So far, the venture is going well. 1,500 fans reposted the news Burberry sold a 5,000 RMB purse within a few hours of opening.
Tmall accounts for 45% of China’s online business-to-consumer retail sales, making the platform impossible to ignore. There are 70,000 brands and 50,000 third-party merchants on Tmall, but many prestige brands have avoided the site due to gray market retailers and competition for lower prices.
Tmall stores are highly customizable, allowing brands to offer live chats with Beauty experts, how-to videos and user reviews. Customers often become fans of brands to receive real-time promotional content, which can in turn lead them to buy directly from the brand. Despite its shortcomings, Tmall is one of the best marketplaces available to foreign brands in China. At the very least, it provides direct access to 500 million users, an audience Burberry has decided to tap.