Made In Quality, Online?

iQubator fashionCounterfeits products has been a major issue for both fashion brand and customers especially in China. According to official Xinhua news agency, it is said that for the past year China sold more than 40 percent of counterfeit goods or bad quality online.

However, it is affect on decreasing the number of genuine or high quality products sold online in result of below 59 percent, which illustrates problem extension that lay down the ‘fast-growing online sector’. In 2014, a number of customer complaints about online orders hit 77,800 last years, a sharp movement of 356.6 percent against 2013. It is such as downcast situation of moving aside customer’s trust on shopping online.

Today, with the innovation of technology and supported by social media platforms and blogs, smart customers are surprisingly more aware and willing to pay in premium price for achieving premium quality of products. Yet, customers in China are keeping on asking question “Why should I pay that much for this kind of products where I can buy it cheaper in ‘these’ website?”. Premium brands are highly valued by some of societies group. The consumption of premium brands activates an aspect, which can reflects the internalization of concepts associated with being a valuable member of society.

Now, it’s not about the quantity, it’s about lifestyle. To get to know what you purchase online, experience original concept of new ideas and design of our International products in high quality production. For shopping online visit: http://www.d152mall.cn/ 

 

by Nabila John

Interview: DFO Showroom Supports Up-And-Coming Fashion Brands’ China Debut

 

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Thanks to a growing emphasis on individual style and the expansion of multi-brand boutiques and department stores such as 10 Corso Como, Galeries Lafayette, and and Lane Crawford, small niche fashion labels are taking off in China.

As a result, emerging lifestyle showrooms showcasing these brands are flourishing in the country as buyers from China and other Asian countries seek out the next hot new label. During the most recent Shanghai Fashion Week, many of these showrooms such as Danube Fashion Office (DFO), ONTIME, and Showroom Shanghai presented diverse international and local fashion brands to the Chinese market.

Each showroom has its own unique angle for the Chinese audience. To learn more about one of them, we had the chance to interview DFO Founder Meimei Ding. Hailing from Taiwan with a strong international background that includes experience in America, Shanghai, Beijing, Budapest, and London for studies in visual design at Central Saint Martins, Ding started the DFO concept by using her strong European market awareness to connect buyers and brands. As a fashion sales agency, retail consultancy, and buying office with headquarters in Budapest and a permanent boutique-style showroom in Shanghai, DFO showcases 30 up-and-coming fashion labels from China, Australia, Europe, and more to about 500 buyers.

In the interview, she shared her expertise and details on her business model to show what it takes to introduce a niche label to China’s fashion marketplace.

The collections vary enormously from one space to another. Can you discuss DFO’s collection architecture and what types of buyers you work with?

The DFO buyers must be professional; they are usually shop owners, boutique owners, buyers from larger groups, and regional distributors. Originally, the collection architecture was based on my knowledge for the Chinese market and personal taste. However, today, almost one third of the collection is driven by the buyers’ direct requests and needs. The reason for this is that DFO helps the buying process from A to Z, starting from communication, logistics, and services. We are a one-stop solution where buyers prefer to experience extended product lines and collections through us.

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Who do you believe are DFO’s top rising brands for China?

We have a flamboyant new indie designer named Dora Abodi; she has a futuristic/baroque style and was recently voted by Vogue Italia as one of the top 100 emerging designers.

In contrast, the Australian brands we’re presenting are very market-driven: Cameo, The Fifth, Finders Keepers, and Keepsake. They do 11 collections a year where they sell 44 times a year with a very friendly price point to the Chinese customers.

Lastly, NUBU targets different, more niche buyers. The brand looks very quiet but it’s actually very strong.

The three different spaces have been constructed to three different clientele types, where one won’t necessarily go to another space and vice versa. For example, the sparkling clutches have done fantastically well in China, where these types of buyers are not necessarily interested in the other spaces were showcasing.

DFO can also act as a buyer on behalf of their client. How have you built these relationships of trust so quickly?

Mostly word of mouth, producing good results, and going toward an open-minded market. When we approach a brand or office in Europe which doesn’t already have a clear and precise strategy, nobody really says no to us if we want to have a conversation.

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What kind of challenges do you face in running a concept showroom for the Chinese market?

Introducing the idea/concept to customers takes time, as there is usually a trial period. When they work with us for the first time, we guide them through every step and act as if they are not familiar with the whole cycle. From the time they place an order to the time they receive the product is a three- to six-month cycle. Organization goes from logistics to communication and product selection support. Our clients don’t speak with the brands; we are the intermediary between buyers and brands to avoid miscommunication.

