Do you long to expand your China business? This article will discuss the possibilities for your company to increase sales in China via Tmall Global.
Tmall Global vs Tmall Global
Despite the fragmentation of China’s cross-border eCommerce market, it is almost impossible not to mention Alibaba and JingDong. Tmall is China’s largest online marketplace. Alibaba Group Holding Ltd. is the owner. Tmall boasts more than 70,000 brands and has over 500,000,000 buyers. Businesses can retail or wholesale straight to millions in China through the largest B2C platform. Tmall is an open marketplace that allows you to have a storefront. It also gives you direct reach to millions of shoppers. A store on Tmall is similar to owning a B2C eCommerce website.
To sell your products via regular B2C eCommerce, you must import the products from overseas. This requires a Chinese legal entity. A Chinese company must also be able to open a store through a Chinese B2C eCommerce platform like Tmall. Cross-border eCommerce is a relatively accessible entry strategy for foreign businesses looking to reach Chinese consumers online.
Cross-border eCommerce is exempt from compliance and taxes. Products on the “Positive” lists for cross-border commerce contain 1,321 product types. These products can be imported into bonded warehouse areas or overseas distribution centers linked to Chinese customs without the need for an import permit or certificate. A product that falls within the positive list will be eligible for a preferential tax rate of 11.9%. At the September 2017 State Council Executive Meeting, a new round of policy extensions was announced. Products on the Positive Lists are exempted from China’s import and product standards until December 31, 2018. If you are curious about whether your product is on a Positive List, please visit TMO’s website, “Positive List Assistant.”
Tmall launched Tmall Global on February 19, 2014. This allows domestic Chinese consumers to import products from abroad through Tmall Global. Here is a summary of the major differences between Tmall Global and Tmall Global.
Tmall Global was created to assist overseas vendors in capturing the growing appetite of Chinese consumers for higher-quality imported products. Tmall Global announced on March 21, 2018 that it would open six new procurement centers worldwide in order to achieve its goals. These centers will be located in Japan, South Korea, and Hong Kong, as well as North America, Europe, and Oceania. This is a further sign of Alibaba Group’s commitment to closing the gap between China’s customers and international brands.
Tmall Global is the country’s most popular cross-border eCommerce platform. It has a 36.8% market share and more than 5,400 international brands. These are either displayed in independent shopfronts (stores), or in particular pavilions that combine products from different countries on one page. The Holland Pavilion is an example of this.
Tmall Global leverages Alibaba’s extensive consumer analytics to provide overseas vendors insight into Chinese shoppers’ shopping habits and preferences. Jet Jing, President of Tmall, stated that this year Tmall Global is committed to providing more customized and personalized solutions for overseas clients so they can get faster and more direct assistance through the platform. This will allow them to accelerate growth. He said that such information could be more helpful for small and medium-sized companies to gain access to China.
Tmall Global follows a complicated merchant workflow, from order to delivery. Tmall Global, like its domestic B2C platform Tmall, gives foreign merchants full control over their storefront design. It still uses its complicated online mall structure to provide security and flexibility for its customers.
Tmall Global is open to companies that are registered outside China. Tmall Global only hires the best overseas merchants for high-end Chinese customers. To be considered for Tmall Global, they must:
- Register a corporate entity outside mainland China.
- Have the required qualifications for trade and retail in another country.
- You can be the brand owner, an authorized distributor agency, or possess the brand purchase coupon.
- Be able to provide the necessary stock certificates.
- Be able to purchase authentic products.
Tmall Global targets companies that have been in business for more than two years and which have annual sales exceeding 10 million USD.
Foreign merchants must also comply with Chinese consumer laws. These processes can be assisted by Tmall Global’s Third-Party service providers. However, the following must be provided for your customers.
- Commodities: Products that were originally manufactured or sold overseas must be authentic and accompanied by a certificate. Products must meet the requirements of Tmall Global security and for customers in China.
- Website and Labelling: Product descriptions, as well as labels, must be in Chinese. Tmall recommends that Chinese Alitalk customer support be used for Chinese language customer service.
- Logistics: Your order must be shipped within 120 hours. They must also be delivered to consumers within mainland China by personal parcels or from China’s bonded storage.
- After-Sale Service: Suppliers need to set up locations to handle returns in Hong Kong, Taiwan, and mainland China if they sell commodities there.