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Exporting to China with Tmall GlobalCeline Xu & Mim Figueiredo
26.05.2021
The Alibaba Ecosystem
MOBILE MEDIA & ENTERTAINMENTCORE COMMERCE
PAYMENTS & FINANCIAL SERVICES LOGISTICSMARKETING SERVICES DATA
MANAGEMENT PLATFORMCLOUD COMPUTING
Backbone of global commerce
Play a central role in day- to- day life
LOCAL SERVICES
Tmall Global enables international brands & retailers to sell to Chinese consumers
Tmall Global is the largest B2C cross-border eCommerce platform in China
and the premier destination for global brands to reach Chinese consumers.
84Countries
and Regions
5,300+Categories
29,000+International
Brands
Source: Alibaba Group, May 2021
Highlights from 11.11 Global Shopping Festival 2020
GMV +26% compared to the same timeframe in 2019
More than 250,000 brands participated of which 31,000+ are overseas brands
470+ brands achieved more than RMB 100mn in GMV
11.11 2019 6.18 2020 11.11 202011 26 357
No of new brands TOPPING Sub-Categories on Tmall
Chinese consumers in 2021
X
Hangzhou, China
Chinese Consumers: 1970
INCREDIBLE TRANSFORMATION
X
Hangzhou, China
INCREDIBLE TRANSFORMATION
Chinese Consumers: Now
KEY WORDS characterizing the consumer
HEALTH CONSCIOUSTRENDYWELL
TRAVELLEDLIFESTYLE
LOCALIZED TASTE
SOPHISTICATED
QUALITYVALUE DEALS
Consumer & Category Trends on Tmall Global
Popular Categories
• Cosmetics• Personal Care• Health Supplements• Baby Formula
Consumer Trends on TMG
Source: Tmall Global & CBNData. Popular products refer to products often bought by one consumer group but not others. Cosmetics & Food items are popular among all groups.
New Categories & Trends
• Men’s skincare• Pet products• Technology & Beauty Tools• Maternity Products• Sleep aid products
Consumers from less developed areas
43% YOY
<35 Years Old
70%of Total Consumers
Example of TMG MobileHomepage
High Growth Categories on TmallGlobal in 2020
Skin CareProducts
Maternity Products
Technology & Beauty Tools
Pet Products
Health &Wellness
1.2 Millionnew products introduced on
Tmall Global11.11 Global Shopping
Festival 2020
Top Countries 11.11 2020United States | Australia | Canada | France | Germany |
Italy |Japan | Korea |New Zealand | UK
Note: List is in no particular order
Niche ItemsRose WaterCamel MilkEssential Oil
Tmall: where Chinese consumers go to discover brands
How do they shop? Livestream lifestyle
Viya
18.3 million
currently watching
Market overview: in the next five years, mid-age kids and
older children represent the core opportunity
2.0 2.3 2.6 2.9 3.2 3.53.9
4.34.7
5.1
43%
15% 13% 12% 10% 11% 10% 10% 9% 8%
2014201520162017201820192020202120222023
Market size (hundred million RMB)
YoY growth
Sources: iResearch, "China Internet Maternal and Infant New Generation Research Report 2020”; and National Bureau of Statistics, Maternal and Child Research Institute
2012-2020 China Mother-Baby market size and growth rate
2013-2019 Birth rates & proportion of births that are the
2nd child in a family
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
2013 2014 2015 2016 2017 2018 2019
Birth rate 2nd child proportion
Population change forecast 2018 - 2023
0-4 years
10-14 years
5-9 years
Post-90s & post-95s parents account for almost half of our
consumers, and they spend the most
Customer split Proportion of spend
Female Male
2020 Tmall Global Mother & Baby Category consumer groups by
gender
2018 2019 2020
80前 80后 85后 90后 95后
2018-2020 Tmall Global Mother & Baby Category consumer groups
by age
80前 80后 85后 90后 95后
2020 Tmall Global Mother & Baby Category per-customer
spend by age group
Sources: CBN Data, 2020
Opportunity subcategories: alternative infant formulas,
maternity-related products, and baby wash & care
Infant formula
Baby & kids' health
supplements
Diapers / pull-up
Baby wash & skincare
Pregnancy supplements
Baby/ kids' food
Pregnancy skincareGoat Milk Powder
Baby laundry detergentBaby bottle
Baby snacks Weaning & feeding
Mosquito repellant
Breast pumps
Postpartum repair
Special formula milk powder
Tmall Global Mother & Baby Category Growth Matrix
Consumption growth rate
Consumption volume
Sources: CBN Data, 2020
Getting started on Tmall GlobalMim Figueiredo
Tmall Global Mother & Baby
Why choose cross-border eCommerce?
