Opening a China Online store
The largest online market in the world
In 2016 China surpassed the United States of America in total online retail sales with a figure of roughly $750 billion in sales. Single’s Day, on November 11 (11/11) is the largest online shopping event in the world. In 2016, Tmall reported a record of $17.8 Billion USD in 24 hours. Up from $5.8 Billion USD on 2013’s Singles Day. E-commerce in China is in three words: big and growing. Taobao, Tmall, JD, and WeChat make up the tier 1 online shopping platforms, but China’s e-commerce environment is home to a rich variety of many more specialized online stores. Esteemed foreign brands tend to focus heavily on Tmall, JD, and WeChat for online commerce. Taobao, despite being the largest C2C online sales platform, has it’s drawbacks due to a lack of retailer regulations and fake products.
Brands starting virtual stores on Alibaba Group’s business-to-consumer platform Tmall.com will get access to Chinese third-party service suppliers that may facilitate with supplying and storing. Brands on Tmall.com also are able to provide Alipay, a Alibaba cluster connected e-payment company, as a payment choice for Chinese shoppers. Tmall.com’s dominating reach in China’s e-commerce landscape meant that the majority international brands wanting to enter China’s e-commerce area have thought-about setting up stores on Tmall.com.
Tmall.com, that has over five hundred million registered users, hosts over a hundred,000 brands on its platform, of which 2,000 of them area unit foreign brands like GAP or NIKE. whereas some foreign brands like British apparel firm, ASOS and Apple operate their own flagship e-commerce stores in China similarly as a Tmall.com store, different brands like jeans-maker Levis solely encompasses a Tmall.com store as its main e-commerce presence within the country. in line with Forrester, “many brands see way more revenues driven by Tmall than on their direct-to-consumer sites”.
Tmall (formerly Taobao Mall) is Taobao’s well-polished younger brother and the largest B2C e-commerce platform by sales revenue in China holding 55%-60% of the market share (2016). In 2011, Tmall split separately from Taobao to focus on legitimate online stores by raising service fees. The move successfully rid the platform of fakes and poor customer service. Requirements for opening a Tmall store:
- Enterprise registered in China for at least 2 years.
- Bank Account & Allipay Account
- ICP license
- Refundable security deposit
- Flagship Store: ¥100,000 for ™ (Trademark), ¥50,000 for ® (Registered Trademark)
- Franchise Store: ¥100,000 for ™ (Trademark), ¥50,000 for ® (Registered Trademark)
- Specialty Store: ¥150,000 for ™ (Trademark), ¥100,000 for ® (Registered Trademark)
- Flagship Store of a multi-brand marketplace: ¥150,000
- Specialty stores that sell goods produced outside of Mainland China and the trademarks of those goods are not registered in China(Fruit, import products, etc): ¥150,000
- “Book/Audiovisual” primary category Flagship store and franchise store: ¥50,000
- “Book/Audiovisual” primary category Specialty store: ¥100,000
- “Service” and “E-tickets” primary category operators: ¥10,000
- “Online Gaming and QQ”, “Mobile Fees”, and “Travel” primary category: ¥10,000
- “Medicine/Medical Service” primary category: ¥300,000
- “Cars and Car accessories” primary category: ¥100,000
WeChat’s impact on people’s daily lives in China has been nothing short of immense. After successfully implementing WeChat Pay across China, it was only natural that an e-commerce side to WeChat was coming. WeChat online shopping received a major financial push in early 2015 to drive the payment function and more people to buy on WeChat. Today WeChat is a major and growing party in the online market
JD mall is the second largest B2C commerce platform and Tmall’s main competitor with 20-25% of the market share and revenues of 182 billion Chinese yuan ($26 billion). The company was founded in 1998 although it’s name would not become JD until 2013. JD differentiated itself with multi-lingual and cross-border service. Requirements for opening a JD store:
- Enterprise registered in China for at least 2 years.
- Bank Account & Allipay Account
- ICP license
Taobao is a sub-division of Alibaba and Tmall’s older brother. Around 80% of Chinese online shoppers use Taobao, and with over 800 million product listings it is China’s largest online marketplace featuring C2C, B2C, and B2B e-commerce. Requirements for opening a TaoBao Store:
- Chinese Bank Card & Allipay account
- ICP License (for B2C & B2B)
- Tmall.comEstablish business entity
in Mainland China
- On-the-ground operations to reach
- Tmall.comPresence in Mainland China: 3 years+ OR sufficient expenditure to gain traction in China’s market
- Operations location: Mainland China
Stock Location: Mainland China
- Tmall.comApparel brand X has been selling offline in China for 5 years and has already built up a following among their target market. Brand X will soon open a Tmall.com store to introduce their product to a wider audience.
- Children’s toy brand Y has been manufacturing product in China for foreign markets and would now like to try selling their branded toys to the Chinese domestic market. Brand Y would open a Tmall store and utilize their local inventory for fulfillment.
- Electronics brand Z is looking to break into China’s market. They have a multipronged approach to open physical stores in mainland China as well as market to and reach consumers online. With their China branch office in place, brand Z is well positioned to increase their online presence with Tmall.com
SETTING UP AS AN INDIVIDUAL
A scan of your passport
A Personal Bank Reference Letter, only stating no bad record.
