SYDNEY, Australia -- Walk through any Australian shopping mall, and you are likely to spot a Chemist Warehouse. Synonymous with bright yellow signs advertising heavily discounted vitamins and perfume, you might not expect the chain to dominate in China with an entirely different message.
Chemist Warehouse launched on Tmall Global, Alibaba's ecommerce platform for international products, just in time for Singles Day on Nov. 11, 2015.
Singles Day has become the world's largest online shopping event. Sales on the day last year across the Chinese retail giant amounted to an eye watering 91.2 billion yuan (A$1.8 billion) in 24 hours.
SEE ALSO:China's Tencent invests in India's Hike to take on WhatsAppThe day also marked an impressive arrival for Chemist Warehouse, company spokesperson Damien Gance told Mashable.
On Singles Day, Gance claimed Chemist Warehouse became the fastest retailer in the world to sell one million yuan (A$195,979) in products in just three minutes. Not done done there, Chemist Warehouse was the first merchant on Tmall Global to reach 10 million yuan (A$1.96 million) in sales in only 46 minutes, an Alibaba spokesperson confirmed.
"It was a very successful launch," Gance said, in a bit of an understatement.
Credit: tmallGance attributed the brand's Chinese success in part to marketing and messaging -- less mass media than its Australian catalogs and far more targeted. "We promote heavily what we do, and I think that was somewhat new and novel to Alibaba," he explained.
In an effort to reach a heavily mobile-focused set of customers, the company chose to market its products and brand online and on social media through platforms associated with Alibaba and the Internet portal Tencent, in addition to the Chinese messaging service WeChat.
Its pitch in China was one of origin, playing into local demand for reliable and safe healthcare and skincare.
"The primary driver for Chinese consumption of overseas products is provenance," Gance explained. "They want to ensure they're receiving the best product in the world." China is Australia's second largest market for pharmaceuticals, according to a 2015 report from Sydney University's China Studies Centre.
That strategy has been vital, because Chemist Warehouse has not always been able to compete on price in China. The fees associated with using Tmall and its Alipay payment gateway, among other costs, has meant they can't offer the kind of discounts Australian Chemist Warehouse shoppers get, Gance said.
"The primary driver for Chinese consumption of overseas products is provenance. They want to ensure they're receiving the best product in the world."
Importantly, it's offering products for which there is already heavy Chinese demand. "It's really saying to the consumer: You want this product? We can supply it at or near the price you can buy it elsewhere, but you know 100 percent this is legitimate product."
Gance said that message has worked for the Chinese consumer. "They'd rather spend a dollar buying Australian products with proven provenance, where they know the legitimacy of the supply chain and the legitimacy of the product, than 50 cents on a product where they can't find the provenance," he added.
On Tmall, Chemist Warehouse is selling mostly vitamin products, as well as healthcare and skincare. Its top sellers are the vitamin brands Swisse and Blackmores, as well as the Goat Soap line.
Much has been made in the media of overwhelming Chinese demand for baby formula clearing Australian supermarket shelves, but Gance said the company isn't offering such products at this point. "Our focus has been [healthcare and skincare] and we've always been able to maintain stock on the shelves for our Australians without having Chinese demand deplete what's available," he said."
Transacting on Tmall has some challenges, however. For one, the company needed to be set up with bonded warehouses within China, where product can be held without yet clearing customs.
Ultimately, selling on an ecommerce platform like Tmall Global helps simplify any quarantine or border issues. "The only real regulatory hurdle that we've had to encounter is the listing and registration of product into those bonded warehouses," he said.
While Chemist Warehouse would not disclose internal numbers, Gance said Chinese sales were still only a small portion of its overall sales.
Around 1,300 Australian brands currently sell on Tmall and Tmall Global, and Alibaba has announced plans to open its first Australian office in Melbourne by the end of 2016, in part to promote its platforms as an option for local companies.
Nevertheless, Gance warned first time players the process of getting ready for Chinese sales on Tmall can seem convoluted.
"If you're prepared to invest time, energy and capital in getting it right, the rewards upfront have been great, but there have been many Australian retailers who have failed," he said.
"Just like anything, application and aptitude can get a good result."
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