Can you give us a sneak peek of your future projects for the next six months?

We’ve been speaking to new potential collaborators about next seasons, where we will expand to cater to different segments of the markets. We may also let the show travel to Beijing and Shenzen and not [be] limited to Shanghai only. Given that almost 80 percent of our clients come from outside of Shanghai, a road show would be easier for the local surrounding cities to get to us and vice versa.

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iQubator Fashion meets Louko

On August the 28th iQubator Fashion met Emilie Lobel, French woman founder of LOUKO 路口. Listening to her story gave us the possibility to deeply understand the reasons behind her style and creativity. Looking at her clothes flooded our eyes with beauty and unspeakable emotions.

 

iQubator: What brought you to Shanghai?

Emilie: My husband and I decided to come in China for a new experience in Asia, a part of a world which has always been attractive for both of us. In France I was a legal advisor, but I always loved fashion and the singular Parisian style, so trendy. In Shanghai, I seized the opportunity to start my business in a creative world that pleases and motivates me. My goal was to propose high quality garments, French design and tailor-made, thanks to the small team of tailors who works with me. Then I started to design and produce styles and up to this moment 2 collections have already been brought to the public, in France and in China.

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Qubator: How many collections per year do you do?

Emilie: Two collections per year, fall-winter and spring-summer, each collection usually has 30-35 pieces. I propose a collection and then details can be changed according to my customers’ needs and desires. This way my customers can be somehow involved in the creation process and this I find very important. It gives everyone the possibility to have something special and unique at the same time.

iQubator: Is there an arts style that inspires you more than others?

Emilie: Yes, I am very fond of Art Deco. My creations are all inspired by this visual arts design style born in France in the beginning of the 20th century.

iQubator: Where does your personal style come from?

Emilie: Certainly from Paris. I used to be a business woman myself, so now I mainly design clothes for active business women. My clothes are elegant, but also comfortable, perfect for long busy days, but also for a drink with your colleagues or friends right after work.

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iQubator: How can your customers find you?

Emilie: I very often attend designer markets in Shanghai, but customers can meet me at my show-room based in the ex-French concession where I organize private sales as well. People can reach me by email contact@louko.fr, or via Wechat ID: LOUKO_clothes
For France, my clothes can as well be found on the online store: www.louko.fr and for China, customers can buy them on Wechat.

HOW LUXURY BRANDS CAN REACH CHINA’S ‘CASH-RICH, TIME-POOR’ TRAVELERS

As the number of outbound Chinese travelers continues to rise, their trips are getting shorter.

According to a newly published study on Chinese travel trends by IPK International, the average length of international trips by Chinese travelers nearly halved between 2007 and 2014 even as total travelers rapidly increased. Although Chinese tourists spent an average of 10 nights abroad in 2007, that number dropped to 5.5 in 2014. This decrease was powered by short international trips lasting three nights or less, which grew by a staggering 444 percent in that time period, while the number of longer trips declined.

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These statistics mean that Chinese travelers are “cash-rich,” yet “time-poor” on their trips—which illustrates how luxury brands must aggressively compete to become worthy of travelers’ limited time. The good news is that 80 percent of international Chinese trips are currently for leisure, and shopping remains a favorite activity.

There are several key ways brands can reach short-term travelers. First, creating a quality experience is key—the report found that Chinese travelers are increasingly shelling out for first-class hotels, with 55 percent opting for luxury lodging and fewer spending on budget accommodations. This means that experiential luxury is becoming a growing priority, and it’s not just hotels, but boutiques that need to respond to this trend.

For luxury brands, a significant presence in top Chinese travel destinations is crucial, and this means they need to look to Asia. Shorter flights make the region a popular destination for Chinese tourists with limited travel time—according to IPK’s study, Asia accounts for 68 percent of all trips by Chinese travelers. This was followed by Europe at 18 percent, Australia/Oceania at 9 percent, and the rest of the world at 5 percent. Brands should also make sure they have a presence in top Asian cruise stops—over the past seven years, cruise participation among Chinese travelers has increased by over 1,300 percent, and these sea-bound tourists are doing serious shopping when they disembark at ports along the way.

With such short travel times, Chinese tourists often conduct significant research prior to their trips—including what products they’ll be buying. To reach these travelers, brands need to have a strong digital presence that makes it easy for them to research store locations and product information before they leave. This includes not only information on the brand’s official website, but a comprehensive WeChat account that offers product descriptions, a global store locator, and customer service live-chat that can address requests regarding any region in the world.

