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Featured in The Wall Street Journal on September 20, 2022
Brands, retailers and small businesses are increasingly leveraging digital technologies to expand their reach outside their domestic markets. Why is this important? American businesses that have capitalized on this opportunity by selling to Chinese consumers through Alibaba’s platforms are having a significant positive impact on the U.S. economy.
Think of Alibaba as a massive digital shopping mall, where businesses are able to set up their own digital storefronts to reach Chinese consumers directly. Every day, Alibaba connects thousands of U.S. businesses, large and small, with one billion Chinese consumers who are shopping on our e-commerce platforms. Alibaba’s U.S. merchants include small businesses such as Radha Beauty and boscia skincare, agriculture-based companies including Sun-Maid and Califia Farms, fashion brands such as Diane von Furstenberg and Proenza Schouler, as well as large multinationals including Procter & Gamble and Estée Lauder.
As one of the world’s largest consumer markets, China has the highest retail e-commerce share in the world. In 2021, American businesses alone sold more than $61 billion worth of products directly to Chinese consumers through Alibaba. Even during the pandemic, Alibaba’s platforms in China served as an important channel for U.S. companies looking to diversify and grow their sales. Chris Longo, CEO of Radha Beauty in Aurora, Ohio, discovered that his partnership with Alibaba helped fuel his company’s growth during this difficult period. Radha was able to expand its workforce in the U.S. in response to the surging demand for its products in China.
Selling with Alibaba not only benefits the bottom line of U.S. businesses, but also has a positive impact on the U.S. economy as a whole. According to a recent study by a leading U.S. economic research firm, NDP Analytics, sales by U.S. businesses on Alibaba’s online platforms in China contributed $39 billion to the U.S. GDP. These sales also generated $21 billion in wages for American workers and supported the creation of more than 256,000 jobs in the U.S. When American businesses increase sales, not only do employees prosper, but their families, communities and companies benefit as well.
Even with these benefits, we recognize that entering a new market can be daunting, especially for small and medium-sized businesses. Alibaba’s Tmall Global platform is designed to help businesses without a local or physical presence in China to sell directly to Chinese customers. Innovative tools and digital services within the Tmall Global platform, such as logistics solutions, livestreaming, gamification and tailored distribution models, allow these businesses to reach Chinese consumers most effectively.
California-based beauty company boscia has demonstrated success in utilizing the Tmall Global platform through its experimentation with livestreaming. E-commerce livestreaming was pioneered by Alibaba in 2016 and has become a wildly popular form of interactive shopping in China. Boscia skincare’s first livestream in China lasted approximately two minutes and generated thousands of sales. The combination of retail and entertainment is now a key marketing strategy for the company as it builds out a long-term road map for success in China.
Merchants selling on Alibaba have full ownership over their customer relationships and consumer insights. Companies have complete control over pricing, marketing and merchandising decisions on our platforms. It is important to note that as a marketplace, Alibaba doesn’t compete with the brands choosing to partner with us. We succeed when the brands partnering with us succeed, which is why Alibaba is a trusted ally to the thousands of U.S. businesses working with us to sell their products in China and other international markets.
Today, we continue to see strong consumer interest and engagement on our platforms in China, which provide important support for U.S. businesses as they look for growth and operational efficiency. Alibaba is proud to help companies across America take advantage of the market opportunities in China. When that creates jobs at home and increases wages for U.S. workers, everybody wins.
Learn more about Alibaba’s positive impact on the U.S. economy.
Michael Evans leads and executes Alibaba Group's international strategy for globalizing the company and expanding its businesses outside of China.
Jessica Alba’s clean lifestyle brand,The Honest Company has launched in China as part of its international expansion. The digitally native brand has opened a flagship store on Tmall Global, Alibaba Group’s cross-border e-commerce platform to muscle in on the relatively small but growing demand for clean beauty products.
Based in Los Angeles, Honest will sell skincare and cosmetics products from the brand’s beauty line, Honest Beauty, to Chinese consumers. The Honest Company has been expanding overseas since 2019. Distribution in China is the next step in this journey.
“Launching in China is a key component of our international strategy,” said Nick Vlahos, Honest’s Chief Executive Officer. He adds, “As one of the fastest growing beauty markets in the world, there is an incredibly high demand for clean and highly effective skincare products.”
NDP Analytics, a leading economic and communication research firm, reports that Alibaba’s e-commerce platforms create a positive economic impact in the U.S. In 2020, U.S. businesses sold over $54 billion worth of products to Chinese consumers on Alibaba’s e-commerce platforms, supporting over 256,000 American jobs and $21 billion in U.S. wages. Businesses that work with Alibaba include signature American brands such as Bissell, Fender, and Stride Rite, and smaller brands like Emily's Chocolates, Radha Beauty, and SuperGoop!.
Notable findings in the report, Digital Commerce: Alibaba’s Contributions to the U.S. Economy, demonstrate that Alibaba’s sales channels are not only a growth engine for U.S. businesses but a net positive for the U.S. economy.
Commenting on the report in his recent Forbes article, “The E-Commerce Revolution is Transforming Global Trade and Benefitting the U.S. Economy,” Dan Ikenson, Director of Policy Research, NDP Analytics, said, “the confluence of technology, innovation, and entrepreneurship is opening up new opportunities for U.S. businesses to reach billions of the world’s consumers at a much lower cost and with a greater likelihood of long-term success. Alibaba’s pioneering efforts are part of this rich heritage.”
Alibaba recently completed its annual 6.18 Mid-Year Shopping Festival, which drew over 260,000 brands, including many from the United States, such as start-up supplement brand Ritual and skincare company PMD Beauty. These brands used the month-long online shopping event to sell to more than one billion Chinese consumers on Alibaba’s e-commerce platforms.
PMD Beauty President Mike Alexander personally hosted a livestream from the company’s headquarters in Draper, Utah, to showcase their innovative skincare tools to over 50,000 Chinese consumers. Watch the highlights from the livestream below.
Ritual, based in California, used the festival to tap into China's health supplement market, which is on track to reach over $44 million in 2022. Joy Chua-Schwartz, Ritual’s vice president and business development director, found the shopping festival to be a great opportunity to raise its brand awareness and educate Chinese consumers on a low-carbon lifestyle. “All of our work around sustainability resonates a lot with that younger generation (of Chinese consumers),” said Chua-Schwartz.
Counterfeiting and intellectual property (IP) theft cost U.S. businesses up to $600 billion annually, according to the Commission on the Theft of American Intellectual Property. As a global e-commerce platform, protecting IP is a top priority for Alibaba. Michael Evans, President of Alibaba Group, gave a keynote speech at last month’s annual International AntiCounterfeiting Coalition (IACC) conference, where he discussed Alibaba’s three-pronged approach to protecting IP.
As a result of Alibaba’s proactive approach to preventing IP theft, IACC President Bob Barchiese lauded its efforts, “Alibaba has so substantially enhanced their IPR protection program to the point that we and many of the stakeholders are comfortable in referring to the intellectual property rights (IPR) protection program as the gold standard within the e-commerce industry.”
Three principles define Alibaba’s anti-counterfeiting strategy:
Evans assured the audience that Alibaba remains committed to continuously adapting its approach and working closely with brand partners and other stakeholders, including government agencies, law enforcement, and trade associations, to protect IPR. Last year, Alibaba processed 98% of IPR infringement takedown requests within 24 hours.
“We are dealing with a much more complex environment. The challenges to IP protection have only gotten more difficult. However, protecting IP is our number one priority.”
- Michael Evans, President, Alibaba Group
Today, counterfeits and IP theft continue to rise across the world. Further, sellers face a rapidly changing and increasingly complex regulatory and geopolitical environment that complicates enforcement efforts. This landscape leads to a broader and more complicated set of challenges that requires more robust IP protection capabilities. Alibaba is committed to continuously adapting its approach and working closely with brand partners and other stakeholders, including government agencies, law enforcement, and trade associations, to protect IPR.
Learn more about Alibaba’s IPR protection program.
May 2 – 5 was National Small Business Week, organized by the U.S. Small Business Administration. Alibaba is proud to help U.S. small businesses, like Boscia (CA), Schmidt's (OR), and Basq (NY), grow their business globally by reaching the Chinese market. These businesses, and many more across the country, use Alibaba’s e-commerce platforms, Tmall and Tmall Global, to reach over 900 million Chinese consumers. Last year, U.S. businesses sold over $61 billion worth of goods across Alibaba’s platforms.
“By entering the market now, we can adapt our products to truly meet Chinese consumers’ needs and leverage our category expertise to introduce a new group of consumers to the benefits of Schmidt’s products and our natural ingredients.”
- Laura Zander, Global Brand Manager, Schmidt’s
View case studies on how U.S. businesses are succeeding in China by selling on Alibaba’s e-commerce platforms.
Bob’s Red Mill is a pioneer in the natural food business. Today, they are using Alibaba to bring its whole-grain goodness to the China market. Here, Bob’s Red Mill executives share more about their natural, stone-ground products and why Chinese consumers can’t get enough.
“It’s natural for Bob’s Red Mill to have most of our sales in China be on the Tmall and Alibaba platforms because they are the biggest player with the biggest reach.”
- Steven White, Export Division Manager, Bob’s Red Mill
Learn why Bob’s Red Mill uses Alibaba to grow their business.
Sustainability is a key pillar of social responsibility programs for businesses worldwide. In China, 72% of consumers prefer to buy from environmentally responsible companies, according to a survey by consultancy PwC. As a result, American brands such as Klean Kanteen, Olaplex, and Rothy’s, are tapping into Chinese consumers' demand for sustainable products on Alibaba’s Tmall and Tmall Global platforms.
For example, sustainable drinkware brand Klean Kanteen’s sales grow 10% month-over-month on average on Alibaba’s e-commerce platforms. Plastic-to-fashion brand Rothy’s leads livestreams with Chinese consumers on how to lead a sustainable lifestyle. Haircare company Olaplex packages its products in bottles that use recycled plastic from the ocean.
“Olaplex really wants to be more than just a product, but that we are also a lifestyle that the Chinese consumers can identify with.”
- JuE Wong, CEO, Olaplex
Learn more about how brands are selling sustainable products to consumers in China.
Through the Alibaba.com Grants Program, U.S. online entrepreneurs are receiving a total of $500,000 in grants to help bring their innovative product ideas to market. Alibaba.com is partnering with Hello Alice, a resource platform that helps U.S. women, men, people of color, veterans, the LGBTQ+ community, people with disabilities, and all entrepreneurs that aspire to make a change through every step of the entrepreneurial journey. More than 65% of the 12,000+ applicants are female, and of the 50 recipients, more than 35 are women.
These numbers reflect a rise in female entrepreneurship nationally. According to the Census Bureau's Annual Business Survey, approximately 20% of all businesses that employed people in the United States were women-owned in 2017. That number has been steadily increasing year over year, with more than 30% of small businesses today being women-owned. That's 11.6 million firms accounting for nearly US $2 trillion in revenue with 9 million employees.
Below are a few examples of women who are using the Alibaba Grants Program to grow their businesses in the U.S. and make a positive social impact.
Courtney Stewart (Atlanta, GA), founder of LipRevolt, is using her brand to promote social activism, change the world through beauty, and cater to women who are willing to fight for what they believe in — while speaking up for those who can't. LipRevolt specializes in using lipstick as a social fundraising platform to raise funds for charities and non-profits, and organizations that support social causes.
Cecile Blancarte's (San Luis Obispo, CA) fashion brand Blancarte is a modern Latinx brand that elevates the Latinx image through sleek designs and fashion accessories. Blancarte has a passion for elevating female entrepreneurs in the Latinx community and hopes her brand will help highlight Latinx empowerment and elegance.
Hannah Ulbrich (Denver, CO) of Copper Door Coffee Roasters overcame a difficult childhood to become the only 100% female-owned coffee roaster in Denver. Her company works to supply products for those in need. She says “We want to help women around the world come out of poverty and want women — who commonly do a lot of grocery shopping — to see themselves represented in the brands they buy."
Learn more about Alibaba.com’s work with women entrepreneurs.
In honor of International Women’s Day, Alibaba hosted a livestreamed event with U.S. fashion icon Diane von Furstenberg to discuss the evolution of the DVF brand, women’s empowerment, and livestreaming’s impact on her business. In addition, more than 18,000 viewers from China were treated to an exclusive look at DVF’s latest fashion trends. DVF CEO Gabby Hirata and DVF co-chairwoman and designer Talita von Furstenberg joined the event at the brand’s flagship store in New York City.
“Livestreaming allows me to speak, not just to one person, but 18,000,” said DVF founder Diane von Furstenberg.
A long-time partner to Alibaba, DVF sees the value in livestreaming to engage with customers online. Livestreaming not only enables brands to share their story, but allows hem to engage with their customers on a more personal level.
