0% found this document useful (0 votes)
265 views53 pages

Getting Started On Tmall Global

Uploaded by

JohanLai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
265 views53 pages

Getting Started On Tmall Global

Uploaded by

JohanLai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 53

Getting Started on

Tmall Global
Sell online to China using
cross-border e-commerce

Azoya International
May 2020 / Shenzhen, China
About
About this Report
This report is designed to help international brands & retailers understand the intricacies of launching and scaling a
store on Tmall Global, China’s largest import cross-border e-commerce platform.
The report covers basic information on set-up requirements, user base analysis, category breakdown, and crucial tips
on how to drive sales. The reader will walk away with a basic understanding of how to get started selling on the
platform.

Introduction
An Introduction to Azoya
Azoya is a borderless commerce enabler that helps international brands & retailers build and scale China e-
commerce businesses. Our services include e-commerce set-up & operations, digital marketing, managed logistics, IT
infrastructure construction, and more.
We are based in Shenzhen, China with nearly 200 employees worldwide.

www.azoyagroup.com [email protected]
General Information
About Tmall Global ········································[04]
Categories & Brands ······································[16]
Users on Tmall Global ···································[21]
Your Bridge to
Practical Tips
Setting Up Store & Product Pages ···········[26]
China Retail
Driving Traffic/Sales
Ads, Content, Livestreaming ·················[30]
Campaigns ·················································[39]

How Tmall Rates Your Store Summary ················[48]


General Information
About Tmall Global

· a · z · o · y · a ·

04
About Tmall Global
Tmall Global is Chinas largest cross border e commerce platform for customers to purchase quality, imported products.
Combined with its recent acquisition of Kaola, it holds over share of the market

China Cross-Border E-Commerce


Market Share Q

Others 18%
22,000+ international brands
Xiaohongshu 5%
78 countries and regions represented Tmall
Global + Kaola
4,300+ product categories 52% VIP International 10%

Source: iiMedia Research, Tmall Global, CBN Data


JD International 15%

· a · z · o · y · a ·

05
Tmall vs Tmall Global
Tmall Global enables foreign brands and retailers to set up a China e commerce store without a localized China business. No
need for product registration, import documents, or other processes associated with general trade importing.

Tmall is China’s largest domestic B2C e-commerce platform with Tmall Global is a subsidiary of Tmall and China’s largest cross-
over 666 million monthly active users border e-commerce platform

Merchant Requirements Merchant Requirements


Ÿ Chinese legal entity Ÿ International legal entity
Ÿ Chinese corporate bank account Ÿ Corporate bank account in home country
Ÿ China registered trademark Ÿ Trademark registered in home country
Ÿ Goods have passed China CIQ and general imported to China Ÿ Goods stored & fulfilled from overseas warehouse, Hong Kong
Ÿ Goods stored and fulfilled from China warehouse warehouse, or China bonded warehouse, no need for CIQ and
general importation.

Source: Tmall, Tmall Global

· a · z · o · y · a ·

06
How Cross-Border E-Commerce on Tmall Global Works
Under cross border e commerce, merchants ship quality, imported products to customers after they order products on Tmall
Global

Technology Customer Service Traffic

Health & Nutrition High-Quality


Products
Launches Store
Overseas Merchant
Orders Product Consumers

Beauty & Cosmetics


Merchant Ships Product
Direct Shipping or Bonded Warehouse Shipping

Mom & Baby


9am-Midnight Product Quality 7-Day Return
Customer Service Guarantee Policy
Source: Tmall, Tmall Global

· a · z · o · y · a ·

07
Brands vs. Multi-Brand Retailer Stores
Brands use Tmall Global as an official China storefront for both brand building and sales growth, while multi brand retailers use
it as one of many sales channels.

Tmall Global for Tmall Global for


Brands Multi-brand Retailers

Purpose Purpose
Brand-Building, Official China One of Many
Presence, Sales Growth Sales Channels

A Tmall Global store acts as a launchpad for a For retailers, a Tmall Global store acts as one out
brand’s official China business. It can be used to of many sales channels. It enables retailers to
gain initial brand exposure, build a story & reach a general user base because it fits within
identity, and grow sales to a point where the Alibaba’s Taobao/Tmall ecosystem. This is contrast
brand can formally enter China through general to smaller platforms which may have a more
trade & import. niche user base.

