Alibaba Group’s Tmall Global has built a cross-border platform serving over 100 million customers in the last ten years.
The business has been at the center of a surge in cross-border e-commerce into China, helping brands from British beauty devices brand CurrentBody to Australian health products producer Blackmores reach China’s consumers.
As always, logistics plays a crucial role in e-commerce. Over 70% of Tmall Global’s cross-border goods are stocked in warehouses in China’s biggest cities, making next-day delivery possible for over half of its orders.
We look back at the major milestones from launch to running China’s largest platform for imported goods.
Early 2000s
The bad old days
Chinese consumers struggle to shop overseas, surfing websites written in a foreign language that accept only foreign credit cards. After making purchases, consumers must line up logistics to deliver parcels to China.
Shoppers resort to asking friends traveling abroad to buy coveted items on their behalf and carry them back in suitcases. Professional buyers, called daigou, flourish.
February, 2014
Enter Tmall Global
Tmall Global officially launches in February, 2014 after laying the groundwork in 2013. The platform starts with 100 overseas brands.
Its launch coincides with growing policy support for cross-border e-commerce. In 2014, the term “cross-border e-commerce” is included for the first time in a government work report. China pilots cross-border e-commerce retail import business in six cities, allowing shipments from bonded areas.
Tmall Global sets up bonded warehouses, helping overseas brands connect directly with Chinese consumers by shipping products before sale.
The biggest customers are mothers purchasing overseas-branded baby formula after food safety scares.
Japanese toilet seats are also hot items, as tourists balk at carrying hefty items home.
2016
Canada joins 18 other country pavilions on Tmall Global.
Policymakers clarify how they would supervise and tax cross-border retail imported goods, providing guidelines for the development of the industry.
Tmall Global introduces business procurement centers to facilitate direct engagement and collaboration with overseas suppliers.
2018
Tmall Global changes how it onboards overseas brands, shifting from an invitation-only model to an application-based approach.
Kim Kardashian, the reality TV star and social media influencer, sells out of her name-sake brand KKW perfume in a few minutes during a livestream, drawing 13 million viewers for her Tmall Global debut.
Tmall Global launches Tmall Overseas Fulfillment, where products are listed on Tmall Global stores.
The consignment model allows brands and suppliers to benefit from the company’s global warehouse network in the US, Europe and Asia. It was designed as an efficient and cost-effective way for brands to test the China market for sales potential.
2020
Pandemic Measures
Facing challenges posed by the coronavirus pandemic in 2020, Tmall Global adopts a “bonded factory” model in 2020. This innovation involves pre-positioning the final processing stage of overseas finished products in China, shortening the supply cycle.
U.S. singer-songwriter Billie Eilish launches a flagship store on Tmall Global, following other partnerships between Taylor Swift, Rihanna, Victoria Beckham and the platform.
2022
Tmall Global integrates three separate parts of its business – its 3P business, Tmall Direct Import; its 1P business; and its direct-mail-based business, Tmall Overseas Fulfillment – into one unit to enhance supply-chain efficiency and elevate customer service.
New York’s Woodbury Common outlet mall livestreamed via Tmall Global to share 1,500 upmarket brands and over 100,000 outlet products on Black Friday, 2022.
Tmall Global announces it will incubate around 1,000 international brands over the next three years.
2023
China’s cross-border import market tops RMB550 billion (US$77 billion), showing Chinese consumers’ continued appetite for quality imported goods.
In the post-pandemic era Chinese consumers are more concerned with pursuing a healthy lifestyle. Tmall Global’s data analysis of cross-border commerce reveals triple-digit growth in sectors such as health, sports, outdoor activities and personal care.
2024
10 years old and going strong
Today, Tmall Global features over 46,000 global brands from more than 90 countries, spanning over 7,000 product categories.
Women account for 70% of its customer base and two-thirds belong to Generation Z.
The road ahead
Tmall Global is investing in content and technology as it continues to evolve from an e-shelf into a global lifestyle expo.
To accomplish this transformation, it is working on strengthening engagement via short videos and livestreaming.
It is also exploring uses of AI, such as in generating product pages and fueling pricing engines.