The company said China was a crucial market during the pandemic and will continue to be an important part of its growth strategy moving forward. “We are so thankful for our Chinese customers,” said DVF CEO Gabby Hirata. “When things were difficult during COVID-19, our Chinese stores and sales became our lifeline for more than a year or so.”
More than 100,000 brands hosted livestreams on Alibaba’s Taobao platform during last year’s 11.11 Global Shopping Festival, including women-owned U.S. brands Supergoop! and Mansur Gavriel. Livestreaming is fast growing in popularity, and more brands understand it is an excellent channel to reach consumers in China. Learn more about DVF’s work with Alibaba.
As part of its Women’s History Month coverage, Women’s Wear Daily (WWD) highlighted two women executives from Alibaba to share how Alibaba helps U.S. businesses succeed in China. Janet Wang, Alibaba’s Luxury Division Chief, runs Tmall’s Luxury Pavilion, which features more than 200 of the top global luxury brands in the world, including U.S. brands such as Marc Jacobs and Coach. In her interview, she noted that by 2025, China is set to become the world’s largest luxury market, and Chinese consumers are expected to account for nearly 50% of the global luxury market.
“My team and I are sharply focused on building the digital infrastructure to help brands reach their consumers effectively,” Wang told WWD. “We are also very focused on helping them understand today’s luxury shoppers so they can customize and adapt their strategies to the Chinese consumer. It’s a collaborative process.” Read more about Wang’s work with U.S. brands here.
Christina Fontana, director of strategic partnerships at Alibaba, spoke about the trajectory of her career and her advice to young women leaders.
“In this rapidly changing environment, two leadership skills are key for success today,” said Fontana. “First, have the patience to deal with daily chaos and constant change. Second, understand the power of effective feedback. Feedback is an important tool for both mentoring team members and for advocating for ourselves and changes in our organization with our leaders.”
Find out more about Christina’s advice for the next generation of women leaders.
Alibaba recently announced that in 2021, U.S. companies sold more than $61 billion worth of goods to Chinese consumers through its e-commerce platforms.
In 2021, Alibaba continued to help thousands of U.S. businesses, large and small, access over 900 million consumers in China by offering them a robust e-commerce infrastructure with innovative tools and digital solutions. Below are just a few examples of how Alibaba supported U.S. brands in their global growth last year.
Learn more about the U.S. businesses thriving on Alibaba’s e-commerce platforms.
On February 1, Alibaba partnered with Protocol for an event titled “How tech is making sure shopping will never be the same.” Protocol President Bennett Richardson interviewed Alibaba President Michael Evans about how Alibaba’s innovative technologies are a growth engine for U.S. businesses.
“American brands are very interested in making sales, but what they're really focused on is the direct consumer contact and developing that consumer base and erecting new innovative products that are specific for the China consumer market,” said Evans.
Evans and Richardson discussed the digital innovations on Alibaba’s platforms that allow U.S. businesses to make deeper connections with customers through immersive experiences, whether it’s through entertainment, gamification, or building an online community.
Alibaba connects U.S. businesses and their products directly to the Chinese consumer. Using Alibaba’s platforms, a business owns the relationships and consumer insights and has total control over pricing, marketing, and merchandising decisions. This means Alibaba is always a partner and not a competitor to the U.S. brands selling on its platforms.
“Our strategy is to take brands, retailers, small businesses, and even farmers and their great products and put them on our platform and make this direct-to-consumer connection," said Evans. Chinese consumers love American products.”
The discussion also noted Alibaba’s commitment to ESG and sustainability, including a carbon-neutral pledge by 2030. “We don't see anything inconsistent between having a great ESG strategy and also having a great and growing commerce strategy,” said Evans.
To close the webcast, Protocol’s David Pierce's discussed how tech is changing retail with Fast's Allison Barr Allen, fabric's Faisal Masud, and Pinterest's Jeremy King. The panelists discussed the convergence of online and offline experiences to engage customers and how augmented reality is poised to change the future of retail for areas including fashion and furniture.
Alibaba recently held its 2022 Alibaba New Seller Summit, which helps brands explore Alibaba’s platforms. Last year, more than 6,000 global brands entered China through Alibaba’s cross-border e-commerce platforms.
A key takeaway from the event was the growing importance of Gen Z on Alibaba’s platforms. For example, consumers born after 2000 grew 70% on Alibaba’s marketplace Tmall Global between March 2020 and March 2021. Meanwhile, 30% of the users on Tmall were born after 1995.
China’s Gen Z is contributing to what already makes up the largest middle class in the world. By 2027, it’s estimated that 1.2 billion Chinese will be in the middle class, making up one-quarter of the world total. China is also the world’s biggest e-commerce market, generating $1.7 trillion in sales a year.
“Consumers of imported goods are getting much younger, with the fastest growth from Gen Z consumers, [so] their huge consumption potential is important to brands,” said Alvin Liu, president of Alibaba B2C Retail.
Gen Z has come of age in an increasingly digital world and is embracing the innovations on Alibaba’s platforms. At the summit, Lynn Dong, general manager of global business development at Alibaba, said, “The emerging Gen Z cohort values individuality higher, and they spend more on enjoying themselves.” The rise of Gen Z consumers has reshaped the consumer market, and sales of perfume, whiskey, and fashion products have all grown as a result.
The rise of a younger generation of consumers in China, comfortable with online shopping and e-commerce, provides growth opportunities for U.S. businesses. Learn more here.
At NRF Retail’s Big Show in New York City, Alibaba Group’s director of strategic partnerships Christina Fontana took part in a conversation with Thom Browne CEO Rodrigo Bazan about the brand’s growth in the Chinese market and partnership with Alibaba. Thom Browne, a New York-based luxury fashion brand, is planning to open 100 stores by 2023, with China being a critical part of the company’s expansion.
Thom Browne is just one of the American retailers partnering with Alibaba to find new customers in the Chinese market. NRF President Matt Shay has noted the importance of Alibaba for U.S. retailers looking to grow sales. “E-commerce platforms, like those offered by Alibaba and others, help retailers access the global marketplace, particularly with payments, logistics and marketing, which remain critical for continued industry growth and to help retailers compete more efficiently in the global economy."
Thom Browne recently launched a store on Alibaba’s Tmall Luxury Pavilion as part of their efforts to reach the Chinese market. “We loved the fact that we had the ability to start from scratch in China,” Bazan said during the NRF panel. “To my surprise, this launch was completely done long-distance from our offices in Europe and the U.S.” With the help of Alibaba, Thom Browne built campaigns around the 11.11 Global Shopping Festival and Chinese New Year.
Fontana explained that Alibaba is helping put companies like Thom Browne in a position to succeed in China. “The important part is that we’re online, and we’re trying to communicate with the right consumers. We help enable brands to find the right target audiences — their consumers among all the consumers in China.”
Learn more in Footwear News’ coverage of the event.
During an interview with Protocol President Bennett Richardson on February 1, Alibaba Group President Michael Evans announced that U.S. companies made sales of more than $61 billion to Chinese consumers on the company’s e-commerce platforms in 2021. That number represents a 50% increase for U.S. businesses on Alibaba’s platforms over the past two years.
Alibaba held its 13th annual 11.11 Global Shopping Festival last month. The event, also known as “Singles’ Day,” is the world’s largest shopping event, enabling businesses from around the world to reach over 900 million Chinese consumers. More than 290,000 brands participated, including thousands of U.S. businesses, big and small.
At the beginning of the 11.11 Festival, founders and executives from several U.S. brands joined a panel in New York to discuss the opportunities provided by Alibaba’s platforms. Panelists included Amanda Baldwin, CEO of Supergoop!; Isabelle Fevrier, CEO of Mansur Gavriel; Lauren Parisier, president and co-founder of basq NYC; and Gabby Hirata, president and CEO of DVF; who shared their experiences entering the Chinese market and what it is like to engage with Chinese consumers on Alibaba’s platforms.
“Everyone talks about the small business, but I am the small business. To have the opportunity to have a partner like Alibaba’s Tmall to help you get out there, to help you tell your story and understand what you’re trying to do, it’s amazing,” noted Lauren Parisier of basq NYC, a maternity skincare brand.
Amanda Baldwin, CEO of Supergoop!, explained that her expectations had been exceeded since partnering with Alibaba and the platform’s tools provided the opportunity for her brand to learn and grow over time. “We became Alibaba’s number one skincare launch of the year in 2020, and we’re 1,000 times what we expected to do. The story of perseverance and plowing through with your plans is what we’ve been doing the last 18 months.”
Isabelle Fevrier added that Mansur Gavriel had recently completed its first livestream with Alibaba and noted that the event showed how innovative marketing can help it stand out in the Chinese market. “This is a great tool in terms of reaching a much broader audience and figuring out what resonated with them.”
After the panel, DVF President and CEO Gabby Hirata led a livestream event with Talita von Furstenberg, model, and Diane von Furstenberg’s granddaughter. The livestream connected DVF with over 6,000 Chinese consumers to showcase the brand’s iconic looks and flagship store in New York. Chinese consumers asked questions about colors, sizing and fit, and received a special VIP experience and product promotions for the 11.11 holiday.
The 11.11 Global Shopping Festival exemplifies how U.S. brands are pioneering new retail experiences and meeting Chinese consumer demand using Alibaba’s innovative tools. “If you want to know what the future of retail will be, look at China today,” Alibaba President Michael Evans noted in a special video message.
As it celebrates its 100th anniversary, Ohio-based Vitamix is growing its sales in China with Alibaba’s platforms. The growing interest in healthier lifestyles for China’s middle class has presented a unique opportunity for Vitamix. McKinsey reports that 67% of Chinese consumers put a higher priority on wellness than they did two or three years ago.
The family-owned company began refining its direct-to-consumer approach for the Chinese retail market in 2019 by working with Alibaba to tell its story in China. The results have been impressive, with Vitamix increasing its sales in China month-over-month.
Product demonstrations have been an important part of Vitamix’s marketing since its founding, and Alibaba’s livestreaming tools have helped bring the company’s products to life for Chinese consumers. In addition, Alibaba’s position as China’s largest e-commerce platform made it a natural fit for Vitamix’s efforts to localize the product by educating and inspiring new customers.
“Our growth in China is elevating the growth of our company overall,” said Vitamix President and CEO Jodi Berg. “And as a result, not only are we growing in China, but we’re growing right here in Ohio.”
At a recent event in Washington, DC, industry experts held a panel on the growing opportunities for U.S. businesses in China as they look to recover from the pandemic. Steve Clemons, The Hill’s editor-at-large, moderated the panel, and was joined by Frank Lavin, former U.S. Undersecretary of Commerce for International Trade and Karren Kerrigan, President & CEO of the Small Business & Entrepreneurship Council.
Lavin currently serves as the founder of CEO of Export Now and frequently works with U.S. businesses trying to grow their sales in China. “I would do whatever I could to encourage U.S. businesses to compete in that market,” said Lavin. “Because of the size of the China market and the ease of e-commerce, the opportunities are tremendous.”
In Lavin’s new book “The Smart Business Guide to China E-Commerce,” he notes that digitization and platforms like Alibaba have broken down many traditional barriers for U.S. businesses and reduced the costs of companies to enter China and grow their brands there.
Karen Kerrigan, President & CEO of the Small Business & Entrepreneurship Council, emphasized how technology opened up new markets for U.S. small businesses. “When we talk about the data and the numbers of consumers online in China, it's very compelling,” said Kerrigan. “This full transformation of all things digital has made a difference.” She added, “Small businesses will be looking outside the U.S. because that's where the customers are.”
According to a recent national survey conducted by Echelon Insights, 77% of voters in the U.S. believe that American businesses need access to global customers in order to succeed. This month’s issue will explore the ways in which Alibaba is helping U.S. businesses grow by connecting them to overseas consumers and other overseas businesses, and the tools they have to support them along the way.
With Alibaba’s 11.11 Global Shopping Festival, the largest shopping event in the world, taking place this month, U.S. businesses have an opportunity to not only grow their global sales but also build their brand awareness for long-term growth. Last year, U.S. businesses generated over $5.4B in total sales during the 11.11 period alone. This year, thousands of U.S. brands are participating in the 11.11 Shopping Festival and many are already seeing strong pre-sale performance.
To help U.S. small and emerging brands test the Chinese market, Alibaba is working with seven U.S. businesses to fast-track them onto the platform before 11.11. Read below to learn more about these seven winners and the company’s 2021 Go Global Pitch Fest.
Additionally, Alibaba.com, the company's B2B e-commerce marketplace, has launched a new grant program to support U.S. SMBs. The program will award up to $500,000 to help U.S. entrepreneurs bring their innovative product ideas to market. Fifty recipients will each receive $10,000 to support their business. Learn more.
For the second consecutive year, Alibaba is providing an opportunity for U.S.-based small and medium-sized businesses to bring their products to the China marketplace through the 2021 Go Global Pitch Fest.
