Jung Saem Mool, a Korean cosmetics company well-known for its BB cushion, who joined Tmall Global as a Tmall Overseas Fulfillment (TOF) merchant in April 2019, has a good story of the transformative potential of the platform. It gained significant brand recognition among Chinese consumers after adopting the TOF model, and has expanded its collaboration with Tmall Global with the launch of its own flagship store on the platform in July 2020, signifying its official market entry into China. The brand recorded a 50-fold GMV increase year-on-year during this year’s 618 Mid-year Shopping Festival.
TOF is a cooperative model launched by Tmall Global with the aim to incubate overseas brands. Brands send a small amount of products to TOF for pilot sale on Tmall Global, as a way of testing the market response before deciding to open a flagship store on the platform.
Another story revolves around the rise in demand for Japanese-made cosmetic contact lenses, which saw a significant uptick in sales during 618. By June 16, the total GMV of 26 Japanese brands selling cosmetic contact lenses under the TOF model grew by 345% year-on-year.
Shop the world from home
Although COVID-19 has put restrictions on travel and therefore the ability to shop abroad, demand among Chinese consumers for imported goods has remained high. TOF is central to building a global supply chain network to meet this demand, which now includes four overseas warehouses in the US, Europe, Japan and Korea, as well as one in Hong Kong SAR.
TOF is bringing the international shopping experience home to Chinese consumers. During this year’s 618, some 1,600 overseas brands sold over 100,000 different types products to domestic shoppers using TOF, representing a 10-fold year-on-year increase in gross merchandise value (GMV) across the warehouses in Korea and Europe. Sales of imported products on Tmall Global grew 43% year-on-year, with transactions via TOF increasing 199%.
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