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Tmall to Launch Flagship Store 2.0 Upgrade Program

  •   1 Aug 2019
  •    Hedy He
  •  426
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    Takehome:
    • Tmall will upgrade its flagship stores before Nov. 11th, 2019. The new stores will leverage technological advancements including 5G, big data, AI and AR to offer consumers an immersive retail experience that adapts to individual changes in consumer preference over time and seamlessly combines online and offline retail.
    • High-end cosmetics have an increasingly prominent presence on Tmall. Over 26% of the world’s largest luxury brands are already operating flagship stores.
    • Stakeholders can expect flagship stores with an individualized user interfaces/store landing pages, optimized algorithms, and greater options for customization than ever before.
    Key Terms:
    Tmall: The world’s second biggest platform for local Chinese and international businesses to sell brand name goods to consumers in mainland China, Hong Kong, Macau and Taiwan [1].

    New Retail: Retail as a service that integrates online and offline elements , streamlines supply chains and allows both consumers and retailers to use advanced technologies such as big data, AI, AR and advancements in understanding of consumer psychology to improve production, distribution, logistics, marketing and sales [2].


    Earlier ChemLinked reported that Tmall launched its English language website [3], which helps international brands understand Tmall’s business offering and facilitates opening of Tmall flagship stores. Following this, on June 25, 2019, Tmall unveiled its Flagship Store 2.0 Upgrade Program, which will help merchants optimize digital management of their stores, and offer more flexibility and improve responsiveness and adaptability to shifting market dynamics and rapidly evolving consumer demands through the use of new retail and other innovative retail solutions. The Tmall Flagship store 2.0 will offer an unprecedented level of customization for retailers and unprecedented ability to integrate new retail tech such as big data, 5G, AI, AR etc. The new offering should be ready for the 2019 Double 11 Shopping Festival.

    Source: Internet

    From “Merchandise-centric Operation” to “Consumer-centric Operation”

    According to iebrun [4], the 2.0 version of Tmall flagship store will be fully upgraded based on consumer data and will include an optimized page display and new online and offline experiences for consumers.

    1. A redesigned algorithm: Page content individualized based on consumer preference, history, big data etc.

    The display page (landing page) of the flagship store will be individualized based on user search history etc. and will offer a digitally curated selection of products and features which highlights or prioritizes based on each consumer’s preference.

    2. Integrate online service and offline experience

    Consumers entering Tmall flagship stores will be able to see both online and offline offerings and take part in both online and offline activities through each flagship store. For merchants, the integration of online and offline services will attract consumers to offline stores and vice versa.

    3. Leveraging the latest technological advancements

    The 5G era is coming and will revolutionize the retail experience and is obviously a heavy focus of the Flagship Store 2.0 Upgrade Program. The improvements in speed and decreased latency offered by 5G will for example allow consumers purchasing lipstick online to use AR and virtually try out new lipsticks and eye shadow in real time using the Tmall AR virtual makeup plug-in.

    Source: Internet

    High-end Cosmetics Brands Featuring Strongly on Tmall Flagship Stores

    CHANEL's cosmetics, skin care and fragrance line will enter Tmall platform on August 2nd. Pre-sale was opened on July 5th. Until now, CHANEL Tmall flagship store has over 533, 000 followers.
    Source: Tmall Platform
     
    Currently, 26% of luxury brands in the world have entered the Tmall platform. HSBC surveyed 2000 luxury consumers and found that 65% of Chinese consumers are willing to buy luxury goods on Tmall [5]. In the last 2 years, luxury beauty brands such as Givenchy, Armani, Tom Ford etc. have all opened Tmall flagship stores and achieved good sales already. Givenchy’s Tmall flagship has over 700,000 followers since it opened and sold more than 58,000 pieces of lipstick on their first day.

    Tmall flagship stores offer the chance to attract and interact with young, wealthy Chinese consumers particularly for high-end cosmetics which use brand image and reputation as key drivers of sales and differentiation. The demand for customized visuals on each Tmall flagship store is even stronger amongst retailers. Tmall Flagship Store 2.0 will help retailers offer richer content and provide a better consumer experience.

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    ABOUT THE AUTHOR

    ChemLinked Editor

    Tracking regulatory change news in Asia Pacific area and focusing on cosmetic ingredient requirements, registration/filing/notification procedures of China and South Korea.

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