In principle, the brand flagship store can only sell commodities under its corresponding brand; If it is a distributor brand it is able to sell products of several brands under its name. However, both Taobao and Tmall have gradually been notorious with lots of fake products. The Dragon Social team always stays up-to-date. “Tmall promises to sell ‘authentic brand with a guarantee’ on its portal page and charges each shop 10,000 yuan as deposit every year for the certification mark. Tmall Global does not authorize any institution as the agency for the recruitment of merchants temporarily. Why Tmall Global? • Sell-Out Rate Dragon Social offers revolutionarily simple and effective social media marketing services to international companies. Cainiao consolidates orders from different brands. It is important to note that each category and industry has different metrics, the following is a listing of some general considerations: Since then, more national pavilions have appeared on Tmall Global one after another. • Increase the long tail product sales (to be x% of total GMV) } The goods must directly come from the store brand trademark holder. To open a flagship store as a brand owner on the Tmall Global platform, you need to provide a trademark registration certificate for your brand. For a foreign brand to operate on Tmall, you will need a Chinese legal entity, a Chinese trademark, a Chinese corporate bank account, governmental product approvals, and a warehouse and logistics within China. Tmall Global runs its store and capable to direct importing products from brands/suppliers and sold the products to consumers. This is necessary to avoid the problems associated with its squatting by Chinese companies, which can then stop the shipment of goods or even its sale to China. By using CosmeticsBridge, you accept our. They must only sell products within their designated category. These are considered the most popular type of Tmall Global store. If you wish to gain business from the domestic market via Tmall, you will need to have the business registration, otherwise you can only consider Tmall Global and trade on the platform cross border. This is a consignment model where Cainiao picks, packs, labels, and ships the goods once consumers place an order. Brands ship goods directly from country of origin to the consumer. Tmall Global only allows overseas brands to list their products on the platform. The brand will have to be represented by the owner of the store, or a representative of the brand. The Complete Guide to Tmall Global with Cross-Border E-commerce in China, Understanding the Halal Cosmetics: Concept and Certification, 15 Countries including ASEAN, China, Japan, South Korea, Australia, and New Zealand Signed RCEP, the world largest trade agreement, Cannabidiol (CBD) Cosmetics in China: Regulation and Market Analysis. This site uses cookies to provide you with a great user experience. This category only includes cookies that ensures basic functionalities and security features of the website. In 2017, the number of these two generations is nearly 50% in Tmall Global, with a  40% consumption amount. Young generations become the new force of Tmall Global. The amount of annual fee is based on A-level categories and it is divided into two rates: RMB 30,000 and RMB 60,000. And as the COVID-19 pandemic stirs the industry into further digitalization, global luxury houses are now resorting to e-commerce more than ever. If Merchant is a brand owner, they shall provide the trademark registration certificate for their products. In the Flagship Mel, vendors build their branding and marketing by introducing their brand and product variety. In response to the country ’s large import strategy and meeting the growing user demand, Tmall Global announced that it will continue to increase investment to achieve import coverage in more than 120 countries and regions within 5 years Commodities expanded from 4000 categories to more than 8000 categories. If consumers insist on returning the goods, they have to undertake a considerable amount of delivery and tax fee. For Logistics Distribution, Tmall Global requires the merchant to complete the delivery within 120 hours and for the product to arrive within 14 working days. Tmall Global purchases from brands/suppliers directly. All Tmall Global shops are equipped with Chinese inquiry service and after-sales services. Any merchant operating on Tmall Global must pay a security deposit. E-mail. While this is their official policy, if you are interested in opening a Tmall Global store you’ll need to reach out to them directly to bring your brand/store to their attention. Remote Merchants have 3 distinct conceivable outcomes to open a store on Tmall Global. ), online B2C website brand trademark owners, or entities with direct first-level authorization from the trademark owners on Tmall Global. Tmall.com is strictly B2C, so everything that falls into the B2B category goes away. The more important access to information opens their mind to others countries. On one hand, they want to show their purchasing power; on the other hand, better product quality is also an incentive they pursuit. { Tmall is an e-commerce platform for Chinese and international businesses to sell goods to consumers in Mainland China, Hong Kong, Macau and Taiwan. Four logistics solutions are available to help overseas sellers import their products into China, all of which are provided through Cainiao(Alibaba’s data-powered logistics service): Brands pre-ship goods to Cainiao warehouses