When it comes to e-commerce, nobody does it quite like Tmall Global. Back in October, the online marketplace teamed up with global real estate giant Simon and Shop Premium Outlets to bring US brands to Chinese consumers through a series of livestream shopping events.

These livestream events will provide shoppers in China with a unique opportunity to virtually shop SPO’s online inventory, as well as purchase directly from participating stores located within Woodbury Common Premium Outlets, a Simon property in New York, in time for Alibaba’s 11.11 Global Shopping Festival and throughout the holiday season.

For the uninitiated, Shop Premium Outlets platform is a joint venture between Simon and Rue Gilt Groupe. For the partnership, SPO is providing the backend technology for Tmall Global to access its inventory and product information in real time. 

To celebrate the upcoming 11.11 Global Shopping Festival, a pop-up studio will be set up in Woodbury Common Premium Outlets, a popular destination for Chinese visitors to the US, to host a series of livestream events. 

Shoppers in China will access the livestreams through Taobao Live, Alibaba Group’s livestream commerce channel. During each event, they will be able to virtually browse and purchase SPO’s inventory from participating brands and have the items shipped directly to their door. 

The impact of zero-Covid on retail

“We are very excited to work with SPO and also Simon Property Group, kudos to them for thinking about how they can digitise the inventory of these outlets and these offline stores to make it easy for shoppers to shop online here in the US and globally too,” Tony Shan, head of Tmall Global for the Americas, told Inside Retail.

Shan revealed that since the livestreaming event started on 28 October, Woodbury Common Premium Outlets has seen brisk sales as a result. The company is also doing virtual walkthroughs of stores for its consumers.

“For us, it’s all about broadening our overall customer base. We already have over 1 billion customers in our entire Alibaba ecosystem, and we want to fulfil their different needs and purchasing habits,” he added.

For Chinese consumers, the Government’s Zero-Covid policy has made international travel quite difficult, so these livestreaming shopping events are a win-win proposition for all concerned.

“Due to the pandemic, our customers aren’t able to travel abroad and go to places like the shopping outlets here in the US. In pre-pandemic days, these shopping outlets used to be big tourist destinations, as most customers will head to New York, LA or Vegas,” he noted.

Shan recalled the days when Chinese tourists would come by the busloads with empty suitcases so that they could shop to their heart’s content. Most of them were able to buy premium products and gifts at great prices for their family and friends.

“This phenomenon has been missing for the past couple of years, so this partnership is very exciting for us as we are now offering this ultra-shopping experience for our customers. They can now get the goods directly from the US and it can reach consumers in China,” he said.

Three-pronged approach to innovation

When it comes to innovation, Shan said that Tmall Global has a three-pronged approach, namely focusing on general digital commerce infrastructure, customer perspectives and merchant brand experiences.

The company is always trying to improve its platform in terms of the product and technology that it’s involved in. Digitising every aspect of the merchant operations is also key. Offering a full suite of solutions to brands within their ecosystem is also of paramount importance.

“For example, during these 11.11 sales, we are making our marketing and analysis tools available to all our merchants. We want to help guide them to make real time business decisions,” he added.

Apart from this, the company is also focusing on upgrading its logistics network offerings, warehousing and getting more variety in freighting options for merchants to ensure products get where they need to go in the most efficient way possible.

“We have our own payment systems as well, which allow small and medium businesses to concentrate on their core business, build their brands, and we are focused on offering them a good foundation to set up their operations on our platform,” he stressed.

The rise of livestreaming

In terms of the livestreaming element, the company is also investing heavily in augmented reality (AR) and virtual reality (VR) technologies to make the whole experience more immersive and interactive for shoppers.

“Gamification is also a big factor we are focusing on, and we also have 3D try-ons, showrooms, to elevate the shopping experience. These capabilities and technologies are all about making it easier for brands to engage with consumers and help conversions as well,” he said.

Shan has observed that livestreaming has been a very popular format for customers to really understand a brand and get more product information to help the overall purchasing decision making process.

More importantly, the company is focusing on lowering the overall operating costs for its merchants. So, it is simplifying its platform rules and providing a variety of support measures to help merchants during these uncertain times.

Staying ahead of the pack

It’s obviously been a rough couple of years for businesses in Asia and the world due to the pandemic, and of course with current fears over a global recession, inflationary pressures and supply chain bottlenecks, a company like Tmall is not immune from any of this.

“We recognise the need to help our merchants. It’s key for us to help them find certainty in this era of uncertainty. So we are trying to help them with inventory and supply chain management, as well as figuring out better logistics and warehousing too,” Shan added.

The company is setting up more warehouses in the US so that it can ship products directly to end consumers in China. It is also exploring new partnerships and solutions to connect brands in the US to consumers in China as the pent up demand for products is still there.

Right now, the company is in the midst of its 14th 11.11 shopping festival, and Shan feels that the staying power for this peak sales period is stronger than ever.

Peak sales periods

“Thinking back to our first 11.11 sales festival back in 2009, we only had 27 brands back then, and this year, we have 290,000 brands, with retailers all over the world, so you can imagine the scale of this event and the level of participation that has evolved over the years,” Shan said.

The company estimates that there will be at least 17 million products on offer within its ecosystem. It’s the biggest shopping festival in the world, and it’s being replicated elsewhere around the globe as well.

“Just to give you a sense, during one hour on a Monday evening, we had 100 million RMB of sales, which is like US$13.7 million of sales in terms of gross merchandise value (GMV) on our platform,” he noted.

The company does not just look at this sales phenomenon from the numbers only, the organisation is always analysing how to adapt to the pace and shopping patterns of Chinese consumers.

Shan has observed growing demand for luxury brands, including high-end labels in the US market as well.

Reaching the next generation

As always, Gen Z and millennials are a key demographic for Tmall Global. According to Shan, two-thirds of the platform’s customers were born after 1990, and most of them crave authenticity and brands with a unique selling proposition.

“These customers like unique products, they want to express themselves and try different things. Interestingly, 70 per cent of our customers are women, so as they are the primary decision-makers in households, we are always trying to serve them better,” he said.

To engage with the Gen Z and millennial target market, the company is always looking for ways to create content with them, either through livestreams, video content, or informational videos to better understand and engage with their core beliefs.

Looking back at the evolution of the Tmall Global brand since its launch in 2014, Shan remembers when the company first became a household name with Chinese consumers looking for high-quality baby formulas, and how things have changed since.

“Over the past eight years, we have launched more than 40,000 brands in global markets, from beauty to fashion, health, wellness, food and beverage, home goods and pet products. We’re in it for the long-term and the growth of these brands in the Chinese market too,” he elaborated.

The overall strategy for Tmall Global is to be the premier destination for consumers who are looking to buy global brands and products. Shan feels that this will continue to be the company’s number one priority.

“We are always looking to innovate, and really lead the pack when it comes to e-commerce and being that premier destination for global brands. We want to be that bridge to bring global brands to our customers in China,” he concluded.