This year, seven businesses were selected as Pitch Fest winners to receive hands-on coaching and to be fast-tracked to launch on Alibaba’s B2C cross-border marketplace Tmall Global during the 11.11 Global Shopping Festival. The 2021 Pitch Fest winners include several clean beauty and skincare brands that are launching in China at an opportune moment, as the skincare market in China is forecast to reach nearly $40 billion by 2027.
Learn more about some of our Pitch Fest winners below:
Alibaba.com, one of the world’s largest B2B e-commerce marketplaces, has launched a new grant program to support U.S. small and medium-sized businesses. The program will award up to $500,000 to help U.S. online entrepreneurs bring their innovative product ideas to market.
Alibaba.com is proud to partner with HelloAlice, a resource platform that aims to help small businesses through every step of the entrepreneurial journey, to host the grant program, which is open to any new or existing Alibaba.com account holder. In early December, the top 50 applicants will win $10,000 each to support their business. Learn more about the program.
Alibaba recently sponsored an article in Protocol on the innovative tools Alibaba is providing U.S. businesses to reach the Chinese market. The story explains how in China, brands and retailers don't just compete for shoppers' dollars; they immerse consumers in new, entertaining experiences that keep them coming back time and again. As a result, U.S.-based businesses are finding ways to put the shopper at the center of the digital experience via Alibaba platforms to cater to Chinese customers.
Read in Protocol, “The next frontier of shopping is digital and experiential.”
"Ecommerce platforms, like those offered by Alibaba and others, help retailers access the global marketplace, particularly with payments, logistics, and marketing, which remain critical for continued industry growth and to help retailers compete more efficiently in the global economy," said Matt Shay, president and CEO of the National Retail Federation.
Small businesses make up 99 percent of all U.S. businesses, but the pandemic has forced abouzt one-third of them to temporarily or permanently close. To stay afloat, many small businesses have had to find new ways to reach consumers across the globe. To discuss these issues, The Hill recently convened a virtual Small Business Summit, with a panel comprising policymakers, experts, members of Congress, and small business owners.
Senator Ben Cardin (D-MD) and Rep. Young Kim (R-CA) discussed the need for policymakers to consider the needs of small businesses given their role as the engine of the American economy. Meanwhile, Frank Lavin, CEO & Founder of Export Now, emphasized the importance of small businesses finding ways to reach consumers across the globe, including shifting from brick-and-mortar retail to increased online engagement.
“If you're making retail goods, such as apparel, food, baby gear, exercise equipment, you're very, very lucky,” said Lavin, “Because the appetite in China for those kinds of everyday consumer goods and premium goods from America is huge.”
During a panel on “Modern Small Business Ownership,” small business owners discussed topics including the importance of e-commerce and the pandemic’s effects on their business strategies. Emily’s Chocolates & Nuts President and CEO Amy Paulose talked about her business’ entry into the Chinese market and how companies like Alibaba can help.
“Platforms such as Alibaba help spearhead and walk you through that process,” said Paulose. “There's so much information and so much desire to try new things and American products, there's such an appreciation for the products that we are developing, and Chinese consumers are eager.”
At the Summit, veteran journalist Kathleen Koch also spoke with Alibaba Group’s President Michael Evans about the enormous opportunities for small and medium-sized businesses in the Chinese market.
“The middle class has been growing in China for the last 15 to 20 years, and the size of that middle-class today is larger than the entire U.S. population,” said Evans. “It’s a huge opportunity for American businesses because America produces some of the greatest products that are safe, reasonably priced, and constantly innovating. Chinese consumers love American products, whether they come from brands or small businesses that are just starting.”
Evans explained how Alibaba’s commerce infrastructure helps U.S. brands digitally upgrade their businesses so they can focus on product innovation and serving new consumers. By using Alibaba’s tools, U.S. companies sold more than $54 billion worth of goods to Chinese consumers through its platforms last year.
Watch the full interview here.
Tony Shan, Head of the Americas for Alibaba’s B2C cross-border marketplace Tmall Global, recently participated in a webinar with Business Oregon, the state’s economic development department, on how local businesses can reach the Chinese market through Alibaba’s platforms. Many of Oregon’s leading companies, including Nike, Columbia, Leatherman, and Bob’s Red Mill, use Alibaba’s platforms to sell to Chinese consumers. Shan covered recent trends in the China retail landscape and explained how Alibaba helps small and medium-sized U.S. businesses overcome logistical, technological, and cultural barriers to reach Chinese consumers more effectively.
“Alibaba has an event every November called Singles Day, where they do record sales and all types of promotions…we’re excited to bring that opportunity to Oregon,” said Amanda Welker, Global Strategies & Recruitment Manager for Business Oregon.
Watch the full webinar here.
Oregon’s Schmidt’s Is Set to Meet Growing Demand for Natural Skincare Products in China
Portland, Oregon-based Schmidt’s is the maker of the first deodorant in the United States to be certified natural. The vegan and cruelty-free brand is bringing its innovative products to Chinese consumers and jump-starting its launch into Asia by partnering with Alibaba’s Tmall Global through the Go Global 11.11 Pitch Fest. Pitch Fest was created by Alibaba to help support small businesses and provide them with marketing advice and exposure to boost brand awareness. Last year, U.S. brands generated $5.4 billion in sales during the 11.11 festival.
“We’re very excited because the natural product revolution is just getting underway in China,” says Laura Zander, Global Brand Manager for Schmidt’s. “By entering the market now, we can adapt our products to truly meet Chinese consumers’ needs.”
Schmidt’s is now working with the Alibaba team to better understand the demand for natural, clean skincare in China and craft a product assortment for the 11.11 festival that features ingredients and scents tailored for Chinese consumers. The brand is also creating content that highlights its brand pillars of transparency and naturally derived ingredients that work equally well for both women and men.
“11.11 is a huge opportunity for us to see how Chinese consumers perceive natural deodorants and to gather insights and learnings,” says Zander. “Our job ahead is to instill trust, confidence, and familiarity.”
Alibaba recently sponsored a piece in The Hill on how U.S. businesses are going digital and using e-commerce to access global markets and find new growth areas for their companies and communities. The story covered how small businesses are finding success on Alibaba’s platforms, including Ohio’s Radha Beauty and California’s 100% Pure.
On its partnership with Alibaba, Radha Beauty’s CEO Chris Longo noted, “It’s absolutely fueling the growth of this company. Tmall and Alibaba are out there working hard to help companies grow and help bring their products to consumers. It’s a great partnership. I think we’ve just scratched the surface.”
Read in The Hill, “How American Small Businesses are Making it Big in China.”
Freshippo, Alibaba’s high-tech grocery chain, is revolutionizing the grocery industry. Since 2016, Freshippo gained popularity with Chinese shoppers because of its innovative mobile-first shopping experience that offers online delivery, unmanned checkout kiosks, and mobile scanned products. Freshippo reflects the growing consumer shift towards digitization, with 60% of purchases taking place online.
U.S. businesses can reach Chinese consumers through Freshippo’s innovative supply chain system. Today, 40% of Freshippo’s offered products are imported from outside of China. Yakima, Washington-based Domex Superfresh Growers, partnered with Freshippo to bring its cherries to more than 50 stores in China. “The cherries make it all the way from our orchards in Washington State to the shelves of Freshippo within 48 hours,” said Jeff Webb, Domex Superfresh Growers’ director of international business development.
Domex Superfresh Growers decided to partner with Freshippo because of its business model, which integrates retail, warehousing, and fulfillment. As Webb noted, “When I visited China, I recognized that Freshippo is a perfect market for our cherries. What impressed me most was the way they educated their customers about their products.”
California-based Beyond Meat also brought its ‘Beyond Burger’ to more than 50 Freshippo stores in China. The brand sees China as a significant market opportunity, with Euromonitor predicting that China’s growing demand for “free from meat” products, including plant-based meat substitutes, would be worth nearly $12 billion by 2023.
A new generation of Chinese consumers is increasingly making their purchases online, and this includes a growing number of food products from U.S. businesses. Below are examples of American businesses that are utilizing Alibaba’s tools to tailor their products and marketing strategies to succeed globally.
Emily’s Chocolates & Nuts
Emily’s Chocolates & Nuts, based in Fife, Washington, is a family operated business producing high-quality chocolate and nut products. In October 2016, Emily’s Chocolates was launched on Alibaba’s Tmall Direct Import (TDI), a direct sales channel through Tmall Global, which helps brands test the market and shape their business strategy in China. Emily’s Chocolates leveraged Alibaba’s insights and expertise to launch new products catered to the Chinese consumer, such as its grab-and-go single pack of mixed nuts and dried fruit designed for busy urban dwellers in big cities.
“China can be a daunting market. The TDI platform is a great opportunity for you to have the guidance of someone who knows the market and to choose the products that you think that will best meet the needs of your customers,” said Emily’s Chocolates & Nuts President and CEO Amy Paulose.
Califia Farms
According to Alibaba’s Tmall Innovation Center, plant-based milk has seen an 800% growth year-over-year in China. This explosive growth has encouraged Los Angeles-based Califia Farms, a leading plant-based food & beverage company, to partner with Alibaba to reach the growing Chinese market. Califia Farms used Alibaba’s consumer insights to launch products specifically tailored to Chinese consumers, including an unsweetened version of its beverages, which became a top seller.
The company said that they were able to learn, adapt and acknowledge the uniqueness of the Chinese market. And keeping in mind local tastes and flavors is a big part of their business.
Mars Inc.
McLean, Virginia, based Mars Inc., known for its iconic Milky Way bars, M&M's, and Skittles, teamed up with Alibaba to expand its reach in the Chinese market. Mars used Alibaba’s research to understand how it could successfully expand their flavor offerings to Chinese consumer tastes. The results showed Chinese consumers were willing to combine their love of spicy foods and chocolate. To satisfy these cravings, Alibaba produced a chili-infused Snickers, which was well received, with 92% of consumers giving the snack a positive review.
In Yakima, Washington, summer means cherry season. Thanks to the power of cross-border e-commerce, summer also means Yakima cherries for many Chinese families. For many years now, Alibaba has been working with Domex Superfresh Growers to bring its cherries from trees in Yakima, Washington to tables in China in just 48 hours. This is just one example of how high-quality American goods, including fresh products, are sold on Alibaba platforms to consumers around the world.
This month, we celebrate American growers, SMEs, and companies that are bringing their produce and food products to Chinese consumers. In addition to Domex Superfresh Growers, these businesses include:
Alibaba’s mission in the U.S. is to help American businesses and brands, like those mentioned above, sell their products, grow their brands and consumer base, and succeed in the China market. You can read more below about the experiences of U.S. brands and SMEs on Alibaba’s platforms.
I have also outlined the work we do in the U.S. this month in Protocol. As American businesses of all sizes look to go global, we look forward to working with them to innovate, digitize and reach new markets.
Sincerely,
Michael Evans, President and Director, Alibaba Group
People are often surprised when I explain Alibaba’s strategy in the U.S. Most people don’t think we have business in the U.S. because we aren’t the kind of U.S. consumer-facing brand people use every day. That’s true. Our consumers – nearly 900 million of them – are located in China.
But we do have thousands of customers here in America. Our customers are U.S. brands, retailers, and small businesses. Let me explain.
Think of Alibaba as a massive digital mall for brands and retailers. When a U.S. business decides to work with us, we give them not only the traffic but also all the tools to help them build their brands and a direct connection to the Chinese consumer. This includes fully customizable online storefronts, marketing and merchandising tools, inventory and management services, as well as translation and logistics. One of our strengths is the deep insights we have into the Chinese consumer, which can be very valuable to brands as they tailor and market their products to fit the demands of new consumers. We share it all because our success is directly tied to the success of our customers.
What makes us different than other e-commerce platforms is that we are a marketplace, not a retailer. That means we connect the businesses and the products directly to the consumer. We do not compete with the brands or small businesses operating on our platform. That’s an important reason why so many U.S. brands trust us and want to work with us in the China consumer market.
Last year, thousands of U.S. companies, including large multinationals like P&G, Nike, and Estee Lauder but also family-owned businesses like BISSELL and Emily’s Nuts, and small businesses like Supergoop and Radha Beauty sold more than $54 billion of products to Chinese consumers on our platform.
According to the U.S-China Business Council, a million jobs in the U.S. are consistently sustained by helping U.S. businesses sell to China. We are proud to be a big part of that job creation opportunity.
In fact, over the past several months, Alibaba has seen an influx of American brands starting to sell to China. I’m pleased to report that over 100 U.S. brands have launched on Alibaba’s cross-border shopping platform Tmall Global since January 2021. Tmall Global allows companies to sell to China without any operations in China. Some examples include Washington-based luxury fragrance brand Antica Farmacista, New Jersey skincare brand Nuria, and California luxury handbag brand Senreve.
