The PAS Group group general manager for digital, Anna Samkova, talks expansion strategies ahead of her presentation at Ragtrader Live Melbourne next month.
Learn more about how she did it by grabbing your tickets to the event here.
Review recently expanded into China via eCommerce channels. When did the brand first consider the market and why?
I met Maggie Zhou, Alibaba’s Australia CEOe at the International Women’s Lunch in March last year. After a quick introduction Maggie’s team mentioned that they are big fans of our Review brand. Maggie wanted to explore it further so we commenced a discussion shortly after.
What was the process for researching the market and potential partnerships?
Review has a strong Asian following already and we were excited to explore the opportunity to capture a larger market. I flew to Hangzhou to meet with the team and gauge interest from the category manager.
How did the partnership with Tmall come about?
The team at Alibaba’s office in China did an in-depth research of the brand just before my arrival, and once I did the brand presentation, decided that Review’s ultra-feminine and romantic designs would be of interest to the Chinese consumer. It was recommended to launch on Tmall Global, a cross-border B2C business platform.
How long did the process take and what were the key terms of the arrangement?
It took approximately eight months between the original discussion and go-live date. We confirmed the platform, locked in a Tmall partner, launched Alipay and developed a marketing strategy.
What is some of the early feedback/engagement?
It is not an easy process and you have to deal with a lot of uncertainties, cultural differences and language barriers. However we’ve had ongoing support from the Alibaba team in Melbourne who were assisting and guiding us along the way.
What about the long-term plans?
The first 12 months are dedicated to brand awareness. We’d like to gauge the interest in our product range from Chinese consumers, get to understand them better, what categories they are most interested and why, seasonality, pricing, sizing, etc.
What are the biggest challenges in expanding into China?
The challenge is to keep up with the Chinese consumer who is very advanced technologically and do not part with their mobile phones. In China, 60% of all retail journeys start online and 22% of all purchases are made online (compared to 10% in the US and 7.2% in Australia). We have to provide a seamless and frictionless mobile experience at all times.
E-commerce rules and regulations in China are still new and evolving, so we need to continue to adjust our strategy.
What are the biggest opportunities?
During the 11.11 Global Shopping festival last November, Australia ranked as the third highest selling country into China which confirms the demand for Australian brands. It is exciting to have an opportunity to access China and other markets around the world through the online channels. We are also uniquely placed to service the Asia Pacific, even sharing several time zones. We believe we have a unique product range that is attractive to the Chinese consumers.
What kind of resources has the brand allocated to this venture?
We hired two employees; one of them is originally from China and fluent in English and Mandarin. I think this is the key for us as it makes the whole journey a lot easier.