After the grand opening of Correos cross-border shop on Tmall global in June, our team did a purchase and tested the shopping experience. Here, we will share what is it like to purchase in Correos cross-border shop:
First of all, the brands sold in Correos shop are mainly famous local Spanish brands and have not registered in China yet. Therefore, these brands joined together and sell to Chinese customers in this novel model.
After searching in this shop for a while, we decided to purchase a box of olive oil as Spanish olive oil is known with high quality and good taste.
Then, we started chatting with the customer service to ask for more details of this product. The shop sales replied us immediately. He told us the Correos cross-border shop has a local office in Hangzhou, China, however, all the products are in Spain and will be shipped directly from Spain to China. He also told us that lead time is within 3 days and the delivery time is around 7-14 days depending on various factors such as weather, traffic etc.
After all, we still decided to purchase this product and decided to pay and check out. There is personal cross-border purchase quota. We advise you to check it in here http://ceb2pub.chinaport.gov.cn/limit/outIndex before you make any purchases. Then, the buyer required us to submit a scanned copy of our ID, which will be used in the customs to clear the goods at the border.
Due to the long shipping distance, the shop does not take return merchandise. For testing, we finished payment and received a tracking number, which we can use to track our package online. For our order, we found out that the lead time is 2 days. After more than one week’s waiting, we finally received our olive oil 10 days after departure. Compared to our previous shopping experience on Tmall domestic, it feels slow but still within the time range they promised.
Unfortunately, our products exterior package is a little bit deformed probably due to the cushion put inside the package box is not enough. We sent a complaint to the customer service of Correos cross-border shop immediately.They were also sorry for this and decided to compensate 20 RMB to us.
In general, we have a very satisfying purchase experience on Correos shop on Tmall global except for the relatively long waiting time.
Recently, Spanish post office Correo launched its oversea flag shop on Tmall global(an online B2C platform under China Alibaba Group) and started the trial operation. All the products sold in this flag shop come from major local brands in Spain and will be directly sent from the Spanish local brands’ warehouse to China.
Last year, Alibaba’s Cainiao network announced the strategic collaboration with the Spanish post office Correos which significantly push forward the cross-border business and logistics services. After the flag shop is established, the delivery will be very convenient and fast. A staff working in Correos said “All the brands shown up in our flag shop are selected through deliberate consideration.” Since Correos has major advantage of its domestic logistics service in Spain, it only takes 7 to 14 days for Correos to deliver the products from the warehouse, transfer them to EMS and finally arrive at buyers’ designated address. Buyers can track the information on both Correos and EMS websites.
The brands in the Correos flag shop include:
- Oleocampo: a high-end olive oil made in Spain
- Colnatur: a protein powder brand with protein powder products suitable for both sports fitness people and middle aged people.
- ART: a Spanish fast fashion shoe brand
- Neosens: one of the high-end shoe brand from La Rioja, Spain
- Marques de Grinon: one of the high end Spanish wine brand
- Correos: main products are stamps and commemorative coin collection
However, Correos is not the first foreign country’s postal service company that launches Tmall global shop. UK’s Royal Mail, Australia Post and Northern Europe’s Post Nord have already had their Tmall global shop online.
It is said that whoever hits first, hits twice. Some days ago, Zalando signed a partnership with its biggest competitors, Amazon and Alibaba. Far from thinking that they were wrong, we feel confident about the future of these new alliances between Europe, China and United States.
Zalando was founded in Berlin (Germany) in 2008. Born as an European electronic commerce company, the brand already holds the leadership as the largest online fashion retailer, while also has become the second largest group in Ecommerce in European region.
Although originally its activity was focused in marketplaces, in 2010 Zalando starts its jump into developing and selling its own brands. Online selling shoes, clothes and fashion items constitute the core of the company, under a cross-platform perspective.
A step to break: boundaries to online shopping
Even if such perspective still remains today, observers enjoy its dramatic effects: to an unique Refund – Return policy in retail and a highly attractive shipping, have joined an effective logistic management and a recent prospection in offline context.
Although timidly, its development in the offline environment constitutes a new movement to establish its brand in the retail market and its visibility on some physical multibrand markets in Germany. To this point is joined an attractive shipping policy that enhances its appeal to the consumer: it is fast, secure and in case the users feel dissatisfied with their purchase, they have the chance to return them within 90 days.