Another way we create opportunities for U.S. businesses in China is through online shopping festivals. We are known for our 11.11 Global Shopping Festival, but our mid-year 6.18 Shopping Festival is also significant. In this newsletter, we explain how brands like Rothy’s, DVF, and others used this month’s festival to drive sales and consumer engagement.
We are constantly innovating to improve the online shopping experience on our platforms with technologies like 3D shopping, gamification, and livestreaming. I recently had the opportunity to sit down with fashion icon Diane von Furstenberg at the recent National Retail Federation’s Converge Conference to discuss how brands are taking advantage of these technologies to grow their global sales. Our conversation is highlighted below.
Alibaba’s work in the U.S. is focused on doing everything we can to help U.S. brands, retailers, and SMEs succeed in the China market and to bring Chinese consumers great U.S. products. If you run or know a brand or small business you think would do well in China, please take a look at our 11.11 Tmall Global Pitch Fest. Selected brands will get hands-on coaching and accelerated onboarding so they can participate in this year’s 11.11 Festival.
Of course, our teams are always ready to talk to any brand or small business interested in learning more about the opportunity to sell to Chinese consumers. It’s a significant and important opportunity for U.S. businesses, and we are proud to be a part of their success.
Sincerely,
Michael Evans, President and Director, Alibaba Group
On June 25th at the National Retail Federation’s Converge Conference, Alibaba President Michael Evans and fashion icon Diane von Furstenberg discussed how 2020 brought about a digital transformation for many brands, including DVF. At the session, Furstenberg discussed how she saw this past year as a big opportunity to transform and how Alibaba helped her do it.
“I had never experienced in my life the world stopping, so all of a sudden, the world stopped, and we just had to assess it,” said Furstenberg. “We never had the luxury of stopping. So maybe now is the time to rethink about the business model and see how we can go into the future.”
The pandemic helped accelerate DVF’s work to expand in China through Alibaba’s platforms. Furstenberg explained how DVF used Alibaba’s 6.18 Festival as a platform to reach Chinese consumers. During the festival, she held a special broadcast from her flagship store in New York City. The livestream featured her spring and summer collection to reach more than 320,000 fans on DVF’s Tmall flagship store in China. “I think it's a celebration to watch what they do and to watch how you can integrate all the different facets is fascinating, but most of all, it is great for the consumer and at the end, that's what we need to do. We need to respect the consumer and give her what they want,” Furstenberg said about DVF’s collaboration with Alibaba.
Michael Evans emphasized that while 50% of total China retail sales happen online, Alibaba is also helping brands succeed by providing digital tools, analytics and consumer insights that can also be used for physical stores. He said that Alibaba is helping to digitize the full retail supply chain, including manufacturing, warehousing, pricing, marketing, and logistics, whether it’s online or in-person.
"What makes brands so interested in the China market is not only do we have the online capabilities, but the data and consumer insights help many brands decide where to open their next offline location,” said Evans. “We have created a holistic retail environment that's fully integrated.”
Rothy’s, a San Francisco-based apparel company, introduced its new men’s line on Tmall during the 6.18 Shopping Festival. The sustainable lifestyle brand is reaching new customers through Alibaba’s livestreaming capabilities. While brands typically feature KOLs (Key Opinion Leaders) or influencers in their livestreams, Rothy’s used real customers to talk about its products and authentically connect with Chinese consumers. This year, Alibaba saw sales generated through merchant-led livestreams grow 100% year over year during the 6.18 Shopping Festival.
“We can see huge traffic coming to the Tmall platform during the campaign period. It’s a great opportunity for Rothy’s to celebrate the festival with our customers, and we hope to attract more sustainable-fashion lovers, both men and women, during 6.18 to convert them into buyers and customers,” said Michelle Tang, general manager of Rothy’s China.
Tmall Global worked with four New York-based designers, Rebecca Minkoff, Botkier, Nadri, and Welden, to launch products on the platform for the 6.18 Shopping Festival. Alibaba is helping brands with a consignment business model that allows them to leverage their current inventory while learning more about the preferences of Chinese consumers to increase future sales.
“As international travel continues to be restricted, we are using 6.18 as a way to bring the essence of New York to Chinese consumers,” said Emma Lee, the head of fashion for cross-border online marketplace Tmall Global. “New York is a fashion capital of the world. For Chinese consumers, especially Gen Z, these New York brands represent a feeling of being fearless and unapologetic. For these brands, 6.18 is a great opportunity to understand what the China market can mean for them in the long term.” Learn more about Alibaba’s work with New York designers.
Following the success of its inaugural 2020 Go Global 11.11 Pitch Fest, Alibaba has begun accepting applications for Pitch Fest 2021. Pitch Fest provides an opportunity for U.S.-based small and medium-sized businesses to test the market in China and participate in Alibaba’s 2021 11.11 Global Shopping Festival, the biggest shopping event in the world.
Selected brands will receive hands-on coaching from Alibaba on how to navigate the Chinese consumer market. Brands that are ready will be fast-tracked and launched on Alibaba’s B2C cross-border marketplace Tmall Global through our Overseas Fulfillment program and have the chance to have their products featured during the 11.11 Global Shopping Festival.
Last year, selected brands, including America’s oldest apothecary C.O. Bigelow, used the Go Global 11.11 Pitch Fest to test the China market and boost brand awareness by participating in 11.11.
Applications for this year’s Pitch Fest are open to e-commerce-ready SMBs across all major retail categories, including apparel and accessories, beauty and personal care, health and wellness, consumer electronics, home goods, food & beverage, as well as baby, kids & maternity. The U.S. Pitch Fest applications period will run through August 6th.
This month is World Trade Month, a time to reflect on how important exports can be to so many U.S. businesses. Last year, American businesses made sales of more than $54 billion to Chinese consumers through Alibaba’s platforms. We firmly believe that brands large and small can succeed on a global scale and connect with new consumers using the power of advanced digital tools for e-commerce.
The pandemic accelerated the shift away from physical stores to digital shopping by roughly five years, according to new data from IBM’s U.S. Retail Index. The legacy of the pandemic for the retail sector will be digitization and we have been very focused on supporting brands, retailers and small businesses to enhance their digital strategies.
Stride Rite, the 102-year-old iconic children’s shoe brand, is a great example. We worked with the company to launch an online flagship store for Chinese consumers last November. They are not only selling shoes, but gaining important insights allowing them to adjust their product selection to better meet their consumers’ needs. In June, I’ll be discussing the importance of a digital and global strategy and other exciting trends with fashion icon Diane von Furstenberg at the National Retail Federation’s Converge Conference. DVF has achieved enormous success on Alibaba’s platforms.
With the continuous evolution of digital selling opportunities, these are exciting times for U.S. brands and small businesses looking to reach new customers. We are excited to help more U.S. businesses pursue their digital transformations and are proud to be a part of their success.
Sincerely,
Michael Evans, President and Director, Alibaba Group
The opportunities for American businesses to expand in China will continue to grow over the next decade. Morgan Stanley predicts that Chinese consumer spending will double by 2030. These increases will be driven in part by changing demographics, including population growth in urban areas. Population increases in specific age categories with higher spending, like the 35-45 age group, are expected to grow substantially.
Daniel Zipser, senior partner and head of McKinsey & Company’s consumer and retail practice in Greater China, notes that China’s growing middle class is increasingly open to conducting this spending online, creating opportunities for U.S. brands. “Consumers are digitally savvy and eager to explore new types of digital engagement and new ways to purchase goods, and we’ve seen a substantial acceleration of this over the last few months.” Zipser believes there are enormous opportunities for brands that innovate digitally and seize the opportunity to reach this massive consumer market. And the opportunity is not just for new brands, but also for brands and small businesses that are already on Alibaba’s platform.
While Stride Rite has been in the Chinese market for more than a decade, it is taking steps to expand its reach through Alibaba’s Tmall platform. The iconic U.S. children’s shoe brand’s goal is to reach China’s rapidly growing generation alphas – those born after 2010 to millennial parents. Stride Rite understands these younger parents are more comfortable with e-commerce and are looking for a more interactive online experience. The company views Alibaba as an essential partner in reaching these new customers.
“We looked at Alibaba and said, ‘We consider ourselves best in class. We have to go with the best in class.’ And that’s how we ended up partnering up with Tmall,” said Brian McManus, executive vice president and general manager at Stride Rite.
Stride Rite launched its online storefront through Tmall in advance of Alibaba’s 11.11 Global Shopping Festival, where U.S. brands made more than $5.4 billion in sales last year. Its online store includes a toolkit that allows parents to measure their child’s shoe size without traveling to a physical store, resulting in a 10% reduction in returns. Stride Rite also uses Alibaba’s analytics to make customer observations and adjust product lines, such as increasing its selection of wider shoe sizes after reviewing customer data.
It is clear Stride Rite views China and its partnership with Alibaba as key to the future of its business abroad. “From product positioning, customer acquisition and campaign planning to logistics, livestreaming and more, Tmall provides a fantastic platform for Stride Rite to enhance its business in China’s dynamic market and will act as a foundational pillar of the brand’s growth across Greater China for years to come,” notes Alex Palmer, vice president of WPIC Marketing + Technologies, Stride Rite’s third-party service provider in China.
Last month, Alibaba’s Tmall unveiled a new 3D shopping platform for home-furnishing brands. Alibaba developed the tool to help brands reach customers during the pandemic and features more than 10,000 immersive 3D showrooms. Interior designers use Tmall’s design tools to mimic a real-life showroom experience where consumers can browse and examine products through Virtual Reality (VR) technology. On a virtual store visit, customers can experiment with different sizes, patterns, and color themes, while navigating a virtual floorplan that allows them to explore thousands of options. U.S. brands like La-Z-Boy even created virtual stores that are replicas of their landmark physical stores. You can learn more about the tool here.
On June 25th at the National Retail Federation’s Converge Conference, Alibaba President Michael Evans and fashion icon Diane von Furstenberg will discuss how the pandemic brought about a digital transformation for many brands, including DVF. DVF is one company that found success via Alibaba’s innovative marketing tools like livestreaming. Evans and von Furstenberg will examine the pandemic’s impact on retail and the opportunities for American businesses within the Chinese market. You can learn more about the session here.
Small Business Week is a time to acknowledge the enormous resilience of American small businesses. Last year, many business and civic leaders wondered how entrepreneurs would survive an unprecedented pandemic and economic slowdown. Yet, many small business owners rose to the challenge through determination and innovation.
Now, many businesses are evaluating how they can move forward and take advantage of what many experts believe could be an economic boom. Based on our experience, it’s clear that there are enormous opportunities for businesses willing to go digital and go global. These opportunities are available for large corporations and small and medium-sized businesses through technological innovation.
A recent Euromonitor study found that the global e-commerce market is poised to expand by $1 trillion by 2025. Meanwhile, rising consumer spending power and enthusiasm for online shopping are driving growth in markets like China. Now is the time for U.S. businesses to take advantage of these opportunities, and we stand ready to support them.
On March 25th, Alibaba hosted a virtual summit to educate North American brands looking to grow their international sales by selling cross border on our marketplace, Tmall Global. An important part of this education includes helping brands protect themselves as they expand into global markets. Some might not be aware that Alibaba has a robust intellectual property protection program in place for large and small brands alike. This month we were pleased to accept an award from the World Trademark Review for our achievements.
The U.S. Chamber of Commerce recently described Alibaba as “a portal to millions of buyers and sellers around the world.” Our mission – to make it easy to do business anywhere – is what drives us to work with U.S. businesses to help them find growth and new consumers around the world.
Sincerely,
Michael Evans, President and Director, Alibaba Group
Accessing China’s growing market often can seem daunting for many U.S. brands.
On the one hand, American consumer brands are increasingly aware that China is the largest retail market in the world. Research firm eMarketer states that China overtook the U.S. in this category in 2020. On the other hand, these same American brands have limited familiarity with China -- or no familiarity at all. And they know there are significant gaps in culture, lifestyle, and language.
So how realistic is it for a U.S. brand to allocate management time to exploring and building out the China market? The enormous potential of the market is offset by its (perceived) enormous complexity.
Fortunately, Alibaba -- through its Tmall platform -- bridges the gap between market size and potential and that complexity. Tmall is the largest B2C platform in the world and it currently boasts over 250,000 brands, with U.S. businesses selling more than $54 billion worth of goods to Chinese consumers in 2020.
Because not only is China the largest retail market in the world, it is also the largest ecommerce market in the world. Over 50% of all retail sales in China are online. For goods in the mass-premium and premium spaces -- where many U.S. brands tend to fall -- that percentage is bound to be higher.
Because not only is China the largest retail market in the world, it is also the largest ecommerce market in the world. Over 50% of all retail sales in China are online. For goods in the mass-premium and premium spaces -- where many U.S. brands tend to fall -- that percentage is bound to be higher.