Choose a name for the your China WFOE
Choose a location for the company in China
SETTING UP AS A HONG KONG COMPANY
Notarized copy of Passport of Director and Company Registration Certificate
Hong Kong Company Registration Certificate
Hong Kong Company Bank Reference Letter
The Hong Kong Company will then be the Holding Company for the WFOE
We can set up a Hong Kong Company in about 5 days More info
SETTING UP AS AN OVERSEAS COMPANY
A Passport Scan of the Director(s)
A Certificate of Company incorporation
A Company Bank Reference Letter – stating no bad record
All Documents need to be notarized by the Chinese Embassy.
This way is good for a Representative Office, but a Hong Kong Holding company is more suitable WFOE
Tmall Global Entry Channels
- Tmall GlobalOperate businesses locally
- Fulfill orders internationally
- Tmall GlobalPresence in Mainland China: 0-2 years
- Operations location: Mainland China or abroad
- Stock location: Abroad
- Tmall GlobalPremium fashion brand A is eager to expand into the China market but reluctant to take on local inventory risk. Tmall Global allows brand A to enter the China market while removing this risk.
- Baby formula brand B has noticed a recent increase in overseas purchase demand for their product. Tmall Global offers brand B the opportunity to reach these consumers.
- Specialty food brand C had previously thought selling finished food product directly to the China market to the impossible. Tmall Global enables brand C to bring their locally famous product to Chinese shoppers.
There are a few ways to set up a Tmall Store
Set up a Wholly Foreign Owned Enterprise in China and use that to own your Tmall Store
Set up a Wholly Foreign Owned Enterprise in China and purchase an exiting Tmall Store
There are mainly three types of set up costs, Government license fees , Consulting Fees for the Registration of China Consulting Company
Tmall.com – the most important B2C platform in China
Tmall.com (天猫) is that the primary selection of Chinese on-line customers becomes Associate in Nursing all-in-one and full-featured ecommerce platform. China’s strongest leader Tmall operates it’s services in China,Hong Kong, Maccau , Taiwan by Alibaba cluster. it’s a serious platform for native Chinese and international businesses to sell 100 percent real product, premium quality & whole, high-Speed delivery , Product assurance and guarantee of returns to customers in Communist China. the large on-line searching platform “Tmall” created record with two.85 Million transactions per minute in 2014 has been documented three times growth than last year. Total sales on No eleven, 2014 was fifty seven.11 billion RMB ( among that twenty four.33 billion RMB is from mobile end).
Tmall is fittingly named, an enormous assortment of individual stores in one place and empower the seller in building loyalty, and providing full transparency to it’s client further as whole premiumness. Tmall create Associate in Nursing ever-more compelling case for China on-line sales than a complete web site.
How massive is Tmall?
Tmall, China’s no. one B2C platform is enabling businesses to sell on to voluminous customers throughout China since it’s institution in April 2008.
more than70,000 international and Chinese brands
more than fifty,000 merchants and outlets
access to a hundred and eighty million patrons
Corporation China Tmall operator
Tmall has become vital for doing e-commerce in China.
Corporation China is certified Tmall operator China , which implies Tmall acknowledges United States as in operation agent in China, we will build & operate your Tmall store. we tend to build your store tailored to your whole.
Tmall Store Format
Tmall has three completely different store format :
From Merchants purpose of read Tmall permits native merchants or retailers to gift product
Brands have opportunities to push their product through largest on-line platform wherever eightieth of Chinese patrons purchase product
Merchants get chance to push their product in Tmall official promotional campaigns, double eleven etc.
Merchants can have access to group action management, promotional management, supplying tools, product free, look decoration and management, client service management etc.
Highly happy store can get competitive store rates from shoppers betting on the merchandise quality, delivery speed, potency of store or client service etc.
Customer’s expertise on Tmall
Tmall provides facility to it’s patrons to ship orders among seventy two hrs when inserting orders.
Buyers can have full chance to come the merchandise & get refund among seven days of receiving product
Shoppers will search product and find competitive result associated with the search
Users will have complete info of product within the detail page and might communicate with Tmall client team
Buyers get facilities to pay through their own Alipay account
Tmall provides authority to merchants from coming up with to operation to supplying – a whole autonomy B2C service to Chinese merchants
Are you eligible to become a businessperson in Tmall Global?
Entry needs for Merchants
The enterprises should have Chinese business license and tax registration certificate.
The enterprises should offer real and valid business documents ( letter of authorization ,registration certificate etc.)
Tmall won’t settle for application from individual business, firms from outside China or those that don’t seem to be holding trademark registration certificate issued nby trademark workplace.
Brand that is that the same or the same as the prevailing brands in Taobo/Tmall/Yitao,etc don’t seem to be allowed to open store in Tmall.
Legal Terms & Condition
-Enterprise agency have an interest to business with Tmall should hold a legitimate business license copy with the entire examination certificate reassuring real and valid product .
-Company should want business tax registration certificate (tax, property tax etc);
-Organization code certificate
-A copy of the checking account permits
-Legal representative ID card copies of either side
-Contact ID card copies of either side
-The business should issue a letter of authorization to Alipay, permitting Alipay to act as Associate in written agreement service on their behalf.