Five Big International Brands Must Beg For Cooperation With Tmall?

Alibaba Group Holding Ltd. (NYSE:BABA) Alibaba Requiring businesses to sign exclusionary agreements not only removes Chinese brands from Jingdong, but also suffers from many global brands.

According to the world clothing shoes and hats net, the five international brand After refusing to sign exclusionary agreements with Alibaba, Tmall.com Tmall Traffic and sales dropped sharply. It is reported that three of the five brands mentioned above earn more than 1 billion dollars annually.

Due to the fear of Alibaba retaliation, an anonymous e-commerce director of the brand said that according to the sales situation, the company's display advertising position could be at the top, but was eventually put on the low end by Alibaba. "This is a clear punishment," he said.

Alibaba has routinely denied the allegations of the above international brands and issued a statement calling it "totally wrong".

Stephen Lamar, executive vice president of the American Apparel & Footwear Association, which represents more than 1000 American brands, is known as "resentment" with Alibaba. It hopes that relevant departments will conduct a thorough investigation of Alibaba's above actions and add that members of the association have complained about unfair competition from Alibaba.

The members of AAFA include Alibaba Inc. JD.com (NASDAQ:JD) Jingdong, the largest competitor in China's electricity supplier operation, and the latter is also a sponsor of AAFA.

Last July, Jingdong jointly discounted the electricity supplier Vipshop Holdings Ltd. (NYSE:VIPS) vip.com issued a joint statement, claiming to boycott the abuse of market dominance of an e-commerce platform, and "a platform" is Alibaba's Tmall.

Subsequently, Tmall issued a statement, responded that the joint statement was called "touch porcelain", misleading, confusing and emotional agitation to the public, the market and even the competent departments, and said that the brand embraced Tmall, Tmall as the main or even exclusive and exclusive platform, is the choice of merchants, rather than Tmall's choice.

These "struggles" are considered to be the platform of Tmall and Jingdong's "two election one" policy for a long time.

However, in an interview with The Associated Press, there were also merchants' platform for Alibaba.

Ningbo Pacific bird fashion dress Limited by Share Ltd (SH:603877) (hereinafter referred to as "Taiping bird clothing"), general manager of the electricity supplier Weng Jianghong said that the company did not receive Alibaba's compulsion. The decision to focus on Tmall is strategical, mainly hoping to focus on developing Tmall's limited resources.

At the beginning of the New York fashion week on the Tmall fashion day in China in, Taiping bird became one of the two famous brands that Tmall carried to the United States in the beginning of the year. However, Taiping bird was completely overshadowed by another brand Li Ning Co Ltd (2331.HK) in the event. The latter was dressed by the public number writer on the fashion show of New York fashion week and was attracted by nationalist sentiment.

In addition to participating in Tmall China day, last year's "618" withdrawal from Jingdong, Taiping bird clothing immediately signed strategic cooperation with Alibaba. The Ningbo company claims that by the year 2020, Taiping bird will open a new round of retail strategic cooperation with Tmall in the field of brand building, big data application, consumer operation, and online and offline integrated channels. The goal is to achieve a breakthrough of tens of billions of online retail sales and achieve double billion Online and offline sales. (the above retail sales are pre - retail sales).

The Associated Press's two contracts show that Alibaba's contract exclusivity is true.

One of the contracts shows that if there is no written permission from Tmall, the brand can not run shops on other e-commerce platforms, and the other contract shows that new products can not be launched on other competitive platforms, without Tmall's license, and can not be promoted on other electronic business platforms.

Two top executives of Chinese listed companies, who also did not dare to publicly express their views, condemned the Alibaba's actions as limiting trade violations, but admitted that they had to compromise with Alibaba. One of them said that if it did not cooperate with the Alibaba, it would suffer the punishment of traffic declines. At the same time, Tmall's traffic will increase after raising the Jingdong price or deleting the promotion of Jingdong.

One of the executives who sell billions of dollars in Chinese listed companies even said, "you have to beg (Alibaba)."

However, the situation may change after Tencent joined the war.

The market generally believes that Jingdong has been unable to reverse the continuing pressure on Alibaba, but Tencent, which has more users and unlimited investment, is making the company scared.

600398.SS, one of the largest apparel retailers in China recently, accepted Tencent's investment and set up a 10 billion yuan trade fund with the latter. It is considered to be a symbol of Alibaba's long term monopoly of the electricity market.

Hai Lan's home has been close to Alibaba. It was also one of the brands that were withdrawn from Jingdong during the "618" period last year. Its headquarters in Jiangsu also welcomed the inspection of Ma Yun, founder and chairman of Alibaba last year.

Between Jingdong and Alibaba, most businesses may choose the latter voluntarily or passively, but choosing between Alibaba and Tencent may be a better option.

In the middle of this month, Tencent announced that it will launch its Wechat promotion service in WeChat's circle of friends with more than 1 billion users.

According to WeChat advertising assistant, the new business promotion also supports the functions of customized crowd delivery and oCPM, which is fully put to advertisers. In the process of commercialization of WeChat, circle of friends advertising is mostly used to help customers in brand marketing and activity marketing, similar to traditional media. The new product promotion is aimed at the sales promotion business of Alibaba's core products. Advertisers can set up "ad" and "immediate purchase" copywriters. Users click to jump directly to the product details page for purchase.

Prior to that, Tencent also launched small businesses, boutiques and other platform businesses to help businesses better use WeChat ecosystem and a large number of users. Ma Huateng, founder and chief executive of Tencent, has also reiterated that the group will not directly engage in e-commerce business, but only wants to do digital assistants in all walks of life.

At present, Tencent's WeChat platform has become the preferred cooperation platform for the luxury goods industry, including Herm s International SCA (HRMS.PA), Hermes International Group, Swiss independent watch brand Audemars Piguet Audemars Pigeut watch and so on. The most high-end brands in the world are putting the Chinese electricity supplier business on the WeChat platform. At the same time, a large number of popular brands are also beginning to interact and sell through WeChat small program experiment.

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