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Wanna drive Chinese tourists to your shop? iQubator,based in Shanghai,China, can promote the overseas shops of the international brands through Chinese Social Media and own website to increase awareness of the brands in China.

Don’t hesitate to contact us now !

(source: http://jingdaily.com)

Fashion find-French Fashion in Shanghai

French Fashion is really a hot topic in China. We came to visit Madame Shanghai (No. 284 South Xiangyang Road, inside Shanghai French Concession) the other day during this hot summer in Shanghai. There iQubator team met Justine, the founder of Madame Shanghai, and also did the interview with her.

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Entrance of the shop

iQubator: When did you start your business in Shanghai?

Justine:I arrived in Shanghai seven years ago. But first it was for my school, I was in a business school in France and I came to Shanghai for a two-year exchange program. For two years I was doing international management. I loved Shanghai so much so I decided to stay longer. I worked in foods and hospitality industries first, and then I went on to study Chinese. About two years ago I had the idea of opening this shop. In Shanghai there are many fast fashion chains such as H&M, Zara, but there aren’t many independent designers or smaller brands. Between the mass production fast fashion and the luxurious brands such as Louis Vuitton or Chanel, there is no middle ground. So I opened Madame Shanghai. All the brands I carry in my shop are quite famous in France. You see many French girls dressed in these brands. I wanted to introduce these brands to the Chinese market. The store was officially opened nine months ago.

iQubator: Why did you choose to start a career in Shanghai, China?

Justine: During my first two years of studying in Shanghai, I loved the city so much. When I first arrived, I was only 20 years old, so I feel like I have grown up here in this city. It’s my home now.

iQubator: Where do you find the brands and products?

Justine: When I decided to open the shop, I asked my friends in France to help me select the brands because I was in China for 5 years and I was not aware about the trends anymore! To buy the collections, I go to Paris twice a year, to meet directly with the brands at their showroom, or during fashion fairs.

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iQubator: How do you think the brands in your store fit the Chinese market?

Justine: I’m still discovering and learning. When I first opened the shop, I got positive feedbacks from the customers. It’s really popular among the expat community because they know of the brands, and the Chinese customers started picking up and liking it more and more. The brands are French, young, new and colorful.

iQubator: What differences do you find between the foreign and the Chinese customers?

Justine: The Chinese customers are very interested in the quality, they always ask about the materials and the fabrics. They are also very interested in styling. For example, if they find a skirt that they like, they will ask me how they can find a top that goes with it. They are more picky, and they ask more questions. The foreigners are more independent, they don’t ask many questions normally.

iQubator: How do you explain your style?238301517987452014

Justine: I think my style is really French actually! Which means, it is really simple. I love confortable but fashionable clothes. Black is my favorite colors to wear, it is easy to match with everything. This summer, I love jumpsuit, they are really convenient when I don’t know what to wear in the morning!

iQubator: How is the sales going?

Justine: It’s getting better and better. In July it’s a bit slow because many people are on holiday.

iQubator: Through which channels do you promote your store?

535846396854562511Justine: For my foreign customer group, I mainly focus on Facebook and Instagram. And for the Chinese, I have two WeChat accounts. I have a personal account and an official account for my store. I would post articles and interesting sources about my store.

 

iQubator: Do you have promotions in the store?

Justine: I mainly organize events, and I have a rooftop terrace. Where I gather some friends and customers, and I offer wine onsite. I also participate in the designer market. I just participated one in The Cut last Sunday.

 

iQubator: What is your favorite piece in the store?

Justine: Can I only pick one?! (laugh) I will pick top three.162452048592468890

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iQubator: If you were a color, what would it be and why?

Justine: My favorite color is actually pink… You can see that everything is pink around me, from my pens to my iPhone case! It must be my inner child speaking. I never dress in pink though!

iQubator: What is your soonest project coming up?

Justine: I’m hoping to start some sales and offer some discounts, get the sales going during the slow month.

iQubator: Have you thought of opening up another store or expanding into other cities?

Justine: At the moment, I want to focus on this one and maybe move to a more convenient location. But in the future, of course I expect growth and expansion.

 

 

Interview with the designer Fernanda Sung

A few weeks ago, iQubator went to a design market in Shanghai. There, we had the luck to meet the lovely Fernanda Sung, a beautiful, young lady from Brazil. She is a jewelry designer and is quite new to the Chinese market. Not only her cheerful appearance but also her gorgeous designs were standing out in the crowd. We had to ask her for an interview and she was so kind to accept it. This week’s designer talk with Fernanda Sung.

iQubator: First of all thank you Fernanda for coming today! So let’s start with the first question, and let’s start from the beginning.  When did you start to design your own jewelry?

