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What is Tmall for fashion Brands …. in 10 points
- Leading E-Commerce Platform: Tmall, owned by Alibaba Group, is one of China’s largest and most popular online retail platforms, especially prominent in the fashion industry.
- Vast Selection of Fashion Brands: Tmall hosts a wide range of fashion brands, from luxury and designer labels to emerging and local brands,
- Global Fashion Access: Tmall Global, a subset of Tmall, allows international fashion brands to sell their products in China without needing a physical presence
- Consumer Trust and Credibility: Tmall is known for its authenticity guarantee, which is crucial for consumers
- Innovative Fashion Events: Tmall frequently hosts fashion events, such as the Tmall Global Fashion Show, leveraging technology like AR and VR to enhance consumer engagement and shopping experience.
- Data-Driven Insights: Tmall provides brands with valuable consumer data and insights, helping them understand market trends, consumer preferences, and purchasing behaviors in the luxury-apparel sector
- Customized : Brands on Tmall can customize their online storefronts, pages allowing them to create a unique brand experience, showcase their fashion collections, and connect with consumers.
- Integrated Marketing Tools: Tmall offers a range of marketing and advertising tools, including livestreaming, which has become a popular method for fashion brands to showcase products and interact directly with consumers.
- Partnerships , Tmall partner with Fashion Designers and Shows: Tmall partners with designers and fashion shows to bring exclusive collections and fashion trends to its platform, often offering consumers first access to new designs.
- Seamless Shopping Experience: With features like easy payment options, fast shipping, and user-friendly interfaces, Tmall provides a seamless and convenient shopping experience, which is vital for the fast-paced fashion industry.
Here’s a comparative table outlining key features of Tmall, Tmall Global, and Tmall Luxury Pavilion:
|Tmall Luxury Pavilion
|Mainland China consumers
|Mainland China consumers
|Affluent Chinese consumers
|Requires Chinese business entity
|No Chinese business entity required
|Selective, for luxury brands only
|Wide range, including mass-market products
|Focus on international brands and products
|Exclusively luxury and high-end products
|Primarily domestic Chinese market
|Access to Chinese market without local presence
|Targeted at China’s luxury consumer segment
|Local logistics and warehousing
|High-end logistics services
|Competitive pricing due to domestic focus
|Premium pricing possible due to international appeal
|Premium pricing for luxury market
|High level of brand control within platform guidelines
|Brand control with international market considerations
|Exclusive environment for luxury brand presentation
|High due to authenticity guarantees
|High, with emphasis on international brand authenticity
|Extremely high, with a focus on luxury authenticity
|Broad, with access to Alibaba’s ecosystem
|Tailored for international brands entering China
|Exclusive events, collaborations, and releases
|Luxury and high-end retail
Cost of Tmall : minimim 100k$ / year
- Deposit: Tmall requires a security deposit from fashion brands, the amount of which varies based on the type of store and products. This deposit serves as a compliance guarantee for Tmall’s operational rules and policies, around 20k$
- Commission: Tmall charges a commission on sales, typically a percentage of the transaction value. This rate varies depending on the product category, with fashion often having its specific rate. 3-5% , Alipay 1%
- Setup Fees: There is an initial setup fee for opening a store on Tmall, which for fashion brands can be around $30,000. This fee covers the cost of setting up the online storefront and other initial operational expenses.
- Advertising and KOL (Key Opinion Leaders): To effectively market products, fashion brands should budget at least $5,000 per month for advertising and collaborations with KOLs. This investment is crucial for brand visibility and consumer engagement.
- Management Fees: Running a store on Tmall involves management fees, which can average around $4,000. This cost typically includes store operation, marketing strategies, and sales performance optimization.
- Customer Service: Providing customer service is vital for maintaining brand reputation and customer satisfaction. Brands need to allocate resources, either in-house or outsourced, for handling customer inquiries and after-sales service.
- Logistic Costs: Logistic operations, including storage, packing, and shipping, can cost around $1,000 or more, depending on the scale of operations and the specifics of the products.