So with a stand-alone ecommerce strategy, a U.S. brand can cover a solid majority of the China market. Tmall allows a brand to enter the China market without ever (1) visiting China; (2) setting up a China legal entity, or (3) hiring anyone in China.
As the costs of market entry drop, China has become accessible to a range of mid-tier and junior brands which historically might not have been able to enter. Tmall does not eliminate commercial challenges facing American brands, but it does dramatically reduce market entry costs so that your break-even point is reduced dramatically.
Americans tend to view ecommerce in the U.S. as an augmentation tool, whereas in China it leads the marketing effort. In the U.S., ecommerce is icing on the cake. In China, ecommerce is the cake.
Frank Lavin is the founder and CEO of Export Now, a U.S.-based Tmall Partner assisting U.S. brands. He formerly served as U.S. Undersecretary of Commerce for International Trade
Josh Ghaim, CEO and Co-Founder of New Jersey-based Small World Brands, the parent company of Nuria Beauty, participated in Alibaba's Tmall Global Summit to share the story of how a startup like Nuria Beauty can go global through Alibaba.
Nuria Beauty, an American skincare startup that launched in 2019, accelerated its plan to enter the Chinese market after the COVID-19 pandemic hit. While U.S. businesses were closing their doors during nationwide shutdowns in the early days of the pandemic, Nuria Beauty expanded its market abroad in partnership with Alibaba’s Tmall Global platform.
Ghaim notes that “Alibaba and Tmall take care of all the difficult technologies and sophistication of the system to make it very simple so that you’re able to actually access customers directly in the China market.
By leveraging Alibaba’s digital technologies, Nuria Beauty effectively expanded into the global market and sold directly to Alibaba’s 800+ million customers during a time of economic uncertainty. Nuria Beauty benefited from Tmall Global’s data targeting strategy, which helped the brand understand China's retail landscape and opportunities, and position them to succeed in the market.
Alibaba Group’s recently released 2020 annual report on IPR protection showed the company is making substantial gains in its work to protect brands. The company introduced new technology and worked with rights-holders and consumers to identify IP issues and address them swiftly.
Last year, the company launched “ZaoMang,” an innovative artificial intelligence tool to help identify trademark infringements. The tool helps small and medium-sized businesses navigate the complex trademark registration process.
Alibaba also makes IP protection more accessible for small and medium-sized enterprises via its SME Support Center. The Center helps reduce IPR enforcement's complexity and works with SMEs to address issues specific to smaller companies. Alibaba established an SME Advisory Committee in 2020 to provide a forum where smaller companies can discuss issues they face in IPR protection and enforcement.
These efforts have resulted in 96% of suspected IPR infringing listings being proactively detected and removed before a sale could be made. Meanwhile, the number of IPR infringements reported by consumers dropped 33% year-over-year and 98% of intellectual property complaints were handled within 24 hours.
Alibaba’s head of global IP enforcement Matthew Bassiur was recently recognized in World Trademark Review’s ranking of the top 25 trademark industry influencers. The WTR said that Bassiur played an instrumental role in driving the growth of Alibaba’s collaborative efforts with external stakeholders on IP rights enforcement, including his work through the Alibaba Anti-counterfeiting Alliance. The alliance brings rights holders and other IP stakeholders together to share industry and technical expertise in the fight against IP infringers.
As we celebrate Women’s History Month, Alibaba is proud to recognize the accomplishments of women entrepreneurs around the world, including many in the U.S. The past year has been challenging for business owners struggling to overcome the impact of the pandemic. This month, Alibaba is shining a spotlight on four women entrepreneurs from the U.S. who led their companies successfully through these difficult times and grew their businesses globally while facing extraordinary challenges.
We are proud to work with these women and thousands of other U.S. brands to help them expand their business globally. You can learn more about their successful companies below.
Last month, we continued our work to help more U.S. businesses expand globally. We held our first-ever Global Products Expo, which featured a “Made in the USA” event. Over 15,000 American products were showcased during the virtual expo, reaching more than 50,000 unique visitors. On March 25, we will host a webinar to help more U.S. business owners understand China's retail landscape and how they can grow their sales through Alibaba’s e-commerce platforms.
As spring begins, I am optimistic that businesses will begin to emerge from the pandemic stronger, and we look forward to helping more U.S. entrepreneurs continue to break new ground on our e-commerce platforms.
Sincerely,
Michael Evans, President and Director, Alibaba Group
Meet four women entrepreneurs, who at the height of the pandemic last year, successfully navigated the uncertain economic climate to grow their businesses globally through their partnerships with Alibaba.
SENREVE
San-Francisco-based luxury handbag and accessories company SENREVE had one of its top global sales performance days during its first-ever 11.11 Global Shopping Festival last year.
Ahead of 11.11, the company worked with Alibaba’s B2C cross-border platform Tmall Global to forecast and secure inventory when the pandemic caused the brand’s factories in Italy to close for over two months. SENREVE also used Alibaba‘s consumer analytics and insights to refine its launch strategy, leading to tremendous sales for the company. SENREVE’s digital storefront on Tmall Global now drives an estimated 90 percent of the brand’s total sales in the market, with China representing half of all its international business.
Antica Farmacista
In February 2021, Antica Farmacista, a Seattle-based fragrance company, showcased its home fragrance products during a 10-minute livestream hosted by China top influencer on Alibaba’s Tmall Global.
The event was overwhelmingly successful, drawing an estimated 10 million viewers and resulting in thousands of sales within minutes.
Susanne Pruitt, a co-founder of Antica Farmacista, spoke with Women’s Wear Daily about their decision to partner with Alibaba to promote the brand to Chinese consumers. She said, “Our business in China has taken off during 2020 and we are excited about our future as both prior and new customers have discovered our brand again in the Chinese market.”
Supergoop!
In February 2020, San-Antonio-based Supergoop! made its debut in China through Alibaba’s Tmall Global platform as the coronavirus first began to spread around the world.
Supergoop! was able to effectively reach Chinese consumers, who had been shopping for beauty products online from the comfort of their homes during the pandemic. Tmall Global’s marketing tools and data analytics helped the company understand Chinese consumers and communicate with them more effectively during their launch. In just a few weeks, the brand sold out of its stock and had to quickly adjust its supply chain to keep pace with the booming demand
Amanda Baldwin, CEO of Supergoop!, said, “Expanding into China with Alibaba has been truly a game-changer for us as a brand. I’ve always known that we needed a partner who could help us reach this incredibly important group of beauty enthusiasts and do it in a way that felt right for our brand. Having that combination has been super powerful.”
I recently had the pleasure of speaking with Barbara Kahn, Patty and Jay H. Baker Professor of Marketing at the Wharton School of The University of Pennsylvania, about New Retail technologies, China’s consumer market and the future of luxury for her SiriusXM Marketing Matters show.
It was a great discussion on how Alibaba is enabling brands to digitize operations and position themselves for growth. Here are a few of the highlights from our conversation:
One of many things to celebrate during Women’s History Month is the seismic growth in women’s entrepreneurship that has made our global economy more vibrant and inclusive. Women are running or have started approximately 250 million small businesses across the world. In the U.S., women own 42% of all businesses – about 13 million, pre-COVID – and they launched, on average, 1,817 new businesses per day between 2018 and 2019. These gains are very positive for women’s financial security and empowerment, yet women entrepreneurs still face unique barriers, which have only intensified during the pandemic.
Thankfully, technology helps women entrepreneurs bridge the gap in key areas, such as access to markets and capital, which are critical to survival, growth, and success.
According to a February 2021 Small Business Roundtable/Facebook “State of Small Business Report,” women-owned small businesses that have successfully reopened or stayed opened during the pandemic quickly shifted to online tools, which was cited as one of the most important factors that helped them survive. With the massive shift to online commerce, platforms that connect women entrepreneurs to consumers have served as a lifeline, and it seems there’s no turning back.
This has been the silver lining of the pandemic – the crisis has led many women entrepreneurs to find new tools and platforms that connect them to new or unexplored markets, both global and domestic. Alibaba platforms stand out in this regard, and women entrepreneurs have found significant success in tapping into the Chinese market.
Daya Fields, president of Pipette, a startup that makes clean baby care products, said Alibaba’s Singles Day was the ideal opportunity to learn about the Chinese consumer to guide a growth strategy that will help her company succeed on the Tmall Global platform over the long-term. Due to U.S. retailers “pulling back” on lesser-known brands during the pandemic, Fields said new partnerships and global markets are essential to survival and success.
For many years, advocates for women entrepreneurs have said that equitable access to markets, capital, and technical support would provide women business owners with the tools they need to reach success parity with their male counterparts. With the support and market access provided through platforms like Alibaba, women entrepreneurs have found equal footing and are quietly but powerfully shaping the global marketplace.
Thousands of American businesses, such as BISSELL, Fender, and Radha Beauty, rely on Tmall Global, Alibaba’s dedicated channel for cross-border e-commerce, to expand their businesses overseas. On March 25, Alibaba is hosting a virtual Global Summit to educate North American brands looking to grow their international sales on how they can work with Alibaba to reach and engage Chinese consumers.
In February, Alibaba hosted a special two-week “Global Products Expo: Made in the USA” to help American B2B companies sell locally made products overseas. The event provided a new level of exposure for U.S. brands in the Chinese market, with over 175 U.S. businesses participating and 15,000 American products showcased throughout the expo. While the show attracted over 50,000 unique visitors, approximately 70% of attendees surveyed were not aware Alibaba.com had U.S.-based suppliers before attending the Made in the USA Expo.
The retail industry has changed in ways that will outlast the COVID-19 pandemic. U.S. online retail sales increased by 44% last year to $861 billion as consumers shifted to online shopping. However, according to a study by First Insight, consumers will not be rushing back to brick-and-mortar stores even if they are fully vaccinated. This presents both challenges and opportunities for brands and retailers in the future.
We believe the key to success in this new era for retail comes down to two things: digitization and willingness to look to new markets for growth. Last year, U.S. brands, retailers and SMEs sold more than $54 billion of products to Chinese consumers through Alibaba’s platforms, helping to offset the impact of the pandemic by finding new ways to reach and engage global customers.
I spend a great deal of time with the U.S. retail community explaining the opportunities Alibaba offers and I am grateful to our brand partners for their willingness to share their advice on how to succeed in China. For example, Wharton Business School hosted an event for its community of business leaders where Todd Kahn, CEO and Brand President of Coach shared the reasons Coach is the top-ranked brand on our Tmall platform. And to celebrate Chinese New Year, we hosted a virtual event for the top retail and e-commerce analysts and industry leaders around to the world to exchange ideas on the future and hear from ten small businesses who started selling to China on our platforms during the pandemic.
In February, we also hosted our first-ever Global Products Expo, featuring a “Made in the USA” event. The two-week virtual expo helped hundreds of U.S. businesses connect with customers around the world.
As we welcome the Year of the Ox, we remain optimistic that U.S. brands will grow and thrive with the help of Alibaba’s platforms.
Sincerely,
Michael Evans, President and Director, Alibaba Group
With over two million online retailers, e-commerce is a critical pillar of the U.S. economy. Beyond retail, e-commerce is also an essential sales channel for America’s B2B companies, especially for international sales where traditional channels, i.e., in-person trade shows and meetings, have been stifled by the pandemic.
Last year, Alibaba launched a series of virtual trade shows designed to enable U.S. businesses to connect with international buyers remotely. In February, Alibaba.com, the B2B trade platform of Alibaba Group, hosted a special two-week “Global Products Expo: Made in the USA” to help American B2B companies sell locally-made products overseas. Over 15,000 American products were showcased throughout the expo.
These products came from hundreds of U.S. businesses, including ACME Smoked Fish Corp. from New York, Mason Vitamins from Florida, and X.J. Beauty from California. Watch the video below to learn how these companies were able to engage with international buyers remotely.
With over two million online retailers, e-commerce is a critical pillar of the U.S. economy. Beyond retail, e-commerce is also an essential sales channel for America’s B2B companies, especially for international sales where traditional channels, i.e., in-person trade shows and meetings, have been stifled by the pandemic.
Last year, Alibaba launched a series of virtual trade shows designed to enable U.S. businesses to connect with international buyers remotely. In February, Alibaba.com, the B2B trade platform of Alibaba Group, hosted a special two-week “Global Products Expo: Made in the USA” to help American B2B companies sell locally-made products overseas. Over 15,000 American products were showcased throughout the expo.
These products came from hundreds of U.S. businesses, including ACME Smoked Fish Corp. from New York, Mason Vitamins from Florida, and X.J. Beauty from California. Watch the video below to learn how these companies were able to engage with international buyers remotely.
Alibaba Group President Michael Evans joined business leaders including Todd Kahn, CEO and Brand President of Coach; Amanda Baldwin, CEO of Supergoop!; and Danielle Bailey, Managing Vice President, APAC, at Gartner L2, for a virtual discussion on developments in the digitization of the retail industry in China.