Fernanda: I started designing jewelry when I was still in Brazil. I loved accessories since fernanda products 5I was a kid, and I really liked to work with my hands so I was always doing this kind of stuff. Professionally, during college I majored in accessories and jewelry design. In the beginning I had two other business partners which were my colleagues so we came up with a brand and started to work with a supplier and tried to understand the industry a little bit. We were working together for about 1 or 2 years and then afterwards, when we graduated, I moved to Italy to study packaging design and when I moved back to Brazil, I set up my own brand. After a while, I moved to China to study Chinese. I was working a full-time design related job, but I wanted to go back to my passion so I quit my job and officially launched my own brand.  So I guess on and off, I have been designing jewelry for about 8 years.

 

iQubator: What brought you to design?

Fernanda:  Since I was a kid, I liked drawing and crafts in general, so I’ve been always doing this kind of stuff. I heard about this jewelry design course when I was applying for college and I decided to just go for it. From there on, I fell in love with designing. Most of the times, I do fashion oriented jewelries but back in Brazil, I used to have more diverse products so I work with local communities  doing crafts and more conceptual. I think a little part of me have always loved design and creative, and there are just so many possibilities. It’s not just about the jewelry, it’s about everything. It’s about the way you see things and present them.

 

iQubator: Where do you draw your inspirations from?

Fernanda: I guess most of my inspirations come from nature, from Brazil. I think especially for jewelry. I also really like art deco so I had a collection that is in Brazil that was inspired by art deco. I guess for the most part it comes from growing up in Brazil and the closeness that I’ve always experienced with Brazil. I want my collections to send out happy messages that are derived from the nature of the planet and humanity.

iQubator: How do you think your brand fits in the Chinese market?fernanda products 4

Fernanda: Oh wow that’s a tough one. I think adapting is the key. In Brazil, people wear really big pieces and that’s not really what goes on in China; jewelries here are usually very delicate. But one thing I like about the Chinese market is that there so are many people and different styles in China so there’s potential for everything. I’ve been trying to make some products little bit smaller than what they would be in Brazil, add a bit more delicacy in them. Another good thing is that Chinese consumers are quite adaptive as well. Sometimes people want to have a big piece or something that brightens up their day. So in the Chinese market, it’s a constantly learning and changing process.

iQubator: Here’s a more personal question; what do you have in your closet?

Fernanda: Normally, I like to wear a lot of skirts and dresses. My summer clothes are usually very colorful, so I have all these flowery dresses and just colorful pieces. And during the winter I wear all black because it’s so easy, it fits the season and I think it also goes really well with my designs; I try to wear my own design as often as possible. I like to match bright shoes, with a basic outfit. If I have something colorful it also pops comparing to the black color.

fernanda products 3iQubator: Among your collections, what is your favorite piece and why?

Fernanda: Haha it’s hard to pick a favorite one. Currently I really love my new collection, especially the ones with tassels because I love the colors. It’s a very trendy look at the moment.

The previous collection that I really love was my art deco collection that I made in Brazil. They were bigger pieces, there was an onyx stone and they were all gold coated, so it was like black and gold. They were beautiful and it was really a nice experience to work with them because in Brazil I used to have a little different brand purpose than in China. It was nice to have that collection, that is a little bit more special and it’s also not an absurd price for what it is.

iQubator: Are you planning to go back to Brazil in the future?

Fernanda: I don’t think I will live in China forever. Don’t get me wrong, I love China.  But I think the place I’m going to settle down eventually is going to be Brazil since I have my friends and family there. But I actually really like Shanghai so I just want to stay here for some time. I don’t have any plans to go back now. I’m starting my brand here and I’m very excited about where it will go. I want to settle down everything here first, and eventually I will go back to Brazil. It’s a place close to my heart.

iQubator: How do you explain your style?

Fernanda: For the jewelry I like to say they are pieces that whimsical, bright, and happy. And this also relates to my personal style. I always like to make people smile. I like to believe if you’re nice to people, you just smile to them and brighten up their day, the energy passes on forever. Everybody has their bad days and I’ve probably not been nice to someone, but I try to keep it positive and I try to make my pieces also about that. So I would say a little bit whimsical and playful sometimes they have a smart twist, like those animal earrings, that the tails are also the hooks.

