Alibaba's B2C e-commerce site Tmall is cooperating with international retailers to bring imported goods to Chinese consumers, who are increasingly demanding a wider range of high quality and safe products. It enables the international retailers to tap into the booming Chinese market with limited investment.
Tmall's International section was launched in October 2014, and by the end of the year, as many as 5,400 international brands from 25 countries and regions have opened their official stores at Tmall. Alibaba announced that the retailers who have agreed a partnership with Tmall include Costco from the US, Countdown from New Zealand, Lottemart from South Korea and RT-Mart from Taiwan.
Costco, which opened a flagship store on Tmall last year, plans to launch tailor-made products for Chinese consumers. Clearly, this is an attractive route to growth for retailers like Costco, giving instant access to new customers. We'd expect more retailers, and particularly those with iconic private labels, to look to use marketplaces in this way in the future, as for example, Swiss retailer Migros has done with Amazon in Germany.
The pricing of these products on Tmall is intended to be consistent with the global outlets of these retailers. To achieve that, Alibaba has been stepping up efforts on simplifying and speeding up customs clearance procedure and delivery process, through working with customs authorities in Shanghai, Guangzhou, Zhengzhou, Hangzhou and Ningbo. The retailer has also been promoting the imported products online and offline to attract more shoppers.
Source - IGD Retail Analysis - http://retailanalysis.igd.com/Hub.aspx?id=23&tid=3&nid=13873