Alibaba beefing up on international brands over the next year
International brands are to have a higher profile on Alibaba in the coming months.
Alibaba's import-merchandise platform looks to woo more vendors and expedite the introduction of international brands, hoping to bring 1,000 new brands onto its e-commerce platform in the next 12 months.
It's part of Alibaba's five-year plan unveiled at the first China International Import Expo in Shanghai in 2018 to introduce US$200 billion worth of overseas products, said President of Tmall Import and Export Alvin Liu at the Tmall Global Partners Summit.
The e-commerce giant offers a quick brand-registration process as well as a series of tools, incentives and campaigns to help foreign brands flourish in China, ensuring new storefronts open within 30 days of registration.
“We have managed to maintain growth in the first quarter and our expansion plan is still on schedule, because domestic demand is under less impact from the coronavirus crisis," Liu said. "Despite short-term disruptions to cross-border logistics and sentiment for overseas products, we have seen more demand for personal care and health-and-nutrition-related products."
Alibaba will provide overseas brands with critical insight into Chinese consumers’ preferences and develop relevant strategies for their online businesses while also bolstering their offline growth.
The company also offers an incubation plan for new brands that opened on Tmall in less than one year, encouraging them to reach a gross merchandise volume of 1 million yuan within three months.
Businesses achieving sales targets will receive additional benefits, such as commission-fee reductions, and opportunities to participate in special promotional campaigns.
Tmall Global is already home to 25,000 brands from 92 countries and regions and has further strengthened its foothold after its acquisition of NetEase's import product site Kaola last year.
More than 80 percent of these brands are opening digital storefronts before they set up physical stores in China.
Some of the bestselling new international products at Tmall are cosmetics and medical/personal care brands such as Fenty Beauty, DPC and Brandfree.
