According to Euromonitor, Alibaba Group's TMall, a B2C sales platform solely dedicated to official brand stores selling to Greater China, will overtake Amazon in revenue by 2015. It will officially become the world's biggest e-commerce site, leaving the likes of eBay and other pure-players in its wake.
And, to further cement its position as a key global player, Alibaba Group has just announced a $586 million investment in Sina Weibo - the biggest deal yet for the Chinese Internet industry. In the past, Alibaba's ventures into social and mobile selling just didn't deliver the required results. But this close collaboration between two of the world's most significant platforms is clearly designed to enable them to become the dominant force in social and mobile commerce. It's a win-win situation for both businesses - Alibaba will get the social/mobile reach it requires to generate even greater profits and Weibo will take an important step toward becoming a social business platform.
What this adds up to for brands is that, now more than ever, TMall is becoming a force to be reckoned with on the global digital stage; one that can't - and shouldn't - be ignored.
The digital sales channel for brands in China?
An increasing number of "big names" (Coca-Cola, Nike, Microsoft, Disney, Apple, and more) are looking to the East as a viable and long-term source of revenue, and it's no wonder; the e-commerce figures for China are impressive:
And it's evident that brands with ambitions to expand into China need to consider TMall as part of their strategy:
Currently, TMall has over 70,000 official brands in 50,000 stores and is attractive to businesses for a variety of reasons:
The annual Singles Day sale (an event held on November 11, celebrating people who are still living the single life) shows just how much TMall has grown since 2008, with sales amounting to RMB50 million, RMB936 million, and RMB3.36 billion in the years 2009, 2010, and 2011 respectively, leaping to a massive RMB19 billion in 2012. (Source: Alibaba)
Terms and fees
Besides having impressive sales figures, TMall is a straightforward way to reach out to consumers living remote from tier one cities where foreign brands usually establish a physical presence on entering the market. However, setting up a TMall shop without understanding the Chinese language or having a trusted local partner can be challenging. I'll share the key considerations in part two of my column tomorrow.
Meet Your Favorite ClickZ Contributors
Many of ClickZ's leading expert contributors will be at ClickZ Live, the new online and digital marketing event kicking off in New York (March 31-April 3). Hear from the likes of: Jeremy Hull, Lisa Raehsler, Andrew Goodman, Bryan Eisenberg, Mathew Sweezey, Aaron Kahlow, Stephanie Miller, Simms Jenkins, Jeanne S. Jennings, Dave Hendricks and more!
With a background in running high-profile campaigns for major brands while at Glue, Digitas and now Red Ant, Elisa has spent the past 13 years exploring and developing new ways for global brands including Swatch, MTV, MAC Cosmetics, Samsung, and Ericsson to engage with their audiences. She has worked with clients extensively in the North America, Europe and most recently Asia. Recommended as an expert digital and mobile consultant by market leaders, she is recognized worldwide for her professionalism, integrity and her ability to help brands navigate the increasingly complex global digital landscape.
March 19, 2014