Coming Soon on Tmall: Boots Makes First Move into China

On 20 September, 2018, Walgreens Boots Alliance, Inc. and Alibaba Group Holding Ltd. announced the launch of a Boots flagship store on Tmall Global, Alibaba's B2C platform for international brands and retailers,to introduce a number of iconic Boots beauty brands to more than half a billion consumers on Alibaba's platforms in China.

WBA will start by selling three of its top Boots brands, No7, Soap & Glory and Boots Cucumber, the company said in a release. The launch will give WBA access to the more than half a billion consumers who are currently shopping on sites within the Alibaba ecosystem.

Ken Murphy, executive vice president at WBA, said that access will help to further internationalize WBA's products while also complementing its wholesale and retail pharmacy business in China with a new sales channel direct to consumers.

According to data from Euromonitor,total retail sales of skincare and make-up products in China reached RMB 186.7 billion ($27.26 billion) and RMB 34.4 billion ($5.02 billion), respectively, in 2017, up 10% and 21% year-over-year.Those numbers have been driven by an upgrade in Chinese consumption as spending power increases along with exposure to high-quality, foreign goods.

“We are thrilled to be partnering with Walgreens Boots Alliance as they continue to build their brands in China, engage a new audience and meet the evolving lifestyle demands of the Chinese consumer,” Alibaba Group President Michael Evans said.

Alibaba looks forward to building on the relationship with WBA to continuously expand the range of product selection to better serve the more than half a billion consumers on Alibaba's marketplaces looking for quality international beauty and cosmetics products.

Launched in 2014, Tmall Global allows for the sale of select imported products in China that have been granted preferential trade treatment by the Chinese government, including some beauty and personal-care goods.Many international brands have been using the site as a point of first entry when choosing to extend their business to China.