Tmall Global is a dominant cross-border e-commerce platform, the first choice for many well-established international brands to land on if wish to sell in China.
Tmall Global allows foreign brands without a Chinese business entity to sell to consumers directly by opening their exclusive flagship stores. It is extremely popular among global brands that already have a recognizable brand in China, but why?
How Tmall global flagship store works?
Through this business model, participating brands can manage their flagship store on Tmall global through the help of a tmall partner.
It is a self-managed flagship style business, where the brand can use the shop to promote new products and drive traffic to its top sellers.
Within tmall global stores, merchants can open a:
- Flagship store that allows foreign merchants to sell directly to consumers without a Chinese commercial entity. TPs help foreign brands open their tmall store.
- Specialty store, this type of shop exists for merchants who have received distribution rights from foreign brands to sell their products in China. The trader is able to sell products in up to two categories.
- Authorized shop that can sell multiple products in a range of different categories, but you must receive the rights to sell the products from the owners of the brands.
Sephora Tmall Global Flagship Store
On May 20, 2020 the famous beauty retailer Sephora also has launched the Sephora Tmall Global Flagship Store.
The opening of the Sephora Tmall Global Flagship Store offers Sephora a great opportunity to continue strengthening its commitment in the Chinese market, satisfying the changing trends of the Chinese consumer and the evolving needs to improve its beauty power.
In addition, this partnership helps to:
- introduce overseas brand into China market
- connect Chinese customers to the world
- synchronize the local community with global beauty trends
- bring together numerous emerging and popular overseas beauty brands
- offer the benefit of breaking geographical and time barriers through cross-border e-commerce
In fact, the store provides Chinese consumers with 600 products from 25 overseas brands, that cover make-up, skincare, fragrance and hair care products, enabling them to turn on their beauty power without national boundaries.
Other Tmall global business models
Anyway there are other options on Tmall global for western companies entering in the Chinese market.
Tmall overseas fulfillment (TOF)
This is a way that has a relatively low risk. It applies a direct import shipping model allowing brands to place a small batch of products at the nearest Tmall global fulfillment center for sale on the platform.
Imported goods can be stored without import duties until the items are shipped, thus reducing costs for suppliers.
This approach allows brands to perfect product selection for the market without the need for a physical retail presence in China or significant investments in the development of a logistics network.
Tmall direct import (TDI)
It functions as a B2B2C wholesale model. The TDI team would buy products from brands and sell them to the Tmall direct import store. Unlike the TOF which places unsold products in overseas warehouses, the selected products will be shipped in bulk directly to the warehouses bound in China.
If you want to know more about how to sell on Tmall global read the following links
For further information about Sephora’s launch of Tmall global flagship store read the following link