- Platform-Specific Marketing Campaigns: Participating in Tmall-specific marketing campaigns or sales events (like Double 11) might incur additional costs but can significantly boost sales and brand exposure, investment of 20k$-50k$
- KOLs are necessary on Tmall to bring sales : 3k$-15k$ per inluencer.
- Technology and Analytics Tools: Investing in technology solutions for store analytics, inventory management, and customer relationship management can incur additional costs but are essential for efficient store operation.
- Market Entry Strategy Costs: Brands new to the Chinese market may need to invest in market research and entry strategy development to tailor their offerings to Chinese consumers’ preferences and expectations, adding to the initial cost of setting up on Tmall, like be on social Media
Tmall is becoming a luxury fashion’s online gateway to China?
It is mainly for Big brand in China
For its participation in the FASHION WEEK PARIS (FWP), Tmall has bought together a selection of Chinese designers at the world’s leading fashion centers, as part of the Tmall China Cool initiative, which aims to help forward-thinking designers create their brands both at home and abroad. The china Cool trend appeals to ‘ increasingly experimental and individualistic consumers’ said Jessica Liu director of Tmall fashion and luxury at Alibaba Group.
The question is whether this event will garner local attention or simply get lost in the mix amid dozens of other events and high-profile shows. Young
For its part, Tmall seems confident, and at any rate, the event like all events Tmall does outside of china is intended to attract western shoppers to Chinese brands.
“Tmall China Cool” makes its way to NYFW, courtesy of Alibaba-owned company
« china cool is our forward
« Our debut at Paris Fashion Week is a start for our brand to become more international,» said Qian Xiaoyun, founder and president of Eifini, said the Tmall China Cool event marked the brand’s first appearance at a show outside of China, a milestone as the brand’s 20th anniversary will take place next year.
In the same sense as the China Cool the Swiss-based Richemont group’s e-commerce platform, Net-a-Porter, has announced the opening of a flagship store at the store at Tmall Luxury, Alibaba’s dedicated channel for luxury and lifestyle brands, premium brands. Offering more than 130 luxury and designer brands.
Tmall: An Incubator for China’s Emerging Designers ?
Speaking at Paris Fashion Week, Alibaba Group Marketing Director Chris Tung said the event was also aimed at fostering exchanges between the design and brand communities in France and China. Prestigious brands such as Eifini in the world’s fashion capitals are exposing them to new sources of inspiration, while European brands are discovering what is popular in China, helping them to innovate and advance their work.
The Shows builds upon its mission of expanding creative culture in China providing a platform for Chinese designers to showcase their collections.
10 reason why Small brand should not go to Tmall , go to Douyin instead in 2024
- High Entry Costs: Tmall has significant setup and operational costs, which can be a financial burden for small brands. Douyin, on the other hand, requires a lower financial investment to start marketing.
- Complexity and Competition: The complexity and high competition on Tmall can be overwhelming for small brands. Douyin offers a more level playing field with its content-driven approach.
- Audience Demographics: Douyin’s user base is younger and more engaged with social media trends, making it a better fit for small brands targeting a younger demographic.
- Content Marketing Opportunities: Douyin excels in content marketing, allowing brands to creatively showcase their products through videos, which can be more effective for brand storytelling compared to Tmall’s traditional retail format.
- Lower Marketing Costs: Marketing on Douyin can be more cost-effective, with opportunities to go viral without the hefty advertising fees required on Tmall.
- Personalized Customer Engagement: Douyin allows for more direct and personalized engagement with consumers, fostering stronger brand-customer relationships.
- Faster Brand Recognition: The viral nature of Douyin can help small brands gain recognition and build a following more quickly than the crowded and competitive environment of Tmall.
- Easier Entry and Setup: Getting started on Douyin is generally easier and quicker, with less bureaucratic and logistic hurdles compared to setting up a shop on Tmall.
- Influencer Collaborations: Collaborating with influencers and KOLs on Douyin can be more accessible and affordable for small brands, offering a high return on investment through influencer marketing.
- Adaptability and Experimentation: Douyin’s platform allows for greater flexibility in marketing strategies, enabling small brands to experiment with different content types and strategies to see what resonates best with their audience.