DLG (Digital Luxury Group) hat dies direkt geteilt
Perspective on how luxury brands should integrate Tmall in their China strategy: Tmall’s chairman recently said: “Our User First approach will prioritize user experience in business strategy and product design to drive retention and repeat purchases.” This intense focus on transactions, combined with the promotions that took place during June’s 618 festival may give luxury brands pause, as to whether a presence on Tmall still makes sense in the context of the brand elevation strategy many of them are pursuing. Far from dismissing Tmall, luxury brands should recognize and continue to leverage its multifaceted value for the following strategic reasons: 1. Brand Building: Tmall offers an unparalleled opportunity to shape brand perception and desirability among Chinese consumers, both online and offline. Luxury brands must recognize that 80% of their offline customers consult Tmall as part of their decision journey, making it a critical touchpoint for building brand equity. 2. Omnichannel Integration: Tmall's influence extends far beyond just driving online sales. In luxury, e-commerce often accounts for less than 10% of total China revenue. However, a strong Tmall presence can significantly impact offline desirability, when brands effectively leverage digital assets to present a cohesive brand experience. 3. Customer Acquisition: As the largest and most profitable e-commerce channel in China, Tmall is unmatched for acquiring new Chinese customers, both online and offline, inside AND outside China. While platforms like Douyin may offer reach, Tmall's remains bigger and its profitability is often 2-3 times higher, making it a far more strategic and sustainable long-term investment. 4. Controlling the Experience: Despite Tmall's growing focus on low prices, luxury brands maintain full control over their branded storefronts and prices, presenting an opportunity to showcase their brand universe authentically and to incorporate rich brand assets and storytelling – an area where many still have room for improvement. 5. Combating the Gray Market: A Tmall presence also allows luxury brands to provide an official and trustworthy alternative to parallel market vendors. Brands that fail to establish a strong Tmall presence risk ceding control to unauthorized third-party sellers. Luxury brands should avoid making the mistake to dismiss Tmall, and should instead adopt a strategic, data-driven approach to optimizing their presence and unlocking Tmall's full value. For almost two years already, DLG (Digital Luxury Group)’s Digital Acceleration Program has helped luxury brands, across all key categories, to optimize their digital operations in China, in order to elevate their brands, maximize their ROI, and accelerate their revenue. Getting it right has allowed our clients to increase their impact with Chinese customers online and offline, inside and outside China. Please reach out to Iris Chan (陳淙韵), Pablo Mauron or me, if you’d like to know more.