How to Sell on Tmall, Douyin and XiaoHungShu (RED)?

What Is Tmall, Douyin Store and XiaoHungShu (RED)?

Tmall
Tmall is an online marketplace owned by Alibaba Group, and it is one of the largest e-commerce platforms in China. Tmall Global is a cross-border platform that allows international brands to sell to Chinese consumers. To sell on Tmall Global, you must meet certain requirements and go through a registration process. Once your store is set up, you can list your products and start selling to Chinese consumers.

Douyin
Douyin is a popular short video app in China, and it has recently added e-commerce features that allow users to buy products directly within the app. To sell on Douyin, you must have a registered company in China (or in collaboration with a company such as Koh’s Development) and go through an application process to enable the e-commerce feature on your account. Once approved, you can set up a store and promote your products through videos and other content on the platform.

XiaoHongShu
XiaoHongShu (also known as RED) is a social commerce platform that combines social media and e-commerce. It is popular among younger consumers in China and is known for its user-generated content and product reviews. To sell on XiaoHongShu, you will need to have a registered company in China and go through an application process to enable the e-commerce feature on your account. Once approved, you can set up a store and promote your products through user-generated content and influencer partnerships.

Selling on e-commerce platforms can be a great way to reach Chinese consumers and grow your business in China.

However, it's important to note that the process can be complex and may require the help of a local partner or agency. You will also need to comply with local regulations and ensure that your products and customer service are of high quality to succeed on these platforms.

What Are The Requirements to Sell On Tmall, Douyin and XiaoHungShu?

Here are some general requirements and steps to get started.

1. Register a Tmall, Douyin or XiaoHungShu account

2. Have a registered company in your home country

3. Trademark/Brand Registration Certificate

4. Issue Brand Authorization Letter to your business partner in China (i.e., Koh’s Development and subsidiaries)

5. Have a Chinese bank account

6. Pay guarantee deposit and an annual fee

7. Wait for platform approval

8. List products

9. Start selling

What Are Some Common Challenges Businesses Face When Selling On These Platforms?

Here are some common challenges that businesses may face when selling on Tmall, Douyin, and XiaoHongShu in China:

1. Competition: These platforms are highly competitive, and many other businesses may sell similar products at cheaper price and better customer service. It can be challenging to stand out and attract customers.

2. Localization: To succeed on these platforms, businesses need to understand the local market and culture in China. This includes factors such as language, payment systems, and customer preferences.

3. Regulations: China has strict regulations on e-commerce, and businesses need to comply with these regulations to avoid legal issues. This can include requirements for business licenses, taxes, and data privacy.

4. Logistics: Shipping and delivery can be challenging in China, especially for cross-border sales. Businesses need to have a reliable logistics partner and be able to handle customs and import/export regulations.

   Also, since the local delivery service in China is very advanced, for example, a parcel from Beijing to Guangzhou normally takes only 2-3 days to reach the customer from the moment he puts the order online, it is very important for you to consider store cargo locally in a business partner’s warehouse to fulfill orders in a timely manner.

5. Customer service: Providing high-quality customer service is essential for success on these platforms. Businesses need to be able to communicate effectively with customers in China and provide timely and effective support.

6. Marketing: Promoting products on these platforms can be challenging, especially for businesses that are new to the Chinese market. Some businesses might use the videos and content for the western market, which might be ineffective due to cultural differences. Remember to allocate a sufficient budget for localized digital marketing.

   Effective marketing strategies may include influencer partnerships, targeted advertising through Baidu SEO, and paid promotion on these e-commerce platforms.

How Much Do I Need To Invest To Sell On Tmall, Douyin or XiaoHongShu(RED)?

The costs of selling on Tmall, Douyin, and XiaoHongShu as cross-border e-commerce sellers can vary depending on several factors. Here are some general costs to consider:

• Guarantee Deposit: The deposit to open an e-commerce store on these platforms can range from $10,000 to $25,000, depending on the type of store and category of products.

• Annual fee: An annual fee ranges from $10,000 to $15,000, depending on the type of store and category of products.

• Commission: There is a commission on each sale, which can range from 5% to 10%, depending on the product category.

In addition to these costs, businesses may also need to factor in marketing, logistics, and taxes costs. It's important to make a budget plan for these costs before selling on any of these platforms to ensure that your business is financially prepared.

In general, selling on these platforms is an important business decision to make. A minimum investment of US$80,000 to US$100,000 should be allocated for the 1st year to ensure a smooth store launch and to achieve effective market awareness in China.

Want to launch your product on Tmall, Douyin, and XiaoHungShu? Talk to us.