Even if its payment and reimbursed model is constantly criticized for its high risk, it is also truth that this pillar has become an emblem for Zalando, its trademark and distinction over its competitors.
Zalando pushes online to grow
The company shows a steady growth in its presence in Europe, while designing its jump to the international area. The future seems promising according to their latest analysis prospects, with a year revenue growth close to 20%.
This rise is the result of three main reasons:
- Its total adaptation to mobile user experience: U-commerce is the new king in sales –check our articles “How to Take Advantage of the Latest E-commerce Revolution? U-commerce Trend” and “5 Things to Avoid When Doing Business in China” to discover a bit more!–
- Mobile purchases are already more than half of its sales
- A wide range of products and therefore, a great audience to address
- Its advantage of using a vast network of online platforms
A twist to Ecommerce
The desire of the Group is boosting its international sales and take advantage of the huge possibilities that the electronic market and their highly developed logistics presents to them.
To achieve its goals, Zalando has woven alliances with the giants of E-commerce: Amazon and Alibaba. Although its presence on Tmall is expected for the coming months, its bet for B2C trade -previously discussed by us in our article “Do Other Ecommerce Platforms Stand a Chance Against Tmall?”- some steps further on international distribution are already in discussion.
It is worth noticing that this giant enterprises are transforming traditional business into a new business model. Digital Marketing and Ecommerce helps to create new partnership systems for other companies around the World, and it will become more and more important in the following years.
In search of a Digital and Ecommerce Company? If you have any question or require any information about our services,
Some months ago, we identified some Insights on ZARA in the Chinese digital market that came to underline its first steps on Chinese Ecommerce and the main reasons which led the company to choose Tmall as its official flagship store.
Zara´s stay in China began ten years ago and would not be long before the Management decided to set up its own online shopping website The Zara China and publish an M-shop called Zara.
What has been the result of the policy undertaken in recent years?
The unstoppable rise of Zara
After its landing in Shanghai, Zara currently counts with 182 stores in China. The brand is undergoing a process of rapid expansion, but gradual: after settling in major cities, continues to expand its business model in medium-sized cities –Second and Third Tier cities-.
The expansion of Zara in China occurs while increasing its international presence; the company is already present in 90 countries with a network of 2.170 stores…and there are still much more worlds to conquer.
In a curious twist of fate, while Zara undertakes an ambitious international growth -focused on Asia-, some others Chinese counterparts are the ones which starts their landing in Europe. It is especially noteworthy the case of Chinese Mulaya. Born in a spirit reminiscent of Zara, it advances rapidly in the West as a flagship Chinese in women’s clothing.
Ten years to become one of the 10 most recognized brands by Generations Y & Z
It would be this August when the Chinese RTG Consulting launched its latest study 2016 RTG Brand Relevance Report. The Report comes to underline the relevance that some brands reach between so-called Generation Y and Generation Z in China, their consumer behavior and lifestyles.
Surrounded by Chinese –Xiaomi, AliPay, Wechat, Taobao- and some others well-known international brands –Apple, Adidas, Nike, Uniqlo, H&M, Converse, New Balance-, Zara has entered into the Top 10, after becoming the sixth Most Recognized brand in China for the generation under 36 years.
But results are better for the Spanish company when we dive into Clothing brands. If we look at the survey results, we find that young Chinese place Zara as the second most-recognized brand in their industry, just behind Adidas.
China is already the second most important market thanks to ECOMMERCE
Its huge success in China is due to the combination of three main factors we describe below more in detailed:
- Zara offers a constant renewal and an affordable luxury as concept.
- Zara decided to start playing at the Chinese ecommerce scene by the hand of Tmall.com, instead of trying to build its own infrastructure to cover the entire Chinese market.
- Its Electronic commerce policy not only supports the growth of its own Digital industry, but also the Company growth as a whole: it has become a safe way to promote the brand in places where physical presence does not yet exist.
After going through critical situations in its implementation process in China, the company has adapted to the specific conditions of the market to which it is addressed. Zara not only has understood that nowadays, any approach to the Chinese territory must have a policy consistent with the preferences of the target population and be brave and fast to react to local consumer tastes, but also that Ecommerce has become the board in which the battle occurs, an step into future and the key that makes the difference.