in China in anticipation of customer’s orders. It utilizes Alibaba overseas warehouses for direct fulfillment to consumers ensuring inventory flexibility and low logistic and storage costs for suppliers. For cosmetics, the annual fee is RMB 30,000. Apart from that, due to Tmall Global double 11 activity and the entry of new overseas brands, the import Health Care Products and Medicines sales also increased a lot in 2017. The percentage of product categories from different countries. window.mc4wp = window.mc4wp || { Logistics information must be trackable throughout the length of the process. Any merchant operating on Tmall Global must pay a software service fee based on a certain percentage of their sales (referred to as “rates”). For companies outside China, Tmall Global is the sub-platform for cross-border e-commerce sales. Brands could also use non-Cainiao services such as DHL, FedEx, etc. Stores opened by offline chain supermarkets, marketplaces, online B2C website brand trademark owners, or exclusive entities directly authorized by the trademark owners on Tmall Global. By founding Tmall Global, Alibaba opened the Chinese market to Western brands. On November 11 2012, the Double 11 promotion on Tmall and Taobao attracted 147 million unique … Tmall Global, as one of the most popular cross-border e-commerce(CBEC), still achieve great success in the past 2017. The first thing aspiring Tmall store operators need to know is that there are two different ways to host a store on the platform. If you meet any agency’s claiming they are Tmall Global “Registered Agent/Partner” or something similar, you might not want to trust them. • Develop SKUs to become Hero SKUs The goods sold on Tmall Global are produced initially or sold overseas and imported legally. You also have the option to opt-out of these cookies. } The goods they sell can be traced back to the class-35 trademark holders of the store brands and the brand owners of the goods. You can choose the right cooperation models to start your business. Up to now, there are 17 national pavilions on Tmall Global. Beauty skin care products are becoming the main consumption objects, accounting for 30 percent of Tmall Global’s total sales. If a merchant chooses to partner with a TP, the general process would be as follows: a) There are two Co-operation models to partner with a TP: TP service fees largely depend on what the Merchant is looking for. A Tmall Global English language website has been launched to streamline the onboarding process for international brands that want to sell on the platform. Create new account. The owner of the store must possess all documents from the brand, authorizing the setting up of such a store on Tmall’s platform. Alipay will then transfer the amount to the seller’s bank account overseas when sales reach an agreed amount for transferring (account is created with Alipay when the seller onboarded with Tmall Global). To do this, you will have to prove certain things by providing documents. It allows international brands to sell products under the Cross-border Trade policy which can be free from large time and cost consuming to overcome legal regulation barriers. Due to their passion for trying new things, especially the newest products and brands all around the world, they also become the main force of the sales growth in many small countries. Born and raised in Mainland China with a strong passion for marketing and the fashion industry in China. Tmall Global is one of the largest B2C Cross-border eCommerce platforms in China. Stores opened by brand owners or exclusive dealers directly authorized by trademark owners on Tmall Global. While they might have connections to the Tmall Global team there is no official status as a “registered partner” or anything similar. Requirements for Tmall Global Tmall has the largest B2C sales market. As a result, the import consumption is normalized and become a habit for most customers. This is absolutely necessary. Tmall Global, which celebrated its fifth anniversary in February 2019, was designed to make cross border e-commerce easier for global brands. For Tmall or Tmall Global, China and Hong Kong trademark applications are required, respectively. In 2019, cross-border e-commerce ushered in a major outbreak. Different TMall Store types will have different application requirement which will be discussed in more details below. The goods sold by the merchants can be traced back to the class-35 trademark holders of the store brands and the corresponding trademark holders of the goods. Entering Tmall Global is much simpler than any other option. Tmall China (This is for reference only. ); The Alibaba group of websites – which consists of Tmall, Taobao and Aliexpress – completely dominates the e-commerce space in China with 58.2% market share. @2020 Cosmetics Bridge.com all rights reserved. This model will save the brands to open and operate the stores by themselves. Intellectual Property Services. Typically these stores focus on one product category with multiple brands under their management. } Tmall Global with many other CBEC platforms was born under such an environment, the following article will fully explain the details of Tmall Global. Tmall Global - now and in the future. Tmall Global was set up to help foreign brands enter the Chinese ecommerce market. The consolidated order is air-shipped to China and then delivered to end consumers (max. In 2008, Taobao, Alibaba's C2C marketplace, spun off Tmall … In short, Tmall Global is all about selling authentic, high quality, brand name goods. Only brands with a trademark such as ® or TM can have a flagship store. Here's everything you need to know about selling there. 