Tmall Global unveiled two key initiatives that further Alibaba’s plans to bring $200bn worth of international goods into China over the next five years.
The initiatives, the Centralized Import Procurement (CIP) and Tmall Overseas Fulfillment (TOF), are import solutions offered by Tmall Global to help international brands accelerate their entry into China.
Alibaba unveiled the CIP program as a key part of Alibaba’s new retail business. By leveraging the six procurement centres Alibaba has set up across the globe, the program sources imported goods for all the online and offline outlets within the Alibaba ecosystem. The program is reportedly a quick and low-risk way for international brands to enter China, allowing them to reach the nearly 700m active users on Alibaba platforms.
TOF is a consignment solution that allows brands to place a small batch of products at one of the TOF centres to be sold on the Tmall Global platform. This gives businesses around the world a chance to try out and fine tune their product assortment before making a full entry into China. TOF centres are currently available in Japan, South Korea and the US, with plans to expand into Europe later this year.
To support these new initiatives, Alibaba’s smart logistics network, Cainiao, will continue to expand its network of bonded warehouses in China, with an aim to triple its total size to 3m sq m in three years.
Furthermore, recognizing young Chinese consumers’ love for content, Tmall Global will continue to offer brands a raft of content-generating tools to boost brand awareness. By tapping into Alibaba’s own digital-media channels, such as Taobao Livestream, brands can directly speak to Chinese consumer through multiple touch points, including livestream services, videos and testimonials by popular influencers and key opinion leaders.
Source: Alibaba Group
