Tmall is an increasingly important aspect of the Chinese economy. Even western businesses who plan on moving into Chinese territory are now having to take the mall into account when planning their business strategies. They have now come to realize the importance of working alongside the upcoming technological giant in order to compete. From technology to fashion, businesses from many sectors are now utilizing the e-commerce marketplace. In this way, the looming strenght of this company is not something that can be ignored. Tmall now has thousands of brands from even more businesses, showing the importance of the company’s growing presence in the global economy.
The strength of Tmall is its ability to create a space that many different, often fiercely competitive, companies can utilize in order to sell their products. Rather than selling from local domains, these companies are able to easily list products in order to sell them quickly and efficiently for the best price. This model, much like the one that has been built by eBay, allows users to shop online for a seemingly limitless variety of products at low costs. For this reason, even larger corporations have begun to use the e-commerce marketplace to sell their products.
Unlike eBay, though, Tmall allows companies to create custom pages that are more relevant to their industry and product. In this way, businesses are able to keep their individual branding while still gaining the benefits of their platform.
This comes at a cost, though, as there is a higher charge for using the service than there is with traditional internet shopping sites. There are charges on sales as well as opportunities for the purchase of custom features, which can lead to it being somewhat more expensive. However, this allows for a more polished and professional look for the site. With this, they are able to create a more formalized format that is more attractive to businesses that are concerned about their image.
All of this has allowed Tmall to rise as a leading competitor within China’s economy. This has been due to their ability to dominate China’s e-sales. Studies show that Tmall has grown as one of the top websites that is visited in China, and it has been found it now supports half of China’s online transactions. This increase shows how quickly Tmall has grown to be one of the strongest businesses in the market.
This makes it easy to see why international businesses have come to utilize the web based marketplace that Tmall has built. However, the creation of a high quality and easily accessible source for commerce has other advantages as well.
Recognition of a brand or product is important for a company. By allowing for businesses to create their own spaces, the businesses are able to maximize product recognition, as they are able to market their product in their own way. Tmall, therefore, provides an inexpensive and viable source for western businesses to gain a foothold in China’s foreign marketplace. Instead of having to invest in physical locations and marketing for a population that is unaware of their product, they are able to attempt to create recognition beforehand.
The amount of Chinese consumers who are exposed to Tmall makes this an appealing option for businesses. In fact, the success of the online marketplace has made it difficult for businesses to come up with reasons not to utilize the plethora of advantages being offered. The attraction of so many consumers to a single place is seen as an untapped resource to many businesses.
The ability for Tmall to offer genuine buyer protection has been one of their biggest advantages. While the threat of purchasing inferior products has always been high in China, Tmall has been able to give consumers a measure of assurance that they will, at the very least, be reimbursed for bad deals. This has been achieved through the implementation of strictly enforced penalties to those who are making unscrupulous sales. Unlike sites offering similar services, tmall is able to give businesses as well as consumers piece of mind.
This piece of mind goes beyond fraud protection, though. The amount of people accessing the site, as well as the implementation of computer based search functions, gives businesses a much better chance of reaching a much higher amount of people. Instead of having to take the risk of creating a physical location that might not be seen by a large amount of people, businesses are able to take advantage of the accessibility of Tmall in order to cheaply and easily reach more people.