· a · z · o · y · a ·

08
Different Business Models on Tmall Global
There are different options for different merchants

Brands looking to set up a B C Merchants looking to set up a Merchants looking for a direct
e-commerce store multi-brand B C e-commerce store B B C buying relationship

Store Options: Store Options: Store Options:


Flagship Store, Authorized Store Authorized Store, Specialty Store, Tmall Direct Import, Tmall Fashion,
Business Model: Web2Web Flagship Store Tmall Beauty, Tmall Health, Tmall Overseas
Direct shipping or bonded warehousing Business Model: Fulfillment, etc.
consignment Direct shipping or bonded warehousing Business Model:
Who Runs the Store: consignment Bulk sales to Tmall, shipping to Tmall/
Merchant Who Runs the Store: Cainiao warehouses
Merchant Who Runs the Store:
Tmall operations teams

· a · z · o · y · a ·

09
Different Business Models on Tmall Global
Tmall Global offers different types of stores for different merchants
Options for Brands Options for Multi-Brand Stores

Flagship Store brand owners Flagship Store Industry Flagship Store Marketplace
(品牌旗舰店) (⾏业卖场型旗舰店) (卖场型旗舰店)
Only brands with a ® or TM trademark can have a flagship Multi-brand stores set up by class-35 trademark Multi-brand stores set up by supermarkets,
store. The owner of the store can either be the brand or an holders with at least five years of operating marketplace retailers, etc. Merchants need to
authorized agent, who must possess all documents experience and a B2B/B2C e-commerce site OR at be able to trace goods to the class-35
required. least five offline stores in their respective countries trademark holders.

Authorized Store Web Web store Specialty Store


(专卖店) (官⽹同购) (专营店)
For merchants that have a permit from the brand to sell its For multi-brand retailers with many SKUs. Tmall Stores operating two or more brands under the
products, but not on an exclusive basis. Products need to store uses an API to connect back-end with same business category on Tmall Global.
have trademark registration in Hong Kong. existing e-commerce website, uploading and Distributors must have evidence of product
updating many SKUs. source & invoice. Shop name cannot conflict
with others.
· a · z · o · y · a ·

10
Tmall Global Web Web W W Program
The Web Web program enables multi brand retailers to quickly build a Tmall store and upload large numbers of SKUs
from an existing e commerce website. This speeds up the onboarding process for retailers with many SKUs

Product, Inventory, pricing


API

Order, logistics, customs info


API

Feelunique Tmall Web Web Store Delivery info Feelunique Official China Website
API
Benefits Requirements
· Less manual work, quicker onboarding process · Must have an existing B2C e-commerce website
· More flexible with regards to brand authorization requirements · Must have at least 10 brands with >5,000 SPUs
· Not required to use Cainiao logistics · Website must have a SimilarWeb ranking within top 10,000
globally, top 1,000 within home country, or top 500 within
respective category

· a · z · o · y · a ·

11
Tmall Global Direct Import
Tmall Global has a number of in house teams that run category specific stores for imported goods. Merchants can negotiate
direct sales with their procurement teams. Each stores product images have a different color trim.

Tmall Global Fashion Tmall Global Beauty Tmall Global Supermarket Tmall Global Home Tmall Overseas Fulfillment Tmall Global Baby
fashionglobal.tmall.hk beautyglobal.tmall.hk jinkou.tmall.hk homeglobal.tmall.hk tof.tmall.hk babyglobal.tmall.hk

· a · z · o · y · a ·

12
Tmall Store Application Process
The Tmall store application process is typically conducted with the help of a trusted trade partner TP .

Select TP, Work with TP on Submit Final Store Design


Submit Brand Details, Merchandise Merchandise List, & Onboarding
Get Initial Feedback Selection & Pricing Operational Plan
Phase Phase

Obtain Invitation Submit Documents, Store Launch


From Tmall Merchandise List

· a · z · o · y · a ·

13
Picking a Tmall Partner (TP)
A TP is your crucial China e commerce partner. They handle e commerce operations on Tmall Global. Choosing the right TP is
crucial because they run the day to day management of your business. Your TP will work with you to prepare a pitch for and
negotiate with Tmall Global.