In Mainland China (subsidiary or distributor)
In Mainland China
In CNY
In Mainland China
In Mainland China
Mandatory
Outside of China
In home country
In home currency
In home country
Free trade zone or outside China
Not applicable
Legal entity
Bank account
Payment
Trademark registered
Warehouse Location
Product registration & testing
Product & Brandsfrom overseas
China
Tmall Global helps brands enter the Chinese market throughcross-border trade.
Tmallhelps brands that arealready established in China. Product
& Brandsalready in China
China
Working with Tmall Global
Two options:
Marketplace Flagship Store
• B2C model
• For brands / retailers ready to invest in entering the Chinese market
• Build brand identity and promote your products
Tmall Overseas Fulfillment
• B2B2C model
• Suitable for distributors / retailers selling brands/ products already in high demand among Chinese consumers
Evaluate readiness
Alibaba Group in numbers:Flagship store: preparation
Work with Tmall to find a partner
Market entry prep
Tmall Partners provide full-service eCommerce operations
✓ Shipping & customs clearance
✓ Warehousing & logistics
✓ Order management
✓ Customer service
✓ Translations
✓ Product listings
✓ Social channels
✓ Working with influencers
Work with your Tmall Partner to localise and optimise
Product descriptions
UXProduct range
Customer engagement
Traffic sources
Pricing
Brand awarenessSocial
content
Brand image
Alibaba Group in numbers:
Security Deposit Annual Fees Commission TP Partner Logistics & Marketing
A one-time fee of RMB 50,000* is used as collateral in case of any damages of expenses
incurred under the service agreement with
Tmall Global
An annual fee of RMB 30-60,000,
depending on the main category of the products
A commission of 2 - 5% based on product
categories, plus 1% Alipay service fee per
item sold
TPs charge a monthly fee ranging between
RMB 20,000 – 100,000 plus a commission.
Distribution partners may work on B2B trade
terms.
Depending on the mode of logistics, prices will
vary.
We recommend a marketing budget
equivalent to 20 - 30% of projected sales
Platform fee details: https://bit.ly/3usctzY
*Higher deposit for selected high-risk categories including infant nutrition, OTC healthcare products,
adult products
Flagship store: costs
Case Studies
Ranked within top 5 brands in the category
TenscareUK Maternity Tech
Alibaba Group in numbers:Category star performer in just 2 years
2018 D11 2019 D11 2020 618 2020 D11
Tenscare’s electric success
• Launched on Tmall Global in Nov 2018
• Ranked within top 10 stores in Mother-Baby category in just 2 years
• Hero products:
Alibaba Group in numbers:
Tenscare’s winning strategy
▪ A capable & trusted partner
▪ Leveraging Chinese shopping festivals
▪ Use data to better understand demographics & consumer profiles
▪ Social media & livestreaming with top KOLs
One of top childrenswear brands on Tmall Global
BodenUK Childrenswear
Alibaba Group in numbers:
Entering the Chinese market
▪ Launched on Tmall Global in April 2018
▪ In Asia, childrenswear emerged as top category
▪ Launched on TMG in April 2018 in response to organic demand from Chinese consumers and Taobao sellers
▪ China represents a small but significant proportion of Boden’s overall business with high potential.
Alibaba Group in numbers:
Boden’s winning strategy
▪ Pre-entry market research with Tmall Global & Tmall Partners
▪ KOL livestreams attracting > 7 million viewers
▪ Use of Alibaba’s brand data bank
One of top babycare brands on Tmall Global
Minois ParisFrench babycare
Alibaba Group in numbers:
Positioning and USPs
▪ Most baby moisturisers in the Chinese market are priced at RMB 50 – 200;
▪ Opportunity in the high-end/ luxury space > RMB 200;
▪ Ingredients are pure + naturally scented without artificial/ chemical fragrance;
▪ Fashionable & attractive packaging design.
RMB 298 / EUR 24100ml
Alibaba Group in numbers:
Minois Paris’ winning strategy
▪ TP seeding via Taobao & external social channels;
▪ Built a member community;
▪ Identified ‘KOC’s