Evans noted how businesses have thrived by digitizing every aspect of their operation, including sales, marketing, logistics, and sourcing. Amanda Baldwin, CEO of Supergoop!, a Texas-based skincare company, explained how the brand leveraged Alibaba’s consumer insights and marketing tools, including livestreaming, to effectively engage with Chinese consumers who have been increasingly looking for beauty products online during the last year.
The panelists also discussed the importance of understanding the Chinese consumer. These consumers tend to be younger, willing to explore new products, and less likely to distinguish between e-commerce and traditional retail. Alibaba’s Tmall Innovation Center provides businesses real-time insights by analyzing consumer sales data to adjust their marketing strategy and meet new customers' demands.
U.S. retailers are increasingly finding success with innovative tools like livestreaming on Alibaba platforms, which had already been a fixture of Chinese retail. With the help of Alibaba, Coach’s new 3D-shopping feature enables Chinese customers to browse and purchase Coach products at their Fifth Avenue store in New York.
Read more about the Wharton forum here.
Last month, we celebrated Chinese New Year with a virtual discussion on the future of retail and the opportunity the Chinese market presents to U.S. brands. The event included top business influencers, research analysts, investors, industry association executives, brand consultants, academics, and other prominent industry voices, including Alibaba President Michael Evans and National Retail Federation President and CEO Matt Shay.
American business executives from companies that started selling to China via Alibaba for the first time amid the pandemic joined the event to share their positive experiences. The companies included Antica Farmacista, C.O. Bigelow, Everlane, Fenty Beauty, Nuria, Senreve, Supergoop!, Uncle Bud’s, and Whittard of Chelsea. Alibaba was proud to work with these brands to help them thrive during an otherwise challenging and uncertain period.
Here are some of the key takeaways they provided from the discussion:
Tmall’s Hey Box is an innovative platform that helps U.S brands generate excitement for new product launches. Hey Box provides creative ways to introduce products to consumers through personalized recommendations based on their unique tastes. More than 180 million users visit the platform each month. They can find new products through tools like livestreamed demos and online lotteries for highly anticipated items.
American brands like Starbucks, Nike, and Converse have hosted online drawings using Hey Box’s raffle tool, HeyDrop. The drawings create anticipation for in-demand items like exclusive sneakers, celebrity merchandise, and toy collectibles.
Hey Box also helped New York-based skincare brand Kiehl’s identify its target audience and test sample products with consumers. Feedback from the test audience informed Kiehl’s product development and helped it gain insights into the best ways to increase new products' sales.
“Tmall Hey Box has an influential power on consumers who love to try new products while allowing brands to command the valuable attention and focus of the Chinese market onto exciting new products,” said Cheryl Vitali, worldwide general manager of Kiehl’s.
Alibaba’s mission has always been to make it easy to do business anywhere, and as the pandemic continues to rage throughout the U.S., this mission has never been more important. In 2020 alone, we helped many overseas brands rethink their e-commerce strategy by tapping into the massive China consumer market. Demand for imported goods in China hasn’t slowed during this period; it has simply shifted online.
We are accelerating our efforts to bring new U.S. companies onto our marketplaces, helping our existing clients digitize their offline retail stores in China, and innovating to help brands and small businesses engage consumers in new ways.
Here are a few examples:
As we continue to navigate these uncertain times, Alibaba remains committed to helping American businesses reach global markets to satisfy the strong Chinese consumer demand for U.S. products.
On January 19th, we held our first-ever virtual Tmall Global summit, and more than 200 U.S. brands tuned in to learn about the China opportunity. And next month, our B2B marketplace business Alibaba.com will host its first-ever U.S. trade show to promote the U.S. sellers on the platform and help them connect with buyers around the world.
We are proud of our work and look forward to continuing to partner with American businesses to build on last year’s successes and emerge even stronger in 2021.
Sincerely,
Michael Evans, President and Director, Alibaba Group
Tmall Global is Alibaba’s cross-border platform and the way many brands enter China without a physical presence in the China market. We enable large and small U.S. brands to reach Chinese consumers by helping them with marketing, brand-building, logistics, and payments.
On January 19th, 2021, Tmall Global hosted our first-ever worldwide virtual summit with regional and category-specific content for the U.S. market. More than 200 U.S. merchants participated to learn about the cross-border e-commerce landscape and market insights in China.
We are seeing increased interest from U.S. brands in going global. In fact, 2020 was a record year for U.S. brands, with around 45% YoY growth for a number of brands joining the platform.
While the pandemic has halted international travel, Chinese consumers are still looking for international products. Sales on Tmall Global grew more than 40% this past year, and our user base grew by 20%.
We expect 2021 to be another banner year for cross-border e-commerce and are looking to add even more U.S. brands to the platform to help them find growth and new customers. We welcome all interested brands and merchants to explore this new market opportunity and look forward to connecting with them this year.
As we look back at 2020, certain industries have successfully adapted to the pandemic, and by doing so, have found success on Alibaba’s platforms. Several U.S. brands in the following sectors used Alibaba’s marketing tools and global reach to expand their businesses abroad.
Luxury
The pandemic accelerated the digitization of China's luxury market with e-commerce luxury sales rising over 150% in 2020. American brands, including Marc Jacobs and Coach, have benefitted from sales on the Tmall Luxury Pavilion, Alibaba’s dedicated platform for luxury and premium brands.
Floor Care
With rising concerns over health and home hygiene, there has been a surge in demand for floor-care products in China since the start of the coronavirus outbreak. The 144-year-old Michigan floor care company, BISSELL, drew on market insights from Alibaba to generate growth even during these challenging times. To address coronavirus-related disruptions to its supply chain, Bissell tapped Alibaba’s digital tools and strategies. In its Tmall online store, it began using a recommendation feature that redirects consumers browsing out-of-stock items to pages listing similar products. This helped the company keep up with consumer demands while effectively managing its inventory. Insights from Alibaba also showed that consumers would continue to focus on home hygiene, even after the coronavirus, leading BISSELL to develop new products that meet those needs.
Beauty and Wellness
The San Antonio, Texas-based skincare company, Supergoop, leveraged Alibaba’s consumer insights and marketing tools, including livestreaming, to effectively engage with Chinese consumers who have been increasingly looking for beauty products online amid the pandemic.
The beauty and wellness sector also benefited from Tmall Global’s Overseas Fulfillment solution during the holiday shopping season. More than 80 U.S. brands and retailers prepared over 120,000 products that moved from the U.S. to China in as quickly as 72 hours upon order through Alibaba's fulfillment operation.
Learn more about how U.S. brands are beating the odds and increasing sales during the pandemic here.
In October 2019, Califia Farms, a leading plant-based food and beverage company based in Los Angeles, California, partnered with Alibaba to sell their oat and almond-based products to Chinese customers on Alibaba’s Tmall Global e-commerce platform.
Plant-based milk has grown in popularity among Chinese consumers in recent years. Statistics from Alibaba’s market-research division (the Tmall Innovation Center) show the category has seen an 800% growth year-over-year in China.
To tap into this growing market, Califia Farms leveraged Tmall Global to study consumer taste and flavor preferences and launch products tailored to Chinese consumers. Califia Farms learned more about consumers’ preferences by monitoring community reactions and insights on the platform and offered an unsweetened version of its beverages, becoming a top seller in China.
Speaking about Califia Farm’s partnership with Alibaba, Greg Steltenpohl, founder of Califia Farms, said:
Next month, Alibaba.com, the B2B trade platform of Alibaba Group, will host a special two-week long “Global Products Expo: Made in the USA” promotional drive on its homepage for American businesses to sell their products. More than nine million visitors from around the world come to Alibaba.com every day. The Made in the USA event provides an incredible opportunity for the participating American small and medium-sized manufacturers, wholesale and distribution businesses, and brands to engage buyers from around the world. To learn more, check out this site or just visit Alibaba.com from February 8-21.
2020 has been a challenging year for all of us. Despite these challenges, we’ve seen many companies adapt and innovate to expand their businesses internationally. During this period, Alibaba has helped hundreds of U.S. companies embrace e-commerce and digital strategies to expand their businesses overseas to help overcome the effects of the pandemic. We are committed to doing more of this in 2021 and beyond.
For many years Alibaba has worked with American small businesses, farmers, and major brands and retailers to sell everything from agricultural products to cosmetics and fashion items to markets worldwide. In 2020, Alibaba expanded these efforts and established new initiatives to support American businesses.
During our 11.11 Global Shopping Festival, we helped thousands of U.S. brands, big and small, find new customers in China. Overall, participating U.S. brands generated $5.4 billion in sales to Chinese consumers. Alibaba’s Go Global 11.11 Pitch Fest also helped U.S. small and medium-sized brands successfully participate in the world’s largest shopping event for the first time.
Our Digitization Sprint for U.S. Manufacturers program is helping to educate U.S. manufacturers interested in learning how to digitize their businesses. The four-week program teaches SMEs the fundamentals of online marketing, selling, and sourcing to accelerate their digital transformation and ensure long-term success.
We also continue to prioritize our commitment to protecting the hard-earned intellectual property of businesses through theAlibaba Anti-Counterfeiting Alliance. We are proud to have been recognized by the National Intellectual Property Rights Coordination Center, the U.S. Department of Homeland Security’s key investigative branch and 23 other federal agencies for our efforts to combat IP theft and safeguard consumers.
These are just a few examples of our work with American businesses in 2020. In the new year, we will continue to advance our digital technologies and innovation to serve American brands and SMEs, helping them connect with international markets to grow their customer base and sales.
Sincerely,
Michael Evans, President and Director, Alibaba Group
On November 19, 2020, the National Intellectual Property Rights Coordination Center (IPR Center), the U.S. Department of Homeland Security’s key investigative branch and 23 other federal agencies officially recognized Alibaba Group for its efforts to combat IP theft and safeguard consumers.
“We are proud to recognize the company’s unwavering commitment in protecting intellectual property rights and consumer health and safety,” said IPR Center Director Steve Francis, noting Alibaba is the only non-American marketplace to win an award.
Alibaba Vice President and Head of Global IP Enforcement Matthew Bassiur stressed the global nature of IP protection, noting Alibaba collaborates with external stakeholders, including other award recipients, “because it’s the right thing to do, regardless of borders.”
“We know who the bad guys are, and when we work together, we are a heck of a lot stronger than when we work siloed,” Bassiur said.
Earlier this year, DHS and the IPR Center acknowledged Alibaba’s contributions in combating fraud and other illegal activities related to Covid-19.
Alibaba is among 25 companies and entities working since April with the IPR Center to “effectively disrupt and dismantle Covid-19 criminal networks and strengthen global supply-chain security,” according to a press release. Homeland Security said the collaboration also aimed to strengthen global supply-chain security and protect the American public.
If there is a silver lining to the pandemic, it is that the shocking disruption spawned by restrictions and shutdowns has given many SMEs a fresh perspective on how digital tools and platforms can help them identify new customers and market opportunities for survival and growth and to operate their businesses more competitively.
Technology and e-commerce platforms have been a life-saver and the acceleration to all things digital has opened up important new possibilities. With this shift in both mindset and operations to digital commerce, entrepreneurs are finding that going global has never been easier, thanks to platforms like Alibaba.
In the past, the time, costs and complexity of going global have been significant barriers to selling overseas for small business owners, but this no longer is the case. Technology has changed the game and digitization is no longer a nice to have – it’s a necessity.
During Alibaba’s annual 11.11 Annual Global Shopping Festival, U.S. brands and small businesses generated $5.4 billion in sales. This event's success has not gone unnoticed by many entrepreneurs as they search to identify new markets to rebuild from the pandemic. They have quickly realized that with 95% of global customers living outside of U.S. borders and 60% of the world’s population on the internet, they will miss out on extraordinary opportunities to reinvigorate and grow their customer and sales base if they do not digitize their operations.
While the pandemic has caused immeasurable pain on Main Street – and millions of small businesses will, unfortunately, be lost – the good news is that entrepreneurship is stronger than ever. According to the Census Bureau, new business applications are surging, and high-propensity business applications (those with a higher likelihood of launching soon after filing and adding employees) total about 1.4 million. That is 15% higher than at this point in 2019.
Due to technology and e-commerce platforms, many of these new businesses can and will become global businesses from day one. Even the smallest of small businesses can now succeed in the global marketplace, accelerating job growth and economic recovery.
Looking ahead to 2021, policy leaders need to support the critical ecosystems helping SMEs better navigate economic uncertainty through connectivity to the global marketplace. In addition to our work educating small businesses about the ease of going global, the SBE Council will educate policy leaders and elected officials about how dynamic ecosystems and platforms help our economy rebound and thrive during this challenging period and beyond.
Alibaba’s 11.11 Global Shopping Festival was a moment of triumph for U.S. musical instrument maker Fender. In an interview during the festival, Fender CEO Andy Mooney spoke about how his company has overcome significant challenges during the pandemic.