An Ideal TP can Offer Services such as….

Daily Project Management Web Store Maintenance Managed Logistics IT Infrastructure Build-Out
& Communication & Operations

Payments & Settlements Digital Marketing Merchandising & Pricing Sourcing

· a · z · o · y · a ·

14
Budgeting for Tmall Global
Brands looking to enter China through Tmall Global have a host of different fees and costs to handle. In some cases brands pay
the taxes & shipping costs, and in other cases they pass on the expenses to customers.

Non Tmall Cost of Goods Sold Brand Marketing Costs TP Fees Import Duties Shipping Costs
Expenses
The costs of producing Marketing costs outside TP fees may vary Varies depending on shipping Varies depending on
products of Tmall. WeChat, Weibo, channel used and whether geography, weight, etc. and
influencer ads, PR, etc. the merchant absorbs taxes whether the merchant passes
on costs to customer

Tmall Expenses Tmall Commissions Alipay Payment & Fixed Tmall Fees Tmall Performance
Ranges depending on Settlement Fees Annual technical fee (depending Marketing Costs
product category Fixed at the rate of 1% on category) + Deposit Search ads, display ads, etc.

· a · z · o · y · a ·

15
General Information
Categories & Brands

· a · z · o · y · a ·

16
Emerging Subcategories on Tmall Global
These emerging subcategories are currently popular on Tmall Global.

Science-Backed Trendy Animal Food Diet Weight Loss OTC


Dermaceuticals Sportswear Accessories Products Pharmaceuticals
Consumers are Athleisure is the new More and more Millennials are more Some OTC products
increasingly looking for fashion trend amongst millennials are raising conscious of their health cannot be found in
specific ingredients to millennials, as China’s pets than ever before, and look for products to mainland China.
solve certain skin hip-hop culture takes off and are starting to look help them lose weight Imported children’s
problems and white-collar workers towards imported goods cough syrup, special
pursue more active for quality creams, and vitamin
lifestyles tablets are popular

Source: Tmall Global

· a · z · o · y · a ·

18
Tmall Global on Singles Day
Singles Day acts as a good benchmark for how a brand will do in the China market. Singles Day showed that Tmall Global
remains a strong platform for imported products.

Top
Countries
Ÿ Tmall Global sold over 620,000
products from 78 different countries
Japan USA South Korea Australia Germany

Ÿ 167 brands sold over 10 million RMB of


merchandise
Top
Categories
Ÿ Eight brands sold over 100 million RMB
Health & Beauty & Mom & Fashion Electronics of products
Nutrition Cosmetics Baby

· a · z · o · y · a ·

19
Is My Brand Right for Tmall Global
Tmall Global makes sense for products that have some brand awareness in China. Heres a few questions to ask yourself if you re
thinking of getting on Tmall Global.

Testing for Reputation


Risk Reward Analysis How Well-Known is My Brand in China

Ÿ How big is the market opportunity in my


Market Sizing subcategory? Ÿ Are daigou and C2C sellers selling my product
on the gray market via Taobao or WeChat?
Gray Market Demand
Ÿ How competitive is my subcategory?
Competitive
Analysis
Ÿ Who are the other competitors and what Ÿ Can my brand be found in Baidu search
prices are they selling at? results? Are there articles about my brand?
Search Engine Results

Ÿ Is my budget large enough for launching a


store on Tmall Global?
Ÿ Can my brand be found on Chinese social
Forecasting media platforms? Are people talking about it
Ÿ Is the opportunity worth the risk? on WeChat, Weibo, Xiaohongshu, etc.?
Social Media Buzz

· a · z · o · y · a ·

20
General Information
Users on Tmall Global

· a · z · o · y · a ·

21
Who is the Tmall Global Customer
Tmall Global customers are young, middle class consumers who are looking for safe, high quality imported products. They are
primarily based in Chinas Tier and Tier cities.
Tmall Global Singles Day Tmall Global Singles Day
Sales Breakdown by Age Group Top Cities for Sales