17/F, 80 Gloucester Road, Wanchai, Hong Kong. The top 4 reasons of why people choose CBEC. 14 days). • Consistent increase in unpaid traffic and daily sales In terms of logistics, Tmall Global requires merchants to send out the orders within 120 hours and arrive in customers within 14 working days, and ensure the logistics information can be tracked. Having a registered business entity determines whether your brand can sell on Tmall or Tmall Global. Alibaba’s IPO on the New York Stock Exchange increased this massive ecommerce company’s brand recognition outside of China. Some examples of companies that have entered the China market through Tmall Global are Lush, Cambridge satchel, and Japanese drugstore brands. In 2018, the first grand opening of China International Import Expo, China government stated that it will be more than US$30 trillion worth of goods and US$10 trillion worth of services imported from oversea in the next 5 years. Tmall Global’s double 11 shopping festival. In the last quarter, Tmall ranked the first in the CBEC market with a 27.6% market share. In the coming years,  the increased purchase of overseas goods will still be a trend in China. This means that Tmall Global invites brands of their own volition to enter the Tmall Global marketplace. Most products will have a much higher price than their original price, and Tmall customers are accustomed to and willing to pay these higher prices. listeners: [], Therefore, the demand for good quality imported products has resulted in a booming cross border eCommerce (CBEC) market. })(); Necessary cookies are absolutely essential for the website to function properly. If a store that meets the above conditions needs to sell goods of brands of non-designated industries, it must provide a first-level authorization from the brand side of the store. The products are sold on the direct import store on Tmall Global. Office Address. Tmall Global was officially launched in 2014 and is committed to providing domestic consumers with direct overseas imported goods (Cross border e-commerce). https://rule.tmall.hk/rule/rule_detail.htm?spm=a2231.7837203.0.0.GaJwnD&id=8942&tag=self. All Tmall Global settled merchants will equip their stores with Chinese consultation and provide domestic after-sales service. This type of store is for invitation only. on: function(evt, cb) { Every Tuesday and Friday, WTR presents a round-up of news, developments and insights from across the trademark sphere.In our latest round-up, we look at how Microsoft’s bid for TikTok is still on the table, Victoria Beckham launching on Tmall Global, Kappa Japan (and associated IP assets) sold, Monster Energy in a dispute with Bang Energy, and much more. If you have any questions about China marketing or the creation of some creative campaigns of your own, feel free to contact us! The brand owners can manage the flagship store by themself or through the help of a Tmall store operation Partner(TP). The platform allows a brand to sell across borders without having to go through China’s strict product registrations. Please refer to the official merchant attraction webpage for application procedures and appropriate charge descriptions. Currently, Tmall Global has 20,000 international brands across 77 countries and regions, more appealing and accessible to niche, small- … This website uses cookies to improve your experience while you navigate through the website. 7 days). The brand trademark owners provide store opening authorization to open a store on Tmall Global. Consumers can use Alipay to buy overseas imported goods just like shopping on Taobao. This method is not usually recommended because delivery times cannot be guaranteed and the cost is high. Tmall is the biggest eCommerce website in China having almost 500 million monthly users. • Return of Investment for Paid Traffic Companies that want to take advantage of Tmall Global must meet following requirements: be registered abroad; have a dealer network; proof of trademark and intellectual property; only sell 100% authentic goods; Start your eBusiness in China A registered corporate entity outside of mainland China; 2. Tmall Global has launched a set of new services to help international brands manage their entry into China in a more-efficient and low-risk way, the cross-border e-commerce site said Thursday.. The products sold in Tmall Global shall all originated or sold overseas already and entered China through official Chinese customs channels through international logistics. Tmall Global is a significant step for Alibaba in cross-border e-commerce. CND relax Hemp control, Does the opportunity for cannabis cosmetics in China has come? Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. This post is by Misha Maruma of Nanjing Marketing Group. The goods sold by the merchants can be traced back to the class-35 trademark holders of the store brands and the corresponding trademark holders of the goods. Also, the decrease of regulation cost across import taxes, registration, Custom clearance, storage, and increasing the per-order purchase limit/ total purchase limit per year of a consumer is another effort from the Chinese government to boost the CBEC business in China. Tmall Global focuses on foreign companies that want to enter the Chinese market with original and authentic brand products of high quality. It can be set up on Tmall China or Tmall Global. It must be: 1. Besides, Kaola.com and JD Worldwide ranked second and third respectively. • UV – Brand awareness – User Viewership Because of many factors such as tax and transportation expenses, most products on Tmall Global are typically more expensive. © Copyright 2019 Dragon Social Ltd. – All Right Reserved. In principle, the brand flagship store can only sell goods under the corresponding brand.  