Alibaba’s Tmall to upend China’s real estate industry by using the Internet for entire sales process

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Developers are listing their home projects on Tmall Haofang, a new sales channel by world’s largest e-commerce platform. Selected projects sold on the ‘good homes’ channel will offer up to 15% discount to catalogue prices.

China’s property developers, stymied by a months-long ban on showroom exhibitions and the worst economic growth pace in decades, are girding themselves for a new sales strategy in the age of the coronavirus —Country Garden Holdings and other major Chinese developers are putting some of their new homes on Tmall Haofang, a new sales channel by the world’s largest e-commerce platform, operated by this newspaper’s owner Alibaba Group Holding.

The ubiquity of e-commerce has expanded the available universe of purchases for the average Chinese consumer, from fresh produce and seafood to holiday packages and even large items like luxury cars and real estate. Online shopping has been given a further shot in the arm by the coronavirus pandemic, as bricks-and-mortar shops, showrooms and sales centres close to contain the spread of the disease.

Alibaba operates several online shopping portals, with Tmall acting as the market place comprising branded stores, while Taobao is the venue for ordinary sellers. Developers are under pressure to keep their debt-to-asset ratio at 70% after excluding advance receipts, net debt-to-equity at 100%, and short-term borrowings at no more than cash reserves.

 

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