Partnerships with third-party platforms in China are having a positive impact on business, international brands have been saying as they reported financial results in the recent quarters.
The latest to show confidence in such partnerships was Starbucks, which during the company’s Investor Day earlier this month announced a new virtual store that lets customers order their favorite Starbucks coffee and pastries across multiple Alibaba Group mobile apps. The move was one way to position the global coffee chain to take advantage of what’s expected to be a 45% increase in China’s total coffee market by 2022, Starbucks said.
The China market as a whole continues to entice brands looking for growth, especially given that China is already the biggest retail market in the world and will soon be the biggest market for a number of key sectors, such as beauty and fashion. Still, the most notable long-term opportunity for many international brands is the growth of e-commerce in the country, as China’s online retail market will be more than double the size of the U.S. market in just another three years.
Perhaps it’s no surprise, then, that many companies have singled out Tmall during their latest earnings reports, saying their partnerships with the country’s largest B2C marketplace were helping them not only sell products, but build their brands as well.
Here are a few of those brands and the comments they made during their calls with investors:
|Company||Comments on Alibaba Partnership|
|Abercrombie & Fitch||“We saw a solid start to the holiday season in November, with strong double-digit growth on Singles Day on Tmall.” (Nov. 29, 2018)|
|Adidas||“We’re very clear what we are driving through our own platform…, the only exception is Tmall in China…because we’re controlling what we’re doing there…[in] full.” (Aug. 6, 2017)|
|Coty||“…the quality of the work that I’m seeing with digital innovation, with the partnership with Alibaba, with the work that we’re doing with Tmall…We already have six brand stores on Tmall and we plan to have more in the next 12 months…” (May 10, 2018)|
|Estee Lauder||“So, there are hundreds of cities where there is awareness, there is demand, there is desire, and there is no physical distribution. And these hundreds of cities, the people can buy it online or during their travel, their travel within China or their travel outside of China. And that shows that is a big implication of the great results we are seeing on Tmall, on our brand dot-coms, in the online in general, in the travel within China of Chinese consumer.” (May 2, 2018)|
|Guess||“Our marketplace partnership with Tmall is growing at a rapid pace.” (Nov. 21, 2017)|
|H&M||“Sales of H&M on Tmall have got off to a very good start, with tens of millions of visitors in the first couple of months contributing to increasing sales in China.” (June 28, 2018)|
|L’Oréal||“The division’s e-commerce is accelerating, with the successful launch of its Yves Saint Laurent and Giorgio Armani brands on Tmall.” (July 26, 2018)|
|Lululemon||“You look at our performance on Tmall being 175% up year-over-year. That’s an incredible avenue for us to put eyeballs on the brand.” (Sept. 1, 2017)|
|Marriott||“We are impressed by the power of the Alibaba platform. Through a targeted marketing program late last year with Alibaba, we signed up 600,000 new Marriott loyalty members in just eight weeks.” (Aug. 7, 2017)|
|Nike||“In China, Singles Day once again broke records. Nike earned the #1 Sport Brand on Tmall, with our overall business for the day, up over 40% from last year’s Singles Day. ” (December 20, 2018)|
|Ralph Lauren||“This growth [in China, via Tmall] was supported by targeted marketing through social media and influencer engagements.” (July 29, 2018)|
|Starbucks||The Alibaba partnership “would be rocket fuel for our holistic digital flywheel strategy in China.” (Nov. 1, 2018)|
|Tiffany & Co.||“To expand with Tiffany’s digital presence in China, I’m pleased to say that we will partner with [Tmall’s] Luxury Pavilion.” (Aug. 28, 2018)|
|Urban Outfitters||“One recent example of this success is the brand’s results from Singles Day on Tmall Global. Singles Day is the biggest one-day sales event in the world, and this year, the Urban brand achieved the #1 apparel brand on Tmall Global.” (Nov. 19, 2018)|
Source: Company Reports