>39 years old 15% <19 years old 4%

Shanghai Beijing Hangzhou

34-39 years old 11% 19-24 years old 24%

Guangzhou Shenzhen Chengdu

29-34 years old 20% 24-29 years old 26%

Wuhan Nanjing Suzhou Chongqing


Source: Tmall Global
· a · z · o · y · a ·

22
Different User Groups on Tmall Global
Brands can target different customer segments on Tmall Global.

Supplements, Supplements, Beauty


Milk powde probiotics,personal Nuts, probiotics, Skin care,
care items dried fruits personal care items cosmetics supplements

Concerned Parents Healthy Professionals Beauty Enthusiasts

Ÿ Want the best for their children Ÿ White-collar professionals working late in Tier 1 & 2 cities Ÿ Buying niche cosmetics products
Ÿ Buy milk powder, supplements, probiotics, lotion Ÿ More concerned about health and nutrition Ÿ Willing to pay for effective skincare products

Other sportswear Other animal


Sneakers Pet food, care items like
like track jackets, supplements
yoga pants shampoo, soap,
clothing
Sneakerheads Animal Lovers

Ÿ Like to buy sportswear and special edition Ÿ Raise pets to reflect status, feel less lonely
sneakers to keep up with trends
Source: Tmall Global, CBN Data

· a · z · o · y · a ·

23
Tmall Tmall Global Average Annual Spending User
The average user spends over , RMB a year on Tmall, up from , RMB in . Order frequency and average basket value
per transaction have both increased, indicating the loyalty of Tmalls user base.

Revenue User RMB Average Annual Spending per Tmall User

RMB RMB RMB RMB RMB

Source: CTR Fiscal reports of Tmall Taobao JD. . iiMedia Research < - China Cross Border ecommerce Report>

· a · z · o · y · a ·

24
How Users on Tmall Stack Up Against Other Platforms
While JD.com is known for electronics/FMCG products and Kaola has a user base of daigou and moms, Tmall has a much more
general and larger user base. Tmall Global is better for launching new products because of its wide reach.

Average Annual Spending per User

RMB

RMB RMB RMB

Tmall JD.com Kaola

Source: CTR Fiscal reports of Tmall Taobao JD. . iiMedia Research < - China Cross Border ecommerce Report>

· a · z · o · y · a ·

25
Practical Tips
Setting Up Store & Product Pages

· a · z · o · y · a ·

26
Designing Your Store Page Brand Flagship Store
For a brand, the store page and layout is focused on . portraying the brand identity properly, . highlighting hero SKUs, and .
using promotions to encourage conversions. This is because brands often have limited numbers of SKUs and want customers to
focus on their hero product

Key Factors
Visual Identity: Color scheme
Colors, logos, themes must match brand reflects Pixi’s soft
identity 55 RMB off if pink/green theme
customer spends
300 RMB.
Product Layout:
Products reflect hero products. Categories 60% of Pixi SKUs are
are presented in order of importance skin toner products,
so toner is in the
front, followed by
eye creams
Campaign Highlights:
Run promotions to encourage customers to
make a purchase
Pixi Front PageTmall Global

· a · z · o · y · a ·

27
Designing Your Store Page Multi-Brand Store
For multi brand stores, customers are faced with the challenge of navigating hundreds of SKUs from different brands. Store
owners must position their store layout and promotions to help customers make decisions easier.

Landing Page:
highlights promotion to entice conversion
Page Layout:
focus on presenting the highest volume
SKUs to drive sales
Product Selection:
Many SKUs so objective is to help users
quickly find product requirements
alue added services:
retailers must provide other services to
differentiate themselves, such as beauty tips,
gift sets, etc.
RMB free shipping promotion Different offerings for different
to encourage conversion categories

· a · z · o · y · a ·

28
Product Page Selling Points
In China, the product page is very important because consumers rarely go to a brands official website to do research. Thus,
brands in China must put more information on product ingredients, selling points, etc. It s not uncommon for a product page to
have pages of content.

