Tmall — the ally of Farferch to enter Mainland China market
The potential customer and growth is a big cake for any business that they can’t ignore. Farfetch, the famous global luxury online shopping website, is also interested in the market. Despite potential profit, also the submarket blank.
A brand-new battlefield
However, due to policy-relevant reasons and Alibaba, the largest Chinese existing eCommerce giant. Farfetch’s new march may not smooth as they achieved in other regions. But the most important thing is, a foreign company doesn’t familiar with the Chinese market and customers, including their consumption habits, preferences and location distribution(even come companies will investigate but sometimes it’s antiquated). Here is one concrete example, unlike customers in other regions, Chinese people more prefer mobile payment methods like Alibaba’s Alipay and Tencent’s WeChat Pay rather than the credit card system, no matter it is online or offline purchasing. Just because the mobile payment system is well-developed in Mainland China.
Cooperation brings success
Thus, collaboration is the most efficient way for Farfetch and the partner naturally is Tmall, China’s largest retail shopping website, holding by Alibaba. Especially after the investment from Alibaba to Richemont, all things are reasonable.
In the website and the app of Tmall, there are several subbrands for different categories, such as Tmall International, for the cross border eCommerce, Tmall Luxury, for Luxury sales. Alibaba also announced that Farfetch will set up shopping channels on Tmall Luxury and Luxury Soho last November. Now, 4 months later, On March 1 of 2021, the fashion e-tailer officially launched its store on Tmall.
Localization attempt
Not only subpage on Tmall Luxury, but Farfetch also designed its app a different version for Chinese customers to make sure their purchasing process smoother. For instance, the payment method changed, although there are several methods such as Alipay, credit card and international credit card, the first choice became Alipay, besides it is one of the most popular ways to pay in Mainland China, the collaboration between Farfetch and Alibaba is also crucial. Therefore, WeChat Pay, the competitor of Alipay, didn’t show in the payment list.
Combination of technology and marketing
Cutting-edge techs are also applied in marketing. Farfetch’s official store on Tmall offers browser AR try-on options, and a 3D store shows them a real store on their screen. Using Html 5 to give the customer an experience just like they are really in a real store is what Farferch and its partner’s innovation in China.
It is worth mentioning that Alipay gives customers an option, three installments without interest if they choose Huabei(a consumer credit product that can be used when paying with Alipay) to pay. That suits a part of the young generation’s consumption habits.
“Knowledge precedes victory; confusion precedes defeat.” — Sun Tzu
Above all, the Chinese market becoming more and more popular for those overseas enterprises who want to international business. But to enter a brand-new market is difficult when they don’t familiar with the country/region. Challenges are from several parts, including policy, culture, religion, customer consumptions and habits, even some details of the area. To find a local agency that is familiar with the local situation even cooperate with local giants are efficient ways. Also for large multinational companies, they have one more option, mergers and acquisitions. Be prepared for the new challenge, then you’ll be fearless for any new situation.