For the Service fee of cosmetics, the Software service fee is 4%. In general speaking, Tmall Global helps brands enter the Chinese market through cross-border e-commerce channels with limited regulation requirements and a minimum quantity of sales. It is a platform for Chinese consumers to buy domestic goods. Following is the table to compare three business models: * Tmall Partner (TP) runs the store operations on brand’s behalf on the Tmall Global platform. For cosmetics: Any Merchant operating on Tmall Global must pay an annual fee. The store can operate commodities of several overseas brands from different industries according to its actual offline or online sales. • GMV In addition to Japan, the US, Australia and other favorite traditional countries, sales in niche countries are also growing fast. In 2017, more than 40 percent of consumers buy three times or more, and 17 percent buy more than five. The brand manages its flagship store on Tmall Global or through the help of a Tmall Partner (TP)*, Brands that are willing to test the China market can use Alibaba’s overseas warehouses to sell through the TOF store on Tmall. (function() { Phone. The strategy of Tmall Global is to be international and attract more global brands. Tmall (named as Taobao Mall before) is a Chinese-language website for business-to-consumer (B2C) online retail, spun off from Taobao, operated in China by Alibaba Group. Perform a trademark search by text or image in brand data from multiple national and international sources, including trademarks, appellations of … A Tmall storefront is essential to the China retail strategy of leading global businesses and the most effective avenue for … Tmall(named as Taobao Mall before) is a Chinese-language website for business-to-consumer (B2C) online retail, spun off from Taobao, operated in China by Alibaba Group. • How to increase repurchase rates and conversion rates of sales. If you have interest, don’t miss this opportunity. We will be keeping a close eye on the developments and trends of Tmall Global. • Guidelines of various regulatory and compliance standards that need to be met by the distributor for the brand to choose the distributor as their authorized reseller This type of store can be launched through invitation only. WordPress Download Manager - Best Download Management Plugin, Don't have an account? • Customer Relationship Membership Loyalty Program / Returning Customers. Tmall Global is … It’s mainly for international businesses to sell brand name goods directly to Chinese consumers. Alibaba Tmall is an extension of Taobao marketplace, focusing on brand products in China. • Marketing Investment (who bears the expense)– ROI, Tmall Global Merchant Acceptance Standards. window.mc4wp.listeners.push( Alibaba group officially launched it on February 19, 2014. Save my name, email, and website in this browser for the next time I comment. Be the brand owner or authorized agency or possess the purchase voucher; and 4. What products can I sell on Tmall? It is a new cooperation model to help overseas brands to test their potentials for China markets. During the webinar, a Tmall Global representative explained that brands do not need to register their trademarks in China and can rely on foreign registrations. Currently working in the Dragon Social team in charge of content marketing. Tmall Global is a dedicated brand store, where millions of Chinese consumers await. Real-Time Deduction of Software Service Fee. As the leader of the CBEC in China, Tmall Global has a great potential for development and innovation. The Top three CBEC’s market share has exceeded 60% of the whole market. More brands and products will be introduced. • Inventory Turnover Rate The shop, according to the rules of Tmall, was authorized to sell the products with its own trademark only. In 2018, Tmall Global is still a great chance you can’t miss. A certain percentage will be levied as service charges for the transfer. Click here to learn more about How to Register a Global Alipay Account. For Distributor Model Considerations: Individuals and companies without a recognized brand can only open a store on Taobao. } To expedite the growth of the cross border eCommerce market and eliminate the traditional trade barriers such as regulation registration, the Chinese government has been consistently working towards making the environment more favorable for cross border eCommerce in the last few years. Tmall Global Canada pavilion opening ceremony. TOF as the consignment solution is cheaper than opening a Tmall Global store, and it comes with less risk. Only companies located outside of China can use Tmall Global. What is Tmall? There are mainly three business models to choose from. It is mandatory to procure user consent prior to running these cookies on your website. The post-90s and post-95s consumers and consumption amount increased year by year. Nowadays, as people’s income increase, they can buy more expensive goods. Consumers are keen to buy health care products and baby food in the United States, Australia, and Germany, and prefer to purchase skincare products in Japan and South Korea.