Even though Amazon (No Change at 93 points) has an expansive presence in China via its 2004 acquisition of Joyo.com, the company has embraced the partnering strategy that paved the way for many retailers in China. Tmall.com, one of Alibaba’s e-commerce properties, announced that Amazon was launching a “store” within Tmall that would include thousands of products from Amazon’s existing z.cn ecommerce store.
Amazon partnership with Tmall drove Tmall’s March media rating up +12 points or +19 percent, hitting a strong 62 for March 2016.
It was the strong March media rating numbers that brought the Tmall brand to our attention. It didn’t take a but a quick glance at the brand’s 4-year media rating trajectory to understand that Tmall is drawing consistently strong media attention. Cumulative 4-year growth rate (CUME) is a very strong +24%. The only downside is concerns recent media momentum, which is off -46% this month and running negative over the preceding 4-month media cycle. The beginning of a media plateau may be forming as shown in the 6-month media rating moving average (orange trend line). The brand is 2-points below its May 2014 high of 64, but the partnership with Amazon and the March media rating increase may signal a return to 2014 media growth numbers.
There couldn’t be a stronger contrast in the online retail sector then Amazon and Alibaba. Amazon has yet to secure traction in China while Alibaba is not only growing its revenue by record numbers, but also hitting amazing media rating metrics. The brand is up +2 points at 94, just moving past Amazon in the very competitive Internet Brand Sector. And 94 is nothing to be shy about as Alibaba is now in some amazing brand company with eBay (94), Netflix (95) and Yahoo (95).