Soft, glowing skin,


reduce yellow Glycolic acid

Exfoliate pores, Ginseng


soften skin

Improve skin Aloe vera


quality, balance
moisture & oil
It s common to change the color trim of product Many customers look to beauty Ingredients are an important selling
products to solve certain functions, point. Many customers will search for
images to match certain holidays and highlight so it s important for the brand to specific ingredients when doing
promotions highlight this product research

· a · z · o · y · a ·

29
Practical Tips
Driving Traffic/Sales
Ads, Content, Livestreaming

· a · z · o · y · a ·

30
Where Your Traffic Will Come From
On Tmall, your customers will come primarily from two channels: organic traffic and paid traffic. In the early stages, customers
won t be searching for your brand so there will be low organic traffic. Brands have to spend heavily on paid ads and brand
marketing outside of Tmall to build awareness.

Paid traffic can come from search ads,


Organic affiliate ads, retargeting ads, display ads,
Traffic group-buying campaigns (Juhuasuan), etc.
Organic traffic can come from many Paid
channels: home pages, category pages, Traffic
search results, etc.

Where Do Platform Promotions Fit In?


Brands can register to participate in Tmall platform-wide promotions in which a handful of discounted goods from different merchants are highlighted on
the front page or category page. We get more into platform promotions later on.

· a · z · o · y · a ·

31
Paid Traffic Options
Within Tmall, merchants have the options to spend their budget on these paid advertising tools.

Zhitongche SEM Taobaoke Affiliate Diamond Booth Pinxiaobao DSP Ads Super Recommendation Juhuasuan
Display Ads Retargeting Ads Group-Buying Ads

· a · z · o · y · a ·

32
Paid Traffic Options
Suitable for which Suitable for
Name Model ROI How It Works products which users
Juhuasuan Ads Fixed fee High Tmall posts your product promotion on Juhuasuan landing Discounted products Price-sensitive users
+ CPS page which drives traffic; product pictures are denoted
(聚划算) commission with special marker

Taobaoke affiliate ads CPS High Affiliate partners link to your product in exchange for sales Those with some brand Social users with higher
(淘宝客) commissions. Affiliate partners include content sites, recognition; affiliates will only purchasing intent
Weibo, online forums, QQ groups, and even Douyin videos. take if they think they can sell

Zhitongche SEM ads CPC Medium Sponsored search result ads that boosts your product in Products must have some Those who searched for
(直通⻋)
search rankings for certain keywords. recognition for people to be your product and have
searching for them high buying intent.

Pinxiaobao SEM ads CPM Medium Search result banner ads that drop down from the search Products must have some Targets more visual users
(品销宝) bar. Relatively new, ROI increases as brand becomes better recognition for people to be
known. searching for them

Super Recommend CPM, CPC Medium Image display ads that show up for users who have Products must have some Those who searched for
Retargeting Ads browsed your pages. Can show up on the front page, recognition for people to be your product and have
(超级推荐) shopping cart page, post-transaction page, etc. already browsing them high buying intent.

Diamond Booth CPM, CPC Low- Image display banner ads that may show up at the side or Visually attractive products New customers
Display Ads Medium bottom of the screen.
(钻展)
· a · z · o · y · a ·

33
Brand Marketing Outside of Tmall
Investing time and effort in building a brand outside of Tmall is important, especially in the initial stages when your brand isn t
as well known and customers aren t as likely to search for it on Tmall.

UGC/Community Platforms Long-Form Video Platforms


Xiaohongshu, Bilibili, etc. iQiYi, Youku, Tencent Video

Short Video Platforms Offline Ads Elevator ads,


Douyin, Kuaishou bus/subway ads, billboards, etc.

Search Engine Marketing Offline Events


Baidu, 360, Sogou PR events, pop-up stores, etc.

Social Media Marketing


WeChat, Weibo
· a · z · o · y · a ·

34
Planning Your Marketing Budget
In the beginning, lesser known brands will typically spend more money on marketing outside of Tmall and Taobaoke affiliate
ads, which drive traffic from other channels. As your brand gains awareness amongst target customers, more of the budget will
be spent on Tmall ads to drive sales conversions.

C h at M
KOL
arketing
What Do Multi Brand Sellers
We Spend Their Marketing
ing
Retargdest DSP ads
a Budget on?
g
Xiaoshhoun Weibo Ÿ Multi-brand stores are different in that
Dispdlsay Search
ads they sell larger numbers of SKUs from
a brands that are already well-known.
Non-Tmall
Marketing
Tmall Ÿ In these cases these popular SKUs
Marketing already have high brand awareness
and existing demand, so the seller will
spend more on ads within Tmall that
can quickly convert sales.

