The successful integration of your business in leading Chinese online marketplaces such as Tmall and JD.com
Online marketplaces are becoming increasingly crucial in global e-commerce. One reason for this is that central shopping facilities such as Amazon, eBay and Tmall provide a high degree of shopping comfort, offering a range of simplified search, purchase and shipping options. In China, where web retailing has been booming for years, more than 80 percent of total B2C e-commerce activities takes place on virtual marketplaces.
But the entry into the Chinese market also presents some challenges for brand shops and retailers. Constantly changing conditions such as import regulations, cultural differences and communication barriers are some hurdles, which retailers have to face.
Hermes provides European brand manufacturers and retailers with a turnkey solution for entering Chinese marketplaces that have specialised in selling goods produced outside of China. With its in-depth understanding of the market and direct partnerships, Hermes facilitates access to a new and expansive group of consumers – keeping both costs and risks manageable. And as retailing across domestic borders places special requirements on fulfilment operations, if requested we can manage your whole global fulfilment on your behalf. Your brand shop, too, stands to benefit from this dynamic growth.
Together with you, we can develop an integration and business plan in which we define all the key points: composing your range of products, calculating sales prices, store design and your marketing plan. Furthermore, all the important operational processes in the shop are defined in this phase and the IT deployed.
Chinese marketplace shops are clearly different to European shops in design and user navigation. Our local Chinese team looks after the front-end and banner design, the drafting of content and the campaign management. At the back-end, we manage the ERP operations and the interfaces.
Hermes offers a variety of marketing options internal and external to the marketplace, such as social media, mobile and search engine advertising in relevant Chinese channels. An onsite marketing calendar ensures that all relevant shopping events, including Singles Day for instance, are covered on the respective marketplace.
Hermes facilitates the integration of Chinese payment methods such as 'AliPay', the Alibaba Group's online payment system. Our system of daily monitoring makes sure that difficulties are remedied, should any arise.
Depending on your business requirements we offer two cross-border logistics options. The first model builds on your present warehousing infrastructure and is consequently less cost intensive. In the second model, Hermes manages all fulfilment operations, including warehousing and stock management which allows for improved delivery times and for a more flexible approach to fluctuations in volumes.
Local customer services provides an enhanced shopping experience for the customer. To secure customer satisfaction we provide both first and second-level support. This covers a wide range of contact options, from phone and e-mail through to text messaging and live chats.
By far the largest retail platform in China is Tmall. At present around 61 percent of the country's B2C e-commerce passes through the Alibaba Group's online marketplace on which manufacturers offer their brands on their own virtual sales stalls. Tmall Global was established in 2014 especially for international retailers and brand manufacturers. Here, foreign companies can sell their goods without the hassle of having to acquire a Chinese retailing license. Around 5,400 international brands from 25 countries are already represented on Tmall Global. With its marketplace solution, Hermes is an official Tmall partner.
The direct sales platform, JD.com, is comparable with Amazon. Offers cover a wide range of products – from books to sports items. The online sales of electrical and electronic products account for nearly 80 percent of business. The global marketplace JD Worldwide opened doors in 2015. Here too, international providers do not require a Chinese retailing license. Overall there are around 1,500 international brands offering 150,000 products. Hermes provides direct contact through the joint venture between the Hermes subsidiary Zitra and JD.com.