Tmall Will Make More than $30 Billion in Sales This Year

C. Custer
8:00 pm on Jul 18, 2012

Alibaba’s Tmall may have changed its name to Skycat (in Chinese) earlier this year, but it apparently hasn’t changed its habit of selling hundreds of billions of RMB worth of stuff. The company broke 100 billion RMB ($15 billion) in sales in 2011, but it continues to accelerate rapidly, estimating it will rack up more than 200 billion RMB ($31 billion) in sales by the end of this year.

The total sales figure is not new, and does fall in line with projections Tmall made at the beginning of the year. But the confirmation of this number at the halfway point in the year indicates that Tmall is likely well on its way to reaching that goal, and is probably already nearing or even beyond 100 billion RMB in sales. The company also announced some other details like these: this year, Tmall expects to sell 500 million RMB ($79 million) in 3C products and 600 million RMB ($95 million) in clothing. In total, Tmall is experiencing year-on-year growth of more than 100 percent, and an operating profit margin of more than 50 percent.

Tmall’s massive growth and success points to many things, but one interesting aspect of it is that because it sells branded items directly from the brands involved, its success may be seen as an indication that China’s middle class is increasingly unwilling to deal with knockoffs and unprofessional vendors on other e-commerce sites (including Alibaba’s own Taobao). That’s great news for brands looking to connect with China’s growing consumer base.

[via Sina Tech]


Replies
  • gregorylent

    why don’t you link to the sites you write about instead of to tech asia articles about them .. that is so 2008

  • http://www.techinasia.com Willis Wee

    Hi Gregory. Some readers would want to know more about what’s written about taobao. so we place in the tag link. it has been working well for everyone, i believe. besides, it’s easy to log on to taobao, especially when it’s such a popular site. click taobao.com, baidu taobao, or google taobao. hope that helps.

  • http://www.techinasia.com C. Custer

    @ Greg: Mostly because this is an English-language news site. Linking to Taobao doesn’t serve much purpose for us because most of our readers can’t read it and aren’t actually interested in buying things on Taobao anyway; what they’re interested in is the business, the market, etc. For that, we think they’re better served by being provided a link to more English-language information about the company than they would be a by a link to the site itself in Chinese.

    For readers that do read Chinese, on the other hand, a link to Taobao itself seems superfluous. In the same way that you wouldn’t feel it necessary to link google.com if you told someone to Google something, I feel certain that anyone whose Chinese is good enough to use Taobao is already aware of how to find the site (and probably has it bookmarked). Of course there would be no harm in us linking it, but we generally don’t bother unless we’re discussing a specific subdomain (see, for example, our recent coverage of Taobao’s government auction service).

    You’ll notice when we write about startups, we generally do link to their sites, as they can be hard to find otherwise. But for big companies like Taobao, Baidu, Youku, etc. we generally link to our own internal articles for the reasons listed above. Yes, it does have benefits for our traffic as well, but we do it primarily because we feel it serves our readers’ wants and needs better than direct links would

Read More