Tmall and the new digital China

New products and dedicated initiatives are in the works for Chinese Valentine's day and the 618 shopping festival, as well as the debut, scheduled for next month, of other French and American brands of luxury clothing, jewelry and even sports cars. These are the news on Tmall Luxury Pavilion’s agenda, anticipated to MFF by general manager Janet Wang. Because after two years of pandemic, restrictions and closed stores, not even the new lockdowns that are affecting the main cities of the country —from Shanghai to Shenzhen, with even capital Beijing at risk— have been enough to discourage the interest of Chinese consumers towards the purchase of luxury products. At least not as long as there is a digital alternative.

An alternative that has been in continuous development since 2020 and has progressively gone from simple e-commerce to live streaming, from social commerce to gaming, involving the so-called Kols and today transforming itself into an immersive virtual experience extended to multiple channels. A challenge, that of digitalization, that western brands must necessarily be able to rise to in order to remain relevant in the Chinese market. The Alibaba group’s platform dedicated to fashion & luxury brands has witnessed a continuous annual growth in sales, demonstrating the strength of the demand for luxury goods online.

Clear evidence that China's new digital age has long since begun. And Covid-19 will not be the one to stop it. «Last year, on the luxury pavilion, an average of 30,000 new products were launched every month. Since the platform was revamped in September 2021, we have already launched nearly 500 campaigns from international luxury brands,» Janet Wang explained.

How is the platform performing in these early months of 2022?

From January to March, we have seen strong and consistent growth compared to last year during every shopping event, including New year's eve, Chinese new year, Valentine's day and International women's day. This month, just in conjunction with the Watches and Wonders haute watchmaking fair in Geneva, 12 maisons including Cartier, IWC Schaffhausen and Vacheron Constantin launched 28 new products on the platform.

Is watchmaking a segment that is performing well?

Sales have increased significantly compared to last year, with Chinese consumers able to purchase watches from the comfort of their homes despite restrictions. In 2020, the percentage of sales growth in this category exceeded 200%. In general, Chinese people are showing a great passion and desire towards a luxurious lifestyle, so much so that in 2021 the jewelry category also exceeded the previous year's revenue by 200%.

Are the lockdowns that began in March impacting sales on the platform in any way?

Since April, logistics have been disrupted due to the lockdowns and this has inevitably impacted online and offline sales of luxury brands.

Have you seen any extraordinary online shopping increases attributable to physical store closures?

Digitalization is the challenge that brands must rise to, although this does not mean that online and offline shopping are in competition with each other. Through Tmall's digital functionality, we help companies manage omnichannel operations and provide consumers with seamless service. For example, brands like Ralph Lauren, Zegna or Canali can process orders online and ship from stores. We are confident that it is possible to overcome the new challenges together with the brands and also reduce the impact caused by repeated lockdowns.

Have you been planning any other particular projects for the coming months?

We are currently working with luxury brands on marketing campaigns for 520 day, China's Valentine's day, an important occasion to connect with key consumers. We are encouraging companies to do pre-sales in order to avoid pressure on logistics. Van Cleef & Arpels, Saint Laurent, Montblanc, Qeelin and Cartier have already started them. Then, following 520, there will be the big 618 shopping festival, which we have already been working on to develop dedicated products and services.

Are there any other recent news?

In March, we officially launched our one-to-one video customer service, and Cartier and Burberry were the first ones to take advantage of it. This service is open to all consumers and is available for several product categories, including watches, accessories and apparel. In addition, it allows brands to move their Vip room from the offline world to their online store. Customers have the opportunity to speak with a professional shopping consultant through live streaming, get product-related information and benefit from try-on.

During these two pandemic years, how has the relationship between western brands and Tmall evolved?

Over the course of 2020, there was an average of one flagship launch on Tmall luxury pavilion every week. Brands such as Cartier, Gucci, Prada, Balenciaga or Armani opened their stores right around that time. In 2021 we witnessed a further acceleration with more than 200 fashion houses, including Saint Laurent, Farfetch, Van Cleef & Arpels, Graff and Boucheron, making their debut.

Are any new brands entering the platform soon?

In addition to the grand opening of Bulgari's online flagship store, Thom Browne and Brunello Cucinelli recently opened their stores as well. Other French and American luxury fashion, jewelry and sports car brands will debut on the luxury pavilion in May.

Are most of your buyers Chinese or do they also come from other countries in Asia?

Most of them are Chinese consumers. They come from almost every city in the country, both from the big metropolises such as Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou and from the smaller ones, where there are no luxury stores. There is also a percentage of buyers from other Asian areas, but this is much smaller.

What are today the most important characteristics to conquer Chinese consumers?

In recent months consumers have been paying more attention to sustainability, health, nature and solidarity, as well as to products incorporating Chinese cultural elements. International brands should consider these strong trends in their brand positioning and launch strategies. In addition, they should focus on the high-tech experience. 3D interaction, Ar/Vr experience and more to ensure premium and detailed presentations of luxury products. (all rights reserved)