Countries such as Japan and South Korea have spearheaded the region’s eCommerce sector,
developing almost at the same speed as that of Western markets. To gain a foothold in APAC,
many brands chose to enter these markets due to their already advanced technological
infrastructure, high eCommerce penetration and ready consumer base. Many brands that
have selected the developed eCommerce markets in North Asia for their market entry also
often chose the marketplace route given the high market share of such players. However, this
market place approach posed limitations on brand building and access to customer data.
Today, China is also a lucrative route for brands entering this region. Many global brands choose
China as a key market entry point for APAC, particularly because of Tmall’s high market share
in China’s B2C market. However, a marketplace-only strategy poses limits to long term brand
building. It can also present consumer-facing issues over authenticity and fraud, potentially
diminishing a monobrand’s credibility in the long run. Chinese consumers themselves are
becoming increasingly mature and are looking for unique shopping experiences with brands.
Their growing trust in online platforms extends beyond marketplaces; over 70% of luxury
purchases by Chinese consumers are made at monobrand boutiques – this is over 20% more
than the global average51.
North Asia is also not a quick and easy in-and-out strategy. Retailers eyeing this region need
to be prepared for a long-term commitment. For monobrands that do decide to go with a
combination of marketplaces and monobrand sites, it is important to have a presence in a
marketplace, given their high market share, but also have a transactional and localized
monobrand site that drives your brand messaging, serves as a means to ensure consumers that
your products on other eCommerce channels are authentic and offers exclusive products that
draw people to the monobrand site. Some brands have effectively combatted the price-driven
nature of marketplaces versus maintaining their brand identity by only offering off-season or
outlet products on marketplaces. In this way, brands can still participate in marketplaces as
one of their acquisition channels, without killing their margins or diluting their brand