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Tag: B2C

  • Shiseido and Alibaba Collaborating to Please Chinese Customers

    Shiseido and Alibaba Collaborating to Please Chinese Customers

    Japanese cosmetics giant Shiseido on Sunday become the world’s first multinational cosmetic company to open a dedicated office in Hangzhou to work with Alibaba Group and co-create products specifically tailored for Chinese consumers.

    The Shiseido and Alibaba office, within walking distance of the Alibaba Xixi headquarters, will house a team of around 20 Shiseido employees by next year. The purpose is to tighten collaboration with Tmall, Alibaba’s B2C marketplace and better position Shiseido in China, said the makeup company’s China region CEO Kentaro Fujiwara.

    “China is Shiseido’s biggest and most-important market [outside of Japan]. By combining Alibaba’s strengths in digitisation and consumer engagement with Shiseido’s world-class standards in research and development, we can create products that can precisely capture the appetite of the Chinese consumer,” he said. “I hope this unprecedented collaboration will pave the way for further innovations for the entire [Shiseido] group.”

    According to Shiseido, its China business saw the fastest acceleration in 2018 with sales growth of 32.3 per cent year-on-year to RMB 11.6 billion (US$1.73 billion). China accounted for 17.4 per cent of Shiseido’s total net sales last year, making it the profitable country market, following its home market Japan. Shiseido said it expects e-commerce to generate 40 per cent of its China sales by next year.

    “Without a doubt, whether it be e-commerce or digital innovation, Alibaba is the leader. Alibaba is one of the most important strategic partners for Shiseido China as well as for the entire group,” said Fujiwara.

    Mike Hu, president of Tmall’s fast-moving consumer goods division, said Shiseido’s leadership position in the industry and its quick adaptation to digital transformation is a common value shared by Alibaba.

    “Our primary mission is to enable others, and we are always eager to work with the world’s leading companies to help them bring their best products into the China market in the most effective and efficient way. This definitely includes Shiseido, a reputable brand that is synonymous with high standard and high quality,” he added.

    “The opening of the Shiseido and Alibaba office represents an important and historical milestone of our long-term collaboration,” Hu said.

    One of Shiseido’s cosmetics brands, Za, opened a Tmall flagship store in September 2011. Since then, 12 flagship shops and 15 major brands also launched on the platform. Fujiwara said there is a plan to bring Shiseido’s mother-and-baby product brand into China later this year via Tmall.

  • Luxury cosmetic brand Giorgio Armani Beauty to Join Tmall

    Luxury cosmetic brand Giorgio Armani Beauty to Join Tmall

    Giorgio Armani Beauty will launch a flagship store on Alibaba-owned B2C shopping platform Tmall next month as part of the brand’s latest campaign to capture China’s fast growing appetite for high-end beauty products, Alibaba said Monday.

    The luxury beauty and skin care brand, owned by the world leading cosmetic giant L’Oreal, will hold a series of pre-sale events on Tmall for the next three weeks ahead of its official launch on Jan 16. As part of the rev-up, the brand is offering 4,000 cases of its iconic “My Armani To Go” cushion foundation exclusively to be sold on the platform during the period.

    On the day of the launch, the brand will also open a store on the Luxury Pavilion, the invite-only section within the shopping site for premium and luxury brands. Brands including Burberry, Hugo Boss, La Mer, Maserati and Guerlain (LVMH) have joined since the platform was first introduced in August this year.

    China’s beauty product sector has seen a boom in recent years in tandem with the rapid development of the Chinese economy. According to China’s National Bureau of Statistics, retail sales of cosmetic items in the first 11 months of this year notched a 13.5% on-year growth, amounting to RMB $228.5 billion ($34.87 billion).

    Recognizing China’s fast-growing demand for high-quality cosmetic products and Tmall’s expansive reach with its 500 million active users, many top beauty names such as Lancome, La Mer, MAC, Bobbi Brown, Fresh and Kiehl’s have opened up shops on Tmall in recent years.

    In a recent interview with China Daily, Veronique Gautier, global president of Giorgio Armani Fragrances & Beauty, said Armani Beauty has seen stellar growth in China, at twice the speed of the rest of the markets combined.

    On Jan 12, several of the Giorgio Armani Beauty’s high-ranking executives will appear at an event in Beijing to announce the official launch of the flagship store on Tmall. The brand will also introduce a high-tech showcase of its 2018 spring-summer collection.

    As part of tie-up, the brand and Tmall will introduce interactive digital experiences for consumers to book offline make-up sessions with beauty advisors, explore its product offerings — from the latest Ecstasy Shine lipstick crafted specifically for the Asian market to its iconic fragrances and Lip Maestro lip gloss.

    Entertainment and gamification will also play a major role in attracting customers to Giorgio Armani Beauty’s new online store. By using their mobile phones, users can use the AR-powered interactive feature—Unlock Armani Codes—to scan anything that contains any of the six-letters in the word “Armani.” Those who have collected all six letters will have the chance to win sample kits priced at RMB 260 each.

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  • The future of cross-border eCommerce

    The future of cross-border eCommerce

    Unrestricted by geographic borders, today’s consumers are buying from international merchants more than ever before.

    While B2C eCommerce sales in Asia Pacific are projected to increase at moderate double-digit rates through to 2019, consumers are increasingly expecting brands to maintain service levels with prompt delivery and regular updates on their order status.

    Nevertheless, retailers serving eCommerce customers in other countries often face challenges  with customs procedures, regulatory requirements and taxation issues. These complications can lead to delays in shipping, as well as making it hard to predict delivery times.

    With the final part of the delivery journey (the “last mile”) being the most important touchpoint between a brand and a consumer, having the right fulfilment strategy is vital.

    Technology helps determine the efficiency of cross-border eCommerce. For example, Flexible Order Management Systems and Warehouse Management Systems are software packages designed to support eRetailers with multi-channel sales and distribution. They help to improve order accuracy as well as drive efficiency in processing orders.

    Moreover, data analytics offer businesses insights into buying behaviour, sales cycles and trends, as well as help with troubleshooting.

    Internet of Things (IoT) technologies also play a significant role in last-mile fulfilment by connecting parcels, machineries, logistical equipment and transport vehicles, thus driving dynamic new business models.

    One interesting aspect in IoT-enabled last-mile fulfilment is the flexible delivery address. This offers recipients greater accuracy about expected delivery times, enabling them to specify a change in address if necessary (such as having their parcel delivered to their workplace instead of their home).

    It is crucial for retailers to work with the right fulfilment partners, especially with consumers demanding greater flexibility in shipping options. Partners that offer both domestic and international delivery options at affordable rates will allow businesses to meet customers’ wishes regarding deliveries.

    Another key consideration is a fulfilment partner’s ability to overcome the legal limitations of each country. Duties and taxes, import and export laws, packaging and returns, and varied consumer privacy and protection laws hinder prompt door-to-door delivery. A fulfilment centre in the right location is an asset to online and offline merchants, who will be seen as reliable while slashing costs commonly associated with cross-border logistics.

    eCommerce consumers have zero tolerance for delivery delays or problems. Retailers, logistic service providers and fulfilment centres all play an integral role in ensuring the “last mile” is a success. The entire eCommerce chain needs to collaborate to ensure delivery times are prompt, costs are kept low and customer experiences stay positive.

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