“We were very concerned in mid-March when 90% of our dealers who had physical stores closed,” said Mooney. “But very quickly, we found consumers who were locked down were using their time beneficially to learn how to play guitar.”
When the company's dealer network was disrupted during China's months of lockdown, Tmall, Alibaba’s B2C online marketplace, provided a trusted resource for consumers to access and learn about Fender products. Fender was able to not only survive but also thrive during the pandemic because it had an e-commerce infrastructure in place that allowed it to swiftly shift its business to digital channels and avoid offline disruptions. Sales from Fender's flagship store on Tmall increased by over 50% from the beginning of the year.
“We’re going to have a record year in China,” Mooney continued. “Tmall sales in particular will continue to grow as a percentage of our total business. We’re thrilled with the success of our business in China.”
You can watch the full interview and learn more about 11.11 here.
During the 11.11 festival, in partnership with Alibaba, U.S.-based fashion house Coach launched an immersive 3D feature to provide customers with an innovative online shopping experience during Alibaba’s highly anticipated global shopping festival.
Coach’s new virtual shopping feature enabled Chinese customers to browse and purchase Coach products at their Fifth Avenue store in New York – from the comfort of their own homes. This feature provided a real-life shopping experience for Chinese customers unable to travel abroad due to the pandemic.
With the growing demand for luxury and designer products in China, the market has become critical for Tapestry, the parent of Coach, Stuart Weitzman and Kate Spade luxury brands.
During 11.11 presales, Coach sold $1.5 million in gross merchandise volume – exceeding their 11.11 sales record from the prior year within just the first hour of the event. Coach, which reported a sevenfold increase in gross merchandise volume, was one of the top-selling brands in the handbag, luggage and leather goods category during 11.11.
President and CEO of Coach China, Yann Bozec, spoke about Coach’s partnership with Alibaba. Bozec said, “Both Coach and Tmall are very customer-centric, and both are also deeply believing in innovation, data centricity, as well as the future of globalization in the digital world.”
On November 11, Alibaba concluded its 12th annual 11.11 Global Shopping Festival. The event also known as “SinglesDay,” is the world’s largest online shopping event. This year, more than 800 million consumers and over 250,000 brands – 31,000 internationally – participated in our annual global sales extravaganza. Thousands of U.S. brands and SMEs such as Fender, C.O. Bigelow, Allbirds and BISSELL were at the forefront.
Overall, the global eventreached a total of $74.10 billion in sales. U.S. brands, retailers, SMEs and farmers generated $5.4 billion insales, the largest sales figures from a single country or region outside ofChina. The SME winners of our U.S. 11.11 Go Global Pitch Fest also participated in Singles Day for the first time this year, and had the opportunity to reach hundreds of millions of new customers and grow their customer base and brand recognition.
Global brand recovery was a key focus of Singles Day 2020 as businesses continue to adapt and recoverfrom the pandemic. For that reason, the event featured two shopping windows -the first from November 1-3 and the second for 24 hours on November 11. This allowed more opportunities for brands and merchants to profile existing and innovative products and more time for consumers to browse, enjoy livestreaming, and engage with interactive content and entertaining shopping experiences.
Family-owned and Michigan-based floor care company BISSELL was just one of the companies that had a highly successful 11.11. “I'm happy to report we had areally great year! We livestreamed from our office to Tmall for 16 hoursstraight,” said Max Bissell, the company’s director of deep-cleaning systems. “The scale in China is huge... we worked closely with the Tmall team with the goal to quadruple our sales [from last year's 11.11]. We're pleased to share that we overdelivered and the team in Michigan is ecstatic.”
We are proud of the success of this year’s event, which increased support for merchants affected by COVID-19 and offered unique opportunities for Chinese consumers to purchase from U.S. brands. We look forward to building on the success of 11.11 and continuing to help U.S. businesses grow globally and emerge from thepandemic in a stronger position.
This program explains why the Chinese market is such a big opportunity for U.S. brands and how Alibaba is helping them succeed.
Speakers include:
San Francisco–based Allbirds is known for its commitment to sustainability and its eco-friendly shoes. The brand, which recently expanded into apparel, launched on Tmall in April 2019. When the pandemic hit and stores closed, Allbirds leveraged Alibaba’s technology to help its brick-and-mortar staff pivot from dealing with consumers directly in-store to supporting e-commerce fulfillment and providing customer service virtually. Allbirds also leveraged Alibaba’s digital technology to enable live video chat, so Chinese consumers could speak with retail staff and view products online in real time.
For this year’s 11.11 Global Shopping Festival, Allbirds released a special edition shoe designed exclusively to appeal to Chinese consumers. In addition, the brand utilized the festival to educate Chinese shoppers about its sustainably made products and to raise awareness of its carbon reduction efforts.
Based in California, Uncle Bud’s launched its hemp and CBD health productson Alibaba’s Tmall Global during the 11.11 Global Shopping Festival with thehelp of a familiar face: NBA superstar Earvin “Magic” Johnson.
Johnson, an UncleBud’s brand partner, conducted a livestreaming session from LA straight toChinese consumers to promote the launch of the brand. Speaking of hisopportunity to engage with Chinese consumers Johnson said, “they get a chance tomeet Magic Johnson and get to know me, and I get to talk to them directlymyself.”
In a recent Forbes interview, Johnson also spoke about the enormous opportunity that sellingthrough Alibaba provides for Uncle Bud’s. “I’m excited to bepart of this significant development and business expansion for Uncle Bud’s because China has an enormous buying power and a large consumer base. The Tmalllive event is a great way to connect with this viable market and introduceUncle Buds products to a new customer base.”
Recently, I sat down with the National Retail Federation (NRF) President and CEO Matt Shay to discuss Alibaba’s work to connect American brands, retailers and SMEs with new growth opportunities abroad. For Matt, the NRF, and its members, 2020 has been an especially challenging time. To adapt during the pandemic, businesses have had to turn to e-commerce and global markets to diversify and grow their businesses.
I am proud to say that Alibaba has stood with these companies to help them through this transition. With many storefronts closed during the pandemic, Alibaba has empowered American companies by digitizing their businesses and helping them reach global markets. We are continuing to invest in building our digital capabilities, offering new and innovative tools and strategies to help American brands generate sales, engage with customers, rebuild their businesses and recover.
Alibaba recently launched its inaugural Digitization Sprint for U.S. Manufacturers, which will give manufacturers the support they need to digitize and grow globally. We are also working to protect the hard-earned intellectual property of small and medium-sized businesses through the Alibaba Anti-Counterfeiting Alliance.
Last week we unveiled plans for our 2020 11.11 Global Shopping Festival (also known as “Singles Day”). It’s is not only the world’s largest shopping event — last year’s sales topped $38 billion in 24-hours. Singles Day provides an opportunity to showcase American brands, retailers and SMEs that are adapting, thriving, and reaching new customers through Alibaba’s platforms.
This year we will host a live virtual event Global Opportunities: Understanding 11.11 on November 11th for U.S. audiences to learn about the Chinese consumer market and to hear directly from some of the U.S. brands that are selling their U.S. products there. The U.S. small business winners of our first-ever 11.11 Go Global Pitch Fest will talk about their first 11.11 experience. You can see more information about the event and register here.
While Alibaba has been helping American brands grow globally for more than two decades, today this work is more important than ever. We look forward to helping thousands of American brands find growth and new customers this November and into the future. I will be back in touch after the event to share details of their success.
National Retail Federation (NRF) President and CEO Matthew Shay hosted Alibaba Group President Michael Evans for an insightful discussion on how American businesses partner with Alibaba to find new customers, grow sales, and create jobs in the United States.
National Retail Federation (NRF) President and CEO Matthew Shay hosted Alibaba Group President Michael Evans for an insightful discussion on how American businesses partner with Alibaba to find new customers, grow sales, and create jobs in the United States.
Consumers may not intuitively think of fresh fruits and vegetables as part of the e-commerce landscape, but thanks to a robust global supply chain, shoppers worldwide can enjoy fresh produce year-round.
Fruit flows from Southern Hemisphere countries to supplement North American production in the off-season resulting in fruits like blueberries, oranges, and grapes always being available. A consistent flavor experience will help increase demand and sales for fresh produce and help fulfill the Produce Marketing Association’s (PMA) vision to grow a healthier world.
PMA members have first-hand experience taking their branded products and reaching vast Chinese customers through TMall and other Alibaba platforms. They have shared their success stories with me, especially surrounding Alibaba’s 11.11 Global Shopping Festival (aka Singles Day), and I’ve shared these as case studies of what the future will look like in other global markets.
In 2016, I had the opportunity to visit the Alibaba headquarters in Hangzhou, China. What a truly eye-opening experience for me to see the scale of transactions that were taking place in real-time.
The COVID-19 pandemic has certainly been a challenge for the fresh produce industry, but it has also highlighted the opportunities for selling products through new channels and platforms.
E-commerce, which was already on the rise, became a much more viable route to market when other channels were restricted or shut down.
It’s been estimated that the pandemic not only accelerated 10 years’ worth of e-commerce growth in just 3 months, it also spurred the creation of a new type of consumer in that same time frame. A consumer driven by convenience, safety, and an interest in improving personal health and well-being are attributes of people who buy fresh fruits and vegetables.
What has been commonplace for the Chinese consumer has become familiar to consumers in the United States and other markets over the past decade. Alibaba is well-positioned to take its B2B and B2C experiences in China and accelerate online and e-commerce opportunities in new markets.
This month, Alibaba.com released results from its second annual U.S. Small and Medium Business (SMB) Survey, which found that U.S. SMB manufacturers are digitizing at twice the rate of other industries during the pandemic.
Our research finds that digitization is no longer a nice-to-have but a must-have for companies in every industry to bridge from surviving to thriving in the next era of business.
To help U.S. SMBs accelerate the shift to e-commerce, Alibaba.com will launch a new “Digitization Sprint for U.S. SMB Manufacturers” program in November. We have assembled a team of experts who will give participating manufacturers a four-week masterclass in online marketing, selling and sourcing to ensure long-term success. The program will be offered to qualified manufacturers at no cost.
The research, which sampled more than 5,000 U.S. small and medium-sized businesses, was conducted by the leading global research firm Ipsos between September 4-20,2020. Other key findings from the survey showed that:
U.S. SMB manufacturers have tremendous potential to grow their online business and emerge from this pandemic better positioned for the future. Our first-ever Digitization Sprint will give manufacturers the curriculum, coaching, and community they need to accelerate their digital skills and access the $23.9 trillion global B2B e-commerce opportunity.
U.S. SMB manufacturers with fewer than 500 employees can apply to join the initiative at alibaba.com/digitalsprint.
For many American brands partnering with Alibaba, 11.11 is one of the biggest growth drivers every year –and this year will be no exception. This year’s event will provide broader consumer reach and bigger promotions, double the number of shopping windows that will spotlight brands, products and special offers, and the popular livestreaming technology creating more fun and engagement for consumers.
A new sales window will also be added from November 1 to 3, ahead of the main event, to provide new brands and small businesses the opportunity to showcase their products and tell their stories amid the pandemic.
More than 100 small and medium-sized U.S. brands applied for the chance to join the Go Global 11.11 Pitch Fest for an opportunity to break into the China market and participate in Alibaba’s 11.11 Global Shopping Festival. The winners are gearing up to sell to Chinese consumers looking for new, specialized brands at the 11.11 Global Shopping Festival in just a few weeks.
Watch the video to see how the brands are preparing for 11.11.
More than 100 small and medium-sized U.S. brands applied for the chance to join the Go Global 11.11 Pitch Fest for an opportunity to break into the China market and participate in Alibaba’s 11.11 Global Shopping Festival. The winners are gearing up to sell to Chinese consumers looking for new, specialized brands at the 11.11 Global Shopping Festival in just a few weeks.
Watch the video to see how the brands are preparing for 11.11.
For more than two decades, Alibaba has worked with American small businesses, farmers, and major brands to sell everything from agricultural products to cosmetics and fashion to markets around the globe. During the pandemic, we believe it is even more critical for U.S. businesses to sell their products online and abroad.
The American public agrees.
Last month, Echelon Insights surveyed 1,000 likely voters from August 14-August 18, 2020. 80% of respondents agreed that having access to customers worldwide is essential for businesses to recover from the COVID-19 pandemic. Also, 77% of respondents agreed that small and medium-sized businesses need access to digital tools, diversified supply chains, and customers around the world to compete and grow.
Alibaba’s Go Global 11.11 Pitch Fest, launched earlier this month, is an example of our recent efforts to help U.S. small businesses expand globally. The nine winning brands will now begin setting up storefronts on Tmall Global and are slated to participate in Alibaba’s 11.11 Global Shopping Festival.
