Tmall.com is the biggest open business-to-consumer (B2C) platform in China enabling businesses from all over the world to reach the Chinese vast and growing consumer market. With more than 60% of the market share and over 850 million monthly active users, the platform has established itself as the destination for quality, brand-name goods catering Chinese consumers’ requests.
Tmall offers 3 solutions to help international brands accelerate their entry into the Chinese market and take advantage of the country’s high demand for top quality products.
- Tmall Overseas Fulfillment (TOF): It is a consignment model that allows brands and suppliers to test the China market for sales potential in the most efficient and cost-effective way.
- Tmall Direct Import: where Tmall Global becomes the distributor or buyer. This model is ideal for selling SKUs already popular among Chinese consumers.
- Tmall Global Platform: a brand flagship online store to sell products directly to Chinese consumers.
These solutions do not compete with each other and cover all the business perspectives: from overseas fulfilment, testing new products, getting some initial sales data and feeling confident that they will be successful on the target market, all the way to direct exporting and opening a flagship store.
Today we deepen the TOF model. What is it? How can merchants benefit from using it? Let’s find it out.
What is TOF?
Tmall Overseas Fullfilment is a consignment solution conceived to help foreign brands targeting the increasing middle-class customer base and test China market for sale’s ability. It’s the most suitable solution for products with low brand recognition in China that allows brands to benefit from the company’s global warehouse network, currently in the US, Europe and Asia. So before making a full entry into China, foreign brands have a chance to sell a small part of their products on Tmall Global platform, by placing it at one of the TOF centers products. Products are then listed on a self-operated store by Tmall Global.
What are the benefits for brands who choose TOF?
– It uses a consignment model to optimize and test product assortment
– It has low entry barriers and low operating costs
– It simplifies exchange and refund of products in home country
– It uses foreign storehouses for direct implementation to consumers
– It offers low logistic and storage expenses for suppliers
– It provides full access to Chinese customers who are looking for foreign production
What are the top categories for TOF?
Tmall Overseas Fulfillment represents a big opportunity for certain categories. It adopts an invitation method to bring brands on board. Invited suppliers register accounts, submit qualification documents and pass Tmall Global verifications to become certified partners. Only then, they can start submitting product offer information in the system.
The top categories for TOF solution are:
– Mother & baby: kids wear, maternity supplements, school accessories
– F&B: liquors, wine, French top brands
– Healthcare: OTC products, functional food, adult products.
For other brand categories there also is an opportunity to engage with TOF team and start exploring for more potentials.
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