All we can we do for you
Inevitably, the present is already future and both are settle on the virtual world. Knowing the ins and outs of the digital industry, take advantage of Ecommerce for the growth of our business and not give up a proactive marketing policy are the keys for successful development in the country.
In the company, we have the experience of an expert team. We are used to deal with the constraints of the Chinese market and we seize opportunities.
Let us team together. Visit us in 2 Open.
E-commerce in China is growing so rapidly and it appears to have big rewards for those who manage to thrive in the market. Problems for companies who want to enter China arise due to limited knowledge about the Chinese market and the variety of e-commerce platforms, but how exactly should you start your e-commerce business in China? Where should you start?
Indeed, there are countless B2C (Business-to-customer) e-commerce platforms in China, Tmall/Taobao are in the leading position, followed by JD, then VIP.com, Suning, Gome, Dangdang, YHD, Amazon China, and so on. Usually each platform has a deposit, some annual fees, and commissions. If your are starting your e-commerce business opening a Tmall/Taobao shop first would be a smart move from your part, later, when your business grows, you could extent and broaden your sales channels. You might be wondering, Why Tmall/Taobao? Why here and not in other platforms?
Firstly, let us look at this from an investor’s point of view, minimizing initial investment. For a Tmall shop different products and shop types have different deposit amounts that range from 50,000 RMB to 150,000 RMB. The annual service fees are 30,000 RMB or 60,000 RMB depending on the category, they may be half or totally refunded if the business is good enough to reach certain revenue. As for the commissions, different categories also have different commission rates, commissions in Tmall start from 0.5% to 5%, this is quite competitive since other usually range from 10% to 15%. After all, Tmall is mainly an open platform for all vendors.
Some small companies or cautious companies should consider starting with a Taobao shop. Taobao is supposed to be a C2C platform, since its requirements, compared to the ones of Tmall, are considerably lower, some small companies opt to start with a Taobao shop first. Why is this option so appealing to small companies? There are two types of Taobao shops to choose from, the first one is owned by a person and the second one is owned by a company. The personal Taobao shop can be upgraded into a company account if the owner is the legal representative or a shareholder. The best thing about Taobao is that it is free, you only need 1000 RMB as the deposit and Taobao has no annual fees or commissions. For those who are really cautious or lack resources, this might turn out to be a wise choice.
Secondly, let us analyse the human resource factor. You might have agencies working for you or maybe a few employees; however, trying to start with all channels at once may not always be the best option for your business. To successfully manage an e-commerce shop it takes dedication and time, even though opening a shop is not a difficult task, managing that shop is. Analyse, optimize traffic and content, and increase sales is something that requires time and focus. The target is to turn those open channels into productive channels, it is worth mentioning that most of these e-commerce platforms are similar or even copy Tmall/Taobao, so getting familiar with platforms is kind of like getting familiar with the e-commerce industry in China.
How is the e-commerce environment looking in China? Tmall/Taobao have been leading the free traffic in China for years, each day there are more than 40 million visitors on Taobao. Even Suning, Dangdang, YHD and Amazon China now opening their shops on Tmall.
As for the payment side, Taobao/Tmall have their own payment method, Alipay. With more than 0.3 billion registered users, 0.27 billion active users, and links to over 180 banks both in China and other countries, Alipay is the largest third party online payment platform in China, some active users even use Alipay to pay for their home power, gas and water fees. It makes it easier for consumers to pay.
Finally, let us discuss product control. Since Tmall/Taobao are mainly open platforms, vendors have almost fully control of their products. You can categorize the type of product your selling, upload or remove it anytime you want and also have full control of the price and logistics company you want to use to deliver your products.
So if you are planning on entering the Chinses market through e-commerce you might want to start with a Tmall or Taobao shop first. Here at 2Open we specialize in digital marketing and e-commerce, our goal is to understand our clients business needs, in order to provide the best possible services. If you have any questions or require any information about our services, please do not hesitate in contacting us, our group of specialists will happily assist you.
This article was edited by Andres Arroyo Olson from 2Open.