· a · z · o · y · a ·

35
Livestreaming to Drive Sales Conversions
Hosts can hold livestreaming sessions on Taobao Live within Tmall ecosystem to present and discuss their products in real time
with potential customers. Customers can interact directly with the host and ask questions about products, increasing brand
engagement and driving sales.

Seller Link What Happens During a


Livestreaming Session?
Ÿ A brand introduction
Ÿ Interactive element such as raffle or quiz
Ÿ Product by product introduction &
demonstration (host tries on product)

In addition to these, the host typically engages


in live Q&A about the products throughout the
session. Altogether, the session can last from
Product List minutes to hours
A -hr livestreaming session hosted by
Viya, China s top livestreaming host

· a · z · o · y · a ·

36
Livestreaming to Drive Sales Conversions
Hosts can hold livestreaming sessions on Taobao Live within Tmall ecosystem to present and discuss their products in real time
with potential customers. Customers can interact directly with the host and ask questions about products, increasing brand
engagement and driving sales.

Why Livestream?
Ÿ It entertains the customer,
personalizing your brand

Ÿ It educates the customer about


your brand and builds trust with
him/her

Ÿ Customers have a higher


propensity to buy your products
Product List
Ÿ Livestreaming can be a good way
Livestreaming Session Product Selection Buy
to launch new products

· a · z · o · y · a ·

37
Hiring a KOL to do Livestreaming
Hiring a KOL and livestreaming your products on their existing channel ensures access to their fan base, which could be an
entirely new subset of target customers for you. However, KOLs are getting more expensive to work with and in many cases only
the top KOLs can drive sales with a high ROI
Cons
Expensive
Pros Ÿ Top KOLs charge high fixed fees + sales commissions, which
can erode your profits
New Channel
Ÿ Can reach new customers because KOLs have pre-existing fan Customers Loyal to the KOL, Not You
bases Ÿ Customers are buying the product because they trust the KOL,
and may not stay loyal to you
Immediate Sales Conversions
Ÿ Since their fans trust the KOLs, they can drive sales Price Sensitive & Discount Driven
Ÿ Now every brand is livestreaming, and KOLs are getting more
Professional & Experienced picky with regards to brands they work with, oftentimes
Ÿ KOLs are professionals at entertaining and educating opting for those with the highest discounts
customers, saving you the hassle of doing everything
yourselves

· a · z · o · y · a ·

38
Practical Tips
Driving Traffic/Sales
Campaigns

· a · z · o · y · a ·

39
What are Tmall Campaigns
For holidays such as Singles Day or Valentines Day, Tmall will aggregate discount promotions from different sellers to draw
attention from users. It is a good option for merchants to drive traffic and sales conversions as customers propensity to buy is high.

Promotion on Front Page List of Products on Sale Product Page Japanese Hair Press

Platform campaigns can account for the bulk of one s annual sales
Source: Tmall Global · a · z · o · y · a ·

40
Types of Campaigns
Tmall promotions revolve around discounts. Here are the many different kinds pf promotions that exist.

Juhuasuan SecKill limited-time only deep discount Buy One Get One Free
聚划算 秒杀活动 买⼀送⼀活动
Group buying Offers a discount on a single Such promotions are less common in
Need to pay to participate item for a limited time only, China, and usually for low- priced
oftentimes with a countdown items. Sometimes the merchant will
timer to give a sense of urgency. send an accessory free of charge.

Buy One Get Second Buy a Certain Amount, Buy a Certain Amount,
Discounted Get More Free Single Item Discount
Get a Discount
买降活动 满赠活动 特价
满折/满减活动
Mainly used by retailers who bought Similar to buy one get one free Get a discount on the order for that Self-explanatory. This promotion
their inventory at a low wholesale promotions, but for multiple particular item if you purchase a offers a discount on any one item.
price and can still make a profit after quantities. certain amount.
discounting.
Source: Tmall Global · a · z · o · y · a ·

41
Timeline for Campaigns
To qualify, you must have a strong seller rating and submit your products & prices to Tmall for approval.
Register Preparations Pre-Heat Launch Cooldown
with Tmall Period Promotion Period

