tmall Luxury Pavillion, unlike its mainstream counterparts (Tmall Classic and Tmall Global), is not open to all brands. It is an exclusive platform aimed at luxury brands and is only open to those that meet the requirements. Your brand must already have an existing presence in China and have a good reputation. It must also be an authentic luxury brand with high-quality products.
The application process is fairly simple and straightforward but it can be time-consuming. You can then contact the Tmall Luxury division if you feel like your brand meets the requirements.
Negotiations and a brand presentation will then take place where both you and the platform will decide if it’s a good fit. If all goes well, your brand will be accepted onto the platform and you can begin setting up your store.
The Benefits of Being in Tmall Luxury Pavillon
As an inclusive and trusted platform for luxury brands, Tmall Luxury Pavillon is perfect for companies that are looking to reach and engage with high-end Chinese consumers.
Here are some of the benefits of being on the Tmall Luxury Pavillon:
- You have 100% control of your brand: By joining Luxury Pavillion, you have full control over how you want your brand and products to be presented. The platform gives you the freedom to customize your shop. If you want your audience to experience the same vibe when buying in your brick-and-mortar store, Tmall Luxury Pavillion gives you the ability to do so. Moreover, if you have an existing marketing and development team, it will be beneficial as the platform allows you to fully handle your strategies and activities.
- Boosts exclusive product sales: Exclusive products and limited editions are one of the most effective ways to boost your sales. And China is a country filled with consumers who love to have the latest and trendiest products. In fact, back in 2017, a Burberry limited editor bag was sold out immediately just within the first 10 minutes of release.
- Get the benefits of live streaming: The Chinese are avid users of live streaming. Back in 2020, it was recorded that at least one live streaming session is watched by more than 613 million people in China. With live streaming, you are to see a better and higher ROI for your product sales. The engagement and audience attachment are also personalized since you get to see the interactions in real-time.
- Attract Chinese shoppers: Aside from obvious audience numbers in China, every Chinese tends to use e-commerce sites rather than going to retail stores. On average, the Chinese spend at least 6 hours a day using their phone for different purposes, and a good portion of that time is dedicated to online shopping.
Another benefit worth mentioning is that Tmall Luxury Pavillion is one of the most viewed e-commerce platforms in China. This is due to its reputation for housing a lot of big brands and luxury items. If your company plans on targeting high-end buyers, Tmall may be the best platform to do so.
The Future of Luxury Brands in China and What This Means for Foreign Brands
The Chinese market is a strict but profitable place for brands to enter. Unlike before, having an access to online shoppers has made it easier for foreign brands to establish themselves in the country. With the power of e-commerce and social media, brands have more power to reach Chinese consumers which is a promising opportunity for companies in the future.
The demand for luxury goods in China is expected to exponentially as multiple platforms that carry these goods are already rising. With an exclusive space where you can buy luxury items, Chinese consumers are becoming more comfortable as they see how platforms like Tmall Luxury Pavillion are taking care of counterfeits and ensuring the authenticity of their products.
For foreign brands, it is an opportunity to widen their customer base as well as to increase their revenues. And what’s the best thing to do than to enter the Chinese market? On a global scale, China’s share in the luxury goods market is 8.9% which is the second-largest in the world.
In addition, since Chinese consumers have a large spending power when it comes to luxury goods, this trend is likely to continue upwards, especially with how accessible these purchases are now through online platforms like Tmall Luxury Pavillion.
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