If you think your brand is too prestigious for Tmall, think again. Any western brand with China recognition is being sold on Tmall, whether that brand likes it or not. With over 50% of China's B2C market share, Tmall is becoming a must for any western brand with a long-term China plan.
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Too Cool For Tmall
1. F O R T M A L L ?
S O , Y O U T H I N K Y O U ’ R E
2.
You’re a flawless brand that doesn’t want to tarnish your pristine
reputation by selling on some crowded site in China…
I mean, “ ”, what general manager would buy
that kind of marketing proposal?
3. Still, if you choose to snub Tmall, your
products will enter China anyway, through
“daigous”…
“Nearly 60% of Chinese
consumers have made luxury
purchases through ‘DaiGou’
rather than from brands or
department stores,” according to
a study by Bain & Company.
—Business of Fashion, April 2014
4. “Daigous" are sellers who buy foreign luxury products abroad and
then back across the mainland border without paying
import taxes (usually between 30-60%)…
…jacking up the price enough to make a living
while staying well below the official mainland price tag.
5. The problem is, many daigous— like “Buy Fine”— have
large and sophisticated online storefronts, making it nearly
impossible for Chinese to discern real from fake.
6. And such stores will kill your brand by
consistently displaying low sales:
=$1254
0 sales
0 comments
7.
Sure, daigous do help you move merchandise
and bypass legal work in China…
B U T WA I T !
L E T ’ S S E E W H AT E L S E H A P P E N E D W H E N
B U R B E R RY FA I L E D
T O J O I N
T M A L L :
8. It turns out that Burberry is on Tmall anyway… but with
no flagship store, no brand control, and rampant POSERS…
FA K E FA K ED A I G O U FA K E
FA K E D A I G O UFA K EFA K E
…soiling the
reputation
that Burberry
tried so hard
to preserve
by not joining
Tmall.
9. =$187
Not to mention that fake Burberry products are having a
on Taobao, all with positive customer reviews.
11. 1) Realize that it’s COOL to be on Tmall
— Chinese don’t discount brands on Tmall
— Your reputation will improve by joining
2) Create a flagship store on Tmall
— Enjoy brand control
— Flush out fake competitors
3) Join “Weitao”- Tmall’s social media channel
— Enjoy a platform for content marketing
— Improve your brand’s presence & credibility
13. UPDATE: A week after we published this, Burberry decided
to listen, and has just opened their first Tmall store!
You won't be sorry, Burberry.
http://red-luxury.com/fashion/bureberry-opens-store-on-tmall-22025?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+RedLuxury+(Red+Luxury)