Start 1 2 3 4 5 Finish
Ÿ Submit products, Ÿ Design landing page Ÿ Raffle, countdown, Ÿ Livestreaming Ÿ Review results
prices Ÿ Plan w/ KOLs entertainment Ÿ Text notifications
Ÿ Stock up on inventory Ÿ Pre-sales to customers
Ÿ Social media marketing

Tips
Your Seller rating is important. Sellers with a rating below 3.8 are not allowed to participate in Tmall promotions,
depriving them of a large source of traffic.
Make sure you have enough inventory. For large promotions such as Singles Day, demand can spike dramatically and it is
common for merchants to run out of inventory, giving customers a bad experience.
Pre-sales can account for a large portion of sales. In the period leading up to the promotion, merchants are allowed to
launch pre-sales in which customers can pre-pay a deposit for goods and have them delivered once the promotion starts.

· a · z · o · y · a ·

42
Tmall Campaign Calendar
Tmall holds four big promotions every year, as well as a handful of other smaller ones.

Chinese New Year Double 12


Jan-Feb Dec 12
618 Festival Qixi Festival National Week
Jun 1-18 Aug 7 Oct 1-7
Valentines Day Christmas
Feb 14 Dec 25

January February March April May June July August September October November December
01 02 03 04 05 06 07 08 09 10 11 12
January February March April May June July August September October November December

Singles Day
Nov 11
Womens Day 520 Festival Mid-Autumn Festival
Mar 7-8 May 20 Sept 13

Black Friday
Nov 24-28

· a · z · o · y · a ·

43
Benefits Drawbacks of Tmall Campaigns
The point of Tmall campaigns is to help brands drive traffic & sales.

Benefits Drawbacks
Ÿ Drives traffic. Campaigns can attract users Ÿ Discounting pressure. Brands are often
that wouldn’t normally find your brand forced to put steep discounts on their
through organic or paid traffic. products.

Ÿ Sales conversions. The discounts Ÿ Doesn’t work for unknown brands.


associated with promotions are designed Campaigns Typically have to sell well-known brands to
to get customers to make impulse get customers to make impulse purchases.
purchases. Ÿ
Ÿ Increasing competition. Since more and
Ÿ Long-term customer acquisition. Users more merchants are on Tmall, it is more
who discover your brand may come back and more difficult to participate.
in the future to buy at full prices

· a · z · o · y · a ·

44
Example Singles Day Campaign
Here is an example of an ideal Singles Day Campaign. Mixing KOL marketing with Tmall ads, livestreaming, and free sampling is
a good way to drive sales conversions.

UGC Content, Product Trials


Brand partners with top WeChat blog
to launch a product trial campaign
prior to Singles Day, encouraging
Livestreaming customers to post user-generated
Brand partners with top KOL to content on social media platforms.
livestream products in the few
days leading up to Singles Day,
driving a significant portion of
pre-sales revenues.

Tmall Ads KOL Seeding on Social Media


Brand invests in broad mix of Brand works with KOLs on WeChat
advertising channels on Tmall, and Weibo to post product reviews,
including affiliate, search, Juhuasuan, setting the stage for additional
Super Recommend ads, and more. commentary from users.

· a · z · o · y · a ·

45
Reviewing Campaign Results
After completing a major campaign such as Singles Day or the Festival, you should ask yourselves these questions to
measure performance and prepare for future campaigns.
Which product categories did well?
Which products did well? How did the “hero” product perform vs others?
Were there issues with inventory supply?
Merchandise
How did organic traffic channels perform vs paid traffic channels?
Which advertising methods worked the best?
Traffic What were the ROIs for KOL and other media partnerships?

How much sales came from new vs old customers?


What was the age breakdown of the customers?
Customers Which categories and search keywords were popular amongst customers?

How was sales performance vs that of other competitors?


What did they do that was more successful?
Competitors
What were some of the major issues with this campaign?
What can we improve on for the next campaign?
Learnings
· a · z · o · y · a ·

46
Ways to Create a Long-Term Membership Program
New customer acquisition costs are getting higher and higher, so sellers have to spend more time and effort on retaining existing
customers. Here are the different ways to create a membership program.