During September, Alibaba also helped U.S. designers gain exposure and brand recognition among China’s fashion customers. For the first time, we streamed New York Fashion Week across our digital entertainment platforms and e-commerce sites, enabling U.S. designers to reach an audience of 900 million consumers. We were also thrilled to welcome iconic American designer Marc Jacobs to our Tmall Luxury Platform.
In an uncertain time, Alibaba remains committed to helping American businesses reach global markets while satisfying the strong consumer demand for U.S. products. Since April 2020, we launched 170 U.S. brands on our cross-border platform Tmall Global, adding to the thousands of U.S. brands already selling on our marketplaces. We have continued to invest in building our digital capabilities, offering new and innovative tools and strategies to help American brands generate sales, engage with customers, rebuild their businesses and recover.
Our work to help brands and small businesses through this challenging time was recognized by three important awards this month. Fortune named Alibaba the #2 company that is changing the world, just behind a group of the world’s vaccine makers. The World Retail Congress named Alibaba Retailer of the Year along with Walmart. And the American Apparel and Footwear Association (AAFA) named Alibaba Retail Innovator of the Year.
Covid-19 has accelerated the need for companies to digitize and look to new markets for continued growth. We are grateful for the chance to work with so many U.S. businesses to do just that.
Sincerely,
Michael Evans, President and Director, Alibaba Group
Nine U.S. Small and Medium-Sized Businesses Selected to Participate in Alibaba’s 11.11 Global Shopping Festival
Nearly 100 small and medium-sized U.S. brands applied to participate in Alibaba’s first-ever Go Global Pitch Fest. The winning brands are being fast-tracked to participate in the 11.11 Global Shopping Festival through Tmall Global's Overseas Fulfillment program, which offers greater inventory flexibility and reduces operational and logistics costs.
It has been estimated that a quarter of every dollar, on average, that a U.S. farmer or rancher earns from the farm is due to exports. It may even be higher for some growers.
Our farmers are highly productive. With utmost respect to farmers everywhere, because I know that a strong work ethic abides in all farmers’ hearts, I don’t think anyone can out-produce the American farmer. We’re proud of that, and we’re proud of being what we’ve sometimes called “the breadbasket of the world.”
With so much of our economic sustainability and pride riding on global markets, U.S. farmers are always looking to expand our access to those markets.
Within the past couple of years, the United States has signed trade agreements with Canada, Mexico, Japan and China. Now, our government’s trade negotiators are working on a deal with India. Several other countries in the region, such as Vietnam, Malaysia and Indonesia, are of great interest as growing markets.
Trade deals are one way to grow our access to global markets. Another is through technology, and it’s so exciting to see farmers and consumers from around the globe connecting via online services to create, in effect, a global farmers’ market. It’s amazing to think that a farmer can sell directly to customers, through digital platforms like Alibaba’s, both in their local communities and a continent away, something that was practically unheard of when I was a boy working on my family’s dairy farm.
We need greater understanding and appreciation of global trade, so that it can continue to grow. It is vital that the public understands how access to global markets brings the best of the world to our doors and the best of U.S. agriculture to hungry consumers around the world.
Access to global markets is a win-win!
Alibaba’s business ecosystem helps create jobs, grow local economies and support industries in states across the country. On our website, you can learn how companies in your state are benefiting from their partnership with Alibaba. Each month our newsletter will highlight how brands in an individual state work with Alibaba to access global markets. Today we focus on the Empire State.
Opportunities for New York Businesses
Over one hundred New York-based businesses have partnered with Alibaba to access Chinese and global markets and expand their customer base abroad. From big brand names like Coach and Estée Lauder to small businesses like Evereden, a growing number of New York-based companies are utilizing Alibaba’s e-commerce platforms to grow their business.
Kimberley Ho, founder and CEO of New York-based family skincare company Evereden, launched on Tmall Global in November 2018. In the first month, sales exceeded Ho’s expectations after the conversion rate, or frequency with which visitors to the site actually purchase a product, reached 15% to 20%.
In addition to helping U.S. businesses like Evereden grow, Alibaba’s business ecosystem helps create job opportunities and supports industries across the state, boosting the New York state economy.
Learn about other successful American businesses’ partnership with Alibaba in your state.
Last month Alibaba.com hosted its second U.S. Online Trade Show showcasing American food and beverage manufacturers, wholesalers and brands to buyers from around the world. The event featured nearly 40 exhibitors from around the country livestreaming to a global audience of over 1 million business buyers.
Before the pandemic, many of these companies made their most important sales connections through in-person trade shows. By bringing these events online, exhibitors like Elmhurst 1925, a leading nut milk manufacturer based in Elma, NY, showcased their products and met potential business buyers. Event attendees appreciated discovering new, innovative companies all in one experience, and since the show, Elmhurst’s team and many other exhibitors have fielded multiple inquiries from buyers.
Alibaba.com U.S. Online Trade Shows are real-time, interactive, curated experiences designed to help buyers and sellers meet online. Join upcoming shows.
Other Events
Oct. 14: NRF Retail Leadership Live Series with Michael Evans
From Washington State to China: How Domex Superfresh Growers Sell their Cherries to Customers Globally
Watch more success stories about the many other American businesses like Domex Superfresh that are partnering with Alibaba to grow globally.
From Washington State to China: How Domex Superfresh Growers Sell Their Local-Grown Cherries to Customers Globally
Watch more success stories about the many other American businesses like Domex Superfresh that are partnering with Alibaba to grow globally.
Alibaba’s mission is “to make it easy to do business anywhere,” and that’s what this newsletter is about. Each edition of this newsletter provides a window into how U.S. businesses are accessing nearly one billion consumers in China and other overseas markets through our digital platforms. By connecting American companies with new consumers and businesses abroad, we help them drive increased global sales, grow communities, create jobs and support dozens of U.S. industries and sectors.
Last year, thousands of U.S. entrepreneurs, farmers, brands, and small and mid-size businesses (SMBs) sold over $40 billion worth of goods to Chinese consumers through our online platforms. And Alibaba.com, our B2B platform, empowers U.S. businesses to sell high-quality goods to 10 million other business enterprises around the world.
Throughout the pandemic, Alibaba has continued to invest in building our digital capabilities, offering new and innovative tools and strategies to help American brands generate sales, engage with customers, rebuild their businesses and recover.
As an example, we recently announced our first “Go Global 11.11 Pitch Fest.” We are inviting U.S small and medium-sized brands to register to pitch for the opportunity to sell their products during our 11.11 Global Shopping Festival, which is the world’s biggest online shopping event. Similarly, to provide help to U.S. B2B businesses during the pandemic, we are organizing Alibaba.com Online Trade Shows USA, a series of multi-day, online events that provide U.S. sellers the opportunity to connect with buyers globally.
As tough as 2020 has been for global business, there is a big opportunity for American companies to digitize their businesses, go global, and sell their products to new markets. There is also the opportunity for U.S. small businesses to tap into the nearly $24 trillion global B2B e-commerce market through our platforms. Many already are, and we’re pleased to be able to share some of their success stories with you. For companies who aren’t, we stand ready to help you understand if our online platforms can help you.
Sincerely,
Michael Evans, President and Director, Alibaba Group
Radha Beauty works with Alibaba to expand its reach globally and create quality jobs in Aurora, Ohio, where the company is based. In this video, Radha's CEO Christopher Longo shares how Alibaba helps his company thrive overseas during the pandemic.
Many more American businesses like Radha Beauty are tapping into Alibaba to grow globally. Watch more success stories.
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Radha Beauty works with Alibaba to expand its reach globally and create quality jobs in Aurora, Ohio, where the company is based. In this video, Radha's CEO Christopher Longo shares how Alibaba helps his company thrive overseas during the pandemic.
Many more American businesses like Radha Beauty are tapping into Alibaba to grow globally. Watch more success stories.
The global B2B ecommerce market is estimated to be six times the size of the global business-to-consumer (B2C) ecommerce market. Alibaba.com is a comprehensive, end-to-end ecommerce platform built for B2B success. Last July, we opened the platform for U.S. sellers to connect with our 10 million active business buyers, and the U.S. has been the fastest growing source of suppliers since.
This year has been a particularly challenging one for businesses, and throughout this crisis, we have continued to invest in our platform – offering new features to help U.S. SMBs find customers and generate sales so they can pivot and persevere through these difficult times. Learn about Alibaba's new tools to help SMBs reach global consumers.
As with the economy as a whole, the Covid-19 pandemic has presented new tests for the retail industry. Reaching customers with a digital strategy powered by e-commerce platforms took on new urgency as many consumers shifted from in-person to online purchasing. At the same time, it is important that businesses do not lose sight of opportunities to reach even wider audiences by expanding global sales.
International e-commerce companies make it possible for retailers to take their business operations global and tap into demand for their products in other countries, especially in Asia. The growing demand from Chinese consumers is tremendous, and it’s important to have e-commerce platforms that lower traditional barriers that prevent companies from accessing the global marketplace, particularly with payments, logistics and marketing. These platforms make it easier for our businesses to sell abroad, compete more efficiently in the global economy and hopefully break their own sales records in the process.
Alibaba is no stranger to this space. In October, on the NRF virtual program the “Retail Leadership Series,” I’m excited to host Michael Evans, President of Alibaba. We’ll be talking about the challenges and opportunities facing retailers today, and specifically how the Alibaba Group’s Tmall and Alibaba.com have created pathways for American retailers to reach consumers in Asia and other parts of the world. Learn more about this virtual event and register here.
Steve Clemons, The Hill’s editor-at-large, convened a discussion on how exports still matter, how the rising middle class around the world is a vital market for American goods and services providers and how during a pandemic, new tech platforms are giving these enterprises a leg up into new global market opportunities. Speakers included Rick Larsen (D-WA); Carlos Gutierrez, former U.S. Secretary of Commerce, Michael Evans, President, Alibaba Group; Karen Horan, Global Business Development, National Confectioners Association; and Josh Ghaim, Co-Founder, Ignite Venture Studio. View the panel session recap.
The “Go Global 11.11 Pitch Fest” is a virtual event designed to help more U.S. brands expand their businesses globally. The event will provide an opportunity for selected U.S. small- and medium-sized businesses to test the market in China and participate in Alibaba’s 2020 11.11 Global Shopping Festival, the biggest shopping festival in the world with $38.4 billion of gross merchandise value in 24 hours last year. Learn more about the Pitch Fest and how SMBs can enter.
It’s no secret that direct-to-consumer (or DTC) brands have been at the forefront of changing the way consumers shop. So it’s no surprise that many of them not only survived the pandemic, but actually thrived. With agile business models and digital strategies, they were well positioned to navigate a world of closed brick-and-mortar retail.
This was the theme of the “New Frontier for Growth" session at the 2021 Retail Innovation Summit hosted by the Wharton School’s Baker Retailing Center and XRC Labs.
Moderated by Barbara Kahn, Professor of Marketing at the Wharton School, the panel featured Travis Boyce, Head of Global Retail Operations at sustainable footwear brand Allbirds and Coral Chung, Founder and CEO of luxury leather handbag company Senreve. Joining them was Tony Shan, Head of Alibaba’s Tmall Global for the Americas.
Like most DTC brands, Allbirds and Senreve have resisted selling on well-known e-commerce sites. Yet both chose to access the China consumer market with Alibaba’s B2C platforms Tmall and Tmall Global. The reason comes down to what Alibaba’s Shan noted: “We are a marketplace, not a retailer. We only do well if brands do well.” The best way to think of Tmall and Tmall Global, Shan said, is a digital mall where consumers can “go” to engage with brands directly.
Chung of Senreve noted that Tmall Global provides exactly the kind of consumer she is looking for – those looking for premium and luxury products, in contrast to those looking for mass-market items on online shopping platforms in the West.
Through Tmall Global, Senreve was also able to access consumer demographics and analytics, which allowed her to learn more about Senreve’s consumers in China and to do product localization. Chung learned her average Chinese customer is 10 years younger than her US counterpart. And since customer engagement and satisfaction is very important in the China market, Senreve found the ratings and reviews particularly useful, prompting her to upgrade her brand’s packaging.
“Having data is important for DTC decision making,” said Shan of Tmall Global. “We share sales info, traffic, CRM management system and macro trends for brands who have flagship stores on our platforms.” Chung said that being able to have that data as well as transparency on competitive benchmarking has been useful for growing her brand.
For Allbirds, the journey to China began when they noticed strong upticks of Chinese consumers looking at their website, as well as Chinese tourists buying significant amounts of product from their brick-and-mortar stores to bring home to their families. Realizing that there was a demand for sustainable yet stylish and comfortable shoes on the other side of the world, they moved to enter the China market right away.
Boyce noted that not only did they invest in physical retail and establish four owned-and-operated stores, they also partnered with Tmall to help build its visibility, engage with consumers and amplify its storytelling around its brand’s mission of sustainability.
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