China’s Gen Z Drives Imported Consumer Goods Demand

by Ruth Seeley

With China’s Gen Z—those born after 2000—driving demand for pet products, beauty devices, and a whole host of other consumer goods, Alibaba Group’s Tmall platform has created two initiatives to help businesses enter the China market without establishing a physical presence. The number one import e-commerce or cross-border platform in China based on transaction value in 2018, Tmall Global saw sales of its pet products in China double in 2018, while sales of beauty devices quadrupled.

The initiatives – the Centralized Import Procurement (CIP) and Tmall Overseas Fulfillment (TOF) – are import solutions offered by Tmall Global to help international brands accelerate their entry into China and capitalize on demand for high-quality products. Alibaba hopes to export $200 billion worth of international goods to China over the next five years, and is using digital media channels to speak directly to Chinese consumers, as well as working with influencers and opinion leaders.

“These new initiatives on Tmall Global, supported by the entire Alibaba ecosystem and benefiting both current and future partners, are needed enhancements as we strive to meet the rising demand of Chinese consumers for high-quality international products,” said Alvin Liu, General Manager of Tmall Import-Export, at the Tmall Global 2019 Global Partners Summit.

Alibaba unveiled the CIP program today as a key part of Alibaba’s new retail business. By leveraging the six procurement centers Alibaba has set up across the globe, the program sources imported goods for all the online and offline outlets within the Alibaba ecosystem, including technology-driven grocery chain Freshippo (also known as “Hema” in Chinese), Tmall Supermarket and Intime Department Store. The program is a quick and low-risk way for international brands to enter China, allowing them to reach the nearly 700 million active users on Alibaba platforms.

Alibaba’s smart logistics network, Cainiao, will continue to expand its network of bonded warehouses in China. The company hopes to triple its total size to three million square meters within three years.

Source: Tmall Global

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