More Australian merchants are using Alibaba’s business to consumer e-commerce platform to cash in on Australia’s reputation as a quality supplier of health and wellbeing products in the Chinese marketplace. Established by Alibaba in February 2014, Tmall Global enables overseas merchants to sell into China online with less risk and lower barriers to entry than traditional exporters. So far Australian companies dipping their toes into the Chinese market via the service include, Blackmores, Pha
armaCare, Bellamy’s Organic, Jessica’s Suitcase, Australia Post, A2, Foodworks, Gaia, JeansWest and Jurlique.
Deputy general manager of Alibaba Group’s cross border B2C division, Maggie Zhou, told Inside Retail PREMIUM that Australia has a very good reputation in China and there is a high level of trust in Australian products, which are viewed as “green, clean and natural” thanks to Australia’s environmental and health and safety credentials.
“Chinese consumers respect the quality of products originating from Australia and are specifically seeking them out,” Zhou said. “Health and product safety is important to them and authentic quality Australian products are now available like never before.”
The best performing Australian categories on Tmall Global include baby products, healthcare products, natural cosmetics, apparel and fresh food. The popularity of these item is clear on the official Australian Tmall Global page, also referred to as a ‘country pavilion’, which was launched last week.
Complete with picture of koalas and the sails of the Sydney Opera House, australia.tmall.com curates online verticals to provide Chinese consumers with a one-stop shop for popular Australian products.
Tmall Global, and the Chinese government policies which make it possible, are designed to satiate the Chinese middle class’ appetite for high quality international goods, while offering suppliers the potential to move enormous volumes.
“The retail opportunity in China is incredible, with the Chinese middle class forecast to reach over 600 million by 2020,” Zhou said. “E-commerce is making transacting with this market possible.”
Jessica Rudd, the daughter of former Australian Prime Minister, Kevin Rudd, recently launched her store on Tmall Global, Jessica’s Suitcase. On Tmall Global the business lists a variety of products for mothers and babies, ranging from certified organic skincare to baby food.
“Tmall Global represents a unique opportunity for Australian businesses of all sizes to have a go in the world’s most exciting market. Jessica’s Suitcase is thrilled to be bringing some of my favourite Aussie products to Chinese families,” Rudd said.
Alibaba’s Tmall Global uses bonded warehouses backed by the Chinese government. Processing products in the bonded warehouses simplify logistics and customs for foreign e-tailers. The inventory isn’t subject to import tax until items are sold to a customer, at which time they are repackaged and delivered by local courier.
Around 5400 overseas brands from 25 countries have opened stores on Tmall Global. The website is now used as a stepping stone into China by a growing number of brands from the US, Germany, South Korea, Japan, Taiwan and Hong Kong.