Tmall is China’s dominant e-commerce market with 500 million users, 70,000 brands, and 50,000 third-party sellers. 40 brands in our Digital IQ Index: Beauty | China sell via T-mall stores, and compete for visibility with third-party resellers who control 42% of brand term search real estate on the platform. Most brands miss the opportunity to strengthen their Tmall stores with features such as user-generated content campaigns, skin tests and live chats, but a few leaders have emerged. Max Factor, Clinique, and Olay’s efforts on the site are exemplary. Max Factor utilizes Tmall-parent Taobao’s new Houyan feature to host user-generated contests. Olay also launched a contest awarding the most popular fan photo with customized products, and gathered 27,000 submissions from 12,000 participants. Clinique offers a skin test on its Tmall shop that recommends products.
Beauty sales on e-commerce giant are expected to grow. Tmall rang $85 million in Beauty sales on Singles Day in November, up 61% from 2012, proving optimization for the platform is a worthwhile investment.
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