Food Fight Cited as the Next Battle in China E-Commerce
Published By : 01 Jul 2015