Posts

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.
tmall

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.

tmall2

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.

New Consumer Rights Law for Goods Return in China

According to a revised “Consumer Rights Law in China”, online shoppers can now return the goods unconditionally for refunds within seven days of purchase but they have to shoulder logistics cost.

It also lists products not suitable for unconditional returns and refunds, such as digital products sold via downloads, audio-visual goods with the packaging removed, bespoke products, fresh and perishable goods, magazines, newspapers and software.

pic1

 

pic2

Consumers can seek compensation from online trading platforms if the platforms fail to provide contact details for vendors using their networks. After compensating consumers, the platforms are entitled to claim compensation from the vendors.

Each coin has two sides. As to the cons of ecommerce, the brand needs to establish delivery mechanism, set up goods return option and build customer confidence in the market. Especially Chinese consumers are used to the return policy. According to PwC, Total Retail Survey(2015), Chinese consumers concern more about online purchase returns available in-store(74%) than global range(67%). So if you want to expand your market into China through online channels, it’s necessary to have a returns point in mainland China. Also because of this new policy, the rate of turns increases a lot.

So get prepared before you enter China through ecommerce channels.  iQubator is willing to help any international brands to get familiar with Chinese market and consumers and provide customized services according to your own business plan and strategy.