4 1
Churn Period (After 365 Days) Active Period (63 days)
Ÿ One-year ceremony gift Ÿ VIP welcome pop-up window
Ÿ Festival greeting (low frequency) Ÿ Post-visit satisfaction survey
Ÿ Activities to re-engage lost customers Ÿ Encourage second purchase

Weak Repurchasing Intent Strong Repurchasing Intent

3 2
Sleep Period (172-365 days) Silent Period (64-126 days)
Ÿ New product trials Ÿ Group-buying promotions
Ÿ Points redemption Ÿ Membership upgrade
Ÿ Activation campaigns Ÿ 100-day ceremony gift

· a · z · o · y · a ·

47
How Tmall Rates
Your Store Summary

· a · z · o · y · a ·

48
How Tmall Rates Your Store
Tmall rates your store based on your sales figures and customers experience buying from you; there are two approaches that are
taken. If your rating and sales figures don t hit a certain level, you may be barred from participating in campaign promotions or
removed from the platform completely.

· Customer Service Experience


Basic
Approach #1
Sales
Figures + Assessment
Score
· Logistics Experience
· Product Experience
· After Sales Service Quality
· Dispute Resolution Score
Comprehensive Rating

Detailed
Approach #2
Sales
Figures + Seller
Rating
· Product/Description Fit
· Customer Service Experience
· Logistics Experience

How Customers Rate You


· a · z · o · y · a ·

49
Summary
Ÿ Tmall Global is a great channel for imported brands looking to sell to Chinese consumers without having to set up a Chinese
About company and building a local Chinese team
Tmall Global Ÿ There are many different types of business models for both brands and retailers looking to do business on Tmall
(pages 4-15)
Ÿ International brands & retailers typically use TPs, or trade partners, to manage their China cross-border e-commerce businesses.
Selecting a suitable TP that understands the brand is much more important than picking the one with the cheapest services

Categories & Brands Ÿ The top product categories are health, beauty, and mom & baby. Rising subcategories include science-backed dermaceuticals,
(pages 16-20) sportswear, animal food, diet products, and OTC pharmaceutical products

Users on Tmall Global Ÿ Tmall Global customers consist of well-educated, high-income millennials living in Tier 1 and 2 cities
(pages 21-25)
Ÿ Tmall offers a variety of different advertising tools for merchants, though sellers should invest heavily in non-Tmall marketing for
newer, less established brands
Practical Tips Ÿ Livestreaming is a new method of driving sales conversions, though it is getting more competitive. Sellers should strive to use the
(pages 26-47) top KOLs for best results
Ÿ Campaigns are an important part of Tmall marketing and can comprise the bulk of your sales. The most important ones are
Singles Day, 618 Festival, Double Twelve, and Black Friday
Ÿ Tmall has a rigorous rating system for scoring new sellers. Those that don’t reach a certain sales level or rating aren’t eligible to
Summary participate in campaign promotions, and may be removed from the platform
(pages 48-50) Ÿ Now that customer acquisition costs are higher than in the past, brands should have a good strategy to maintain the loyalty of
existing customers
· a · z · o · y · a ·

50
A BORDERLESS DIGITAL COMMERCE GROUP

WHO
Who We Are
We are a borderless e-tailing group. We
Established
in 2013
Shenzhen+
Chengdu 200+staff
50+international
retailer &brand
partners
power global retailers and brands with
digital commerce solutions and services
to help them to grow in China. CN Webshop Marketplaces WeChat E-Commerce

What
What We Do
Ÿ Cross-border e-commerce solutions
Ÿ All-channel China digital expansion
Ÿ Stand-alone D2C e-commerce
Ÿ Marketplace operations
Ÿ E-commerce technical solutions
Ÿ Consulting and research Technology Operations Marketing Supply Chain Consulting
Contact
Contact Information

To inquire about our China e-commerce


solutions and how we can help grow your retail
business in China, please write to us at
info azoyagroup.com Your Bridge to
China Retail
For more information about our company and
what we do, please visit our official website at
www.azoyagroup.com
OUR VISION

CONNECT GLOBAL BRANDS


WITH CONSUMER MARKETS

www.azoyagroup.com

You might also like