I was in China and I was watching this documentary, it was a festival for Brazilian fernanda products 4documentaries and one of the women who was talking, was wearing one of my earrings! And I don’t even know her. It’s just really amazing to know there’s a bunch of people who are going to buy your product and they’re really going to wear it. Because sometimes it’s just an impulse but I want people to wear it every day and become their favorite piece and feel special when they have it. The style is also about that, it’s about feeling special.

iQubator: If you want customers to reach you how should they contact you?

Fernanda: I’m building my website, I’m selling into shops in Shanghai, one of them is called “Hey Jewel”, they are in Huating Lu near Huaihai Lu. They are a jewelry boutique so they sell jewelries from designers from all over the world. They also have a Taobao shop so anyone can find my pieces online. They’re selling the newest collection right now and the animal collection. The animal collection will probably be in other shops soon too because everybody just loves it. So I have these two shops, also people that I meet I add them on Wechat. That’s why I am going to open a Wechat shop as well. So they can reach me through either my website or wechat, or they can find my collections in those two shops as well.

fernanda products 1iQubator: Do you design from home or do you have a studio?

Fernanda: I always make the first piece in my home studio. I make the mother mold by hand and I make it on my own. I like to make the first piece by hand; it adds something special and since the pieces are very organic I don’t like doing it on computer.

I make the first piece and then I have a supplier in Shanghai and they take a mold and reproduce what I’m doing. I also have a few pieces that are 100% handmade. This one, just on production took maybe 2 hours. And you might think, okay, it’s a ring, 2 hours it’s not so much, but if you think there are so many and you have to solder and cut and send it. There are a lot of processes involved. And sometimes I just have to leave the product in salt water and that also takes some time. I prefer to work with my manufacturers; they also guarantee that every piece is going to be the same. And of course I’m very strict about quality control.

iQubator: Was it difficult in the beginning when you came to Shanghai?

Fernanda: Yes. Actually, like I said, I started my brand here after I’d been here for a while but I think it’s always hard to start up a brand even in your own city, your own country and if you’re abroad it’s even more difficult. My Chinese is basic, I can speak. I speak Chinese to the suppliers but there are still some parts of the production where you have to get it right. It’s about everything, my network here is not as good as it was in Brazil, my knowledge and my network with the suppliers is not as good as in Brazil, the words itself, how to explain is different.

It’s definitely a challenge but I’m also enjoying it. Shanghai is a very business oriented city so once you put yourself in this position that you want to make it work, things happen really fast.

iQubator: So we met at the design market, is that how you usually advertise?

Fernanda: Yes, I went on holidays and came back from Brazil. I spent almost 2 months there. So I came back at the end of March and since then I’ve been trying to apply to more and more markets. It’s really nice to get to know people because it’s not just clients, people that go there to buy immediately but there’s also a lot of interesting people that are just curious, maybe they work at a magazine, maybe they are like you (iQubator). It’s really nice. I’m trying to do more and more of this kind of markets to get to meet more people.

iQubator: Do you advertise through other channels as well?

Fernanda: I’m starting to work with social media. But it’s a learning process.

iQubator: If you were a color, what would you be?

Fernanda: Oh god, I don’t know. I never had an answer for ‘what’s your favorite color?’ because it depends. But this time I will choose green, a bluish green kind of similar to turquoise. I also chose it for because it’s a bright, happy and positive color.

iQubator: What are your upcoming projects and plans?

Fernanda: I’m looking forward to experiment with other materials and silver.  Like I have this collection that is not only silver, there are these tassels. Actually in China there are so many interesting materials to work with and I think my next project will be a new jewelry collection with some other material, and silver of course but just trying to explore more varieties. I’m excited.

 

 

 

Fashion Week Berlin is back

Fashion Week Berlin is back in the capital of Germany! From 07 to 10 July the new looks for spring / summer 2016 will be presented on the Mercedes-Benz Fashion Week Berlin at the Brandenburg Gate. Four days long everyone’s attention are directed to the capital and Berlin is once again the hot spot for national and international fashion.

In addition to established fashion labels also promising young talents show their trends for the coming summer season. Berlin makes the start in the international look calendar for the Spring / Summer season 2016. This is followed by the Fashion Weeks in New York, London, Milan and Paris.

Here is a short summary of the best looks of the first and second day.

Enjoy!

DAY 1:

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Left: ALEXANDRA TAMELE, Right: BRACHMANN

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Left: MARC CAIN, Right: MARCEL OSTERTAG

 

DAY 2:

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Left: ANJA GOCKEL, Right: ESTHER PERBANDT

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Left: HIEN LE, Right: HOLY GHOST

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Left: KILIAN KERNER, Right: LOUISE FRIEDLAENDER

 

[Daimler AG 2015]

 

New Opportunities for Cross-border E-Commerce

In 2014, China’s total number of internet users reached 649 million (CAGR 17.5%) while number of online shoppers grew to 316 million (CAGR 32%), which is roughly the size of the entire US population.iloveshopping

E-Commerce accounted for 10% of China’s total retail sales in 2014 and has been forecast to reach 20% by 2017.

 

According to Steven Zhong, associate director of PwC Operations Consulting Department, over half of Chinese consumers use e-commerce to shop with overseas retailers particularly for clothing.

ladysittingoncomputerThe Chinese government has relaxed policies on customs and foreign exchange to spur cross border shopping.

 

Cross-border commerce accounted for 14.8% of China’s total foreign trade in 2014 and is expected to climb up to ¥6.2 trillion (US$ 1 trillion) by 2016. Innovative projects like the cross-border E-Commerce pilot zone in Alibaba’s heartland, Hangzhou, will fuel the development, setting the standard for procedures and supervision of E-Commerce transactions including tax refunds.

 

The launch of Tariff Free Zone (TFZ, 保税区) is a big step forward of cross border ecommerce in China.

4 characteristics:

  • No Chinese legal entity required for overseas companies
  • Receive sales proceeds in foreign currency
  • Reduced customs duty
  • No income tax

 

 

 

Tmall Continues To Lead Ecommerce in China

tmall1According to Steven Zhong, associate director of PwC Operations Consulting Department, by 2018 China is expected to eclipse the US as the world’s largest B2C ecommerce market. With more spending shifting to mobile, Tmall’s dominance is expected to continue.
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According to iResearch and Emarket(2014), Tmall dominated both online and mobile channels.

Tmall International, as a branch of Alibaba, was officially launched in 2014.

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Tmall International has stricter specification for retailers in order to provide high-quality services to customers.

First of all, the retailers on Tmall International should be an overseas legal entity. Further, it is preferred if the overseas entity operates for over 2 years with annual revenue over USD 10 million.

The overseas entity must be the brand owner or authorized brand agent with a full documentation of purchase vouchers.

What’s more, the after service and goods return recipient shall be provided in mainland China. Services that iQubator Fashion can provide if you are eager to sell on Tmall International.

Nowadays, cross border ecommerce is a hot topic in China, and therefore Alibaba has focused more on cross border ecommerce. It will be more likely and easier for international brands to get into China through these channels.

Latest Duty Regulations in China

Duty regulations are changeable in China. As the cross-border ecommerce is becoming more and more popular, the Chinese government also tries to catch up with this trend.

As we all know, there are several types of cross border ecommerce. The first one is sales though a global website, the second one is sales through bonded warehouse and the third is sales through a Chinese website.

In the first two cases, if the imported packages by mail for personal use have a total value of RMB1, 000 or less, or the package only contains 1 article with the exceeding RMB1,000, China Customs uses an “assessed value” approach to impose customs duties.chinacustom

There are 4 ranks of customs duty rates (i.e. 10%, 20%,30% and 50%). And articles having a customs duty payable of RMB 50 or less can be imported free to duty (Personal Parcel Exemption), unless the articles belong to “20 commodities prohibited from duty exemption”, such as camera and TV. There is no VAT for this type of cross border ecommerce.

On the other hand, if the imported package by mail having a total value exceeding RMB 1,000(except for only 1 product contained),it should be regarded as a “general goods”, rather than as an article for personal use purpose. Duty and VAT are payable based on the commercial value of imported goods. The duty rates are based on the HS codes of the imported goods.

Starting June 1, imported goods such as skincare products, cosmetics, sneakers, diapers, and other daily use products will become less expensive as tariffs will be reduced by almost two-thirds in some cases.

Revised taxes on imported goods include: a 7-10 percent tariff on Western clothing goods, down from 14-23 percent; a 12 percent tariff on footwear, down from 22-24 percent; a 2 percent tariff on cosmetics, down from 5 percent; a 2 percent tariff on skin care products, down from 6.5 percent; and a 2 percent tariff on diapers, down from 7.5 percent.

The Ministry of Finance explained the temporary adjustments are intended to stabilize economic growth and stimulate domestic consumption.