Tmall Global Achieved 100% Growth by More international Brands Entering

In the past year, more than 5,000 new overseas brands have entered the Chinese market through Tmall Global, with more than 2,000 small and medium-sized brands successfully testing the Chinese market to achieve monthly sales of over $15,800.

Foreign companies continue to increase their presence in the Chinese market. At the beginning of the year 2022, it saw a booming of many brands opening their overseas official stores on the Chinese import retail platform Tmall Global including L’Oreal Group’s brands La Roche Posay, VICHY, NYX Professional Makeup and IT Cosmetics.

In 2021, Amore Pacific Group’s HERA and IOPE, which reduced their offline counters, opened stores in Tmall Global after the year, and listed new products through cross-border e-commerce for the first time.

“In the past year, the number of new stores opened by major beauty groups in Tmall Global increased by 100% year-on-year.” According to Zou Xiaoran, general manager of Tmall Global Beauty, the crowd who is keen to buy foreign products is very concerned about “new products” that brands launched it globally. It is the consensus of large groups seeking new growth that incubate new products in the first time and test new brands in cross-border e-commerce.

Take L’Oreal Group as an example, its La Roche Posay and VICHY through the Tmall Global focus on the introduction of new products with “sun protection” and “ingredients-centric skincare”. At the end of February this year, VICHY debuted a new sunscreen primer in the sunscreen category on the platform, which sold out of inventory with 20,000 units in its live streaming within a minute of launch. The turnover of its new followers increased by about 400% compared to its daily sales, leaping to become a Top 2 brand in the Tmall sunscreen category.

“Imported beauty” is a key category for the continuous development of Tmall Global. In September last year, Tmall Global released its annual beauty new brand incubation program, joining hands with large groups, high-quality service providers and investment institutions to incubate new brands and invest more resources and support policies in marketing, new trend incubation and supply chain optimization. In the coming year, it plans to introduce 1,000 new overseas beauty brands and aims to incubate more than 50 new brands with an annual turnover of more than 10 million.

In order to improve the supply chain operation efficiency of cross-border merchants under the pandemic, Tmall Global and L’Oreal Group also cooperated to open up the supply chain operating system of both sides for end-to-end depth collaboration of the supply chain this year. Using digital technology and intelligent algorithms, sales of different scenarios can be predicted, thus assisting brands to better prepare goods from overseas in advance. At the same time, through the docking of the operating system to achieve automatic replenishment, this innovation of supply chain integration is the first of its kind in the cross-border industry.

In fact, the global beauty market is seeing a recovery and rebound. The Chinese market, especially the e-commerce platform, is still accelerating their performance.

Many large group like P&G, Estee Lauder, Coty, LG Household & Health Care recently released their financial reports, which all mentioned the growth and importance of the Chinese market. The performance of Tmall Double 11(Chinese Shopping Carnival) of L’Oréal Group is listed its earnings report. In 2021, L’Oréal became the first group in the history of Tmall Double 11 to exceed 10 billion yuan in sales (about $1.584 billion).

As a new form of cross-border e-commerce, Tmall Global also continues to attract imported brands to explore cross-border market opportunities. In the past year, more than 5,000 new overseas brands have entered the Chinese market through Tmall Global, with more than 2,000 small and medium-sized brands successfully testing the Chinese market to achieve monthly sales of more than $15,800

Compared with the traditional import model, the incubation of new brands and new products through cross-border e-commerce can simplify the research and positioning, declaration and promotion. The flow and feedback cycle of goods entering the market is shortened, which greatly reduces the cost of trial and error, while the improvement of Tmall Global in logistics, warehousing, supply chain and other import service capabilities also speeds up the entry of brands into China.

Tmall Global is a cross-border e-commerce platform under Alibaba. Up to now, there are more than 29,000 overseas brands from 87 countries and 29,000 regions around the world entered in Tmall Global, covering more than 5,800 categories, of which more than 80% of the brands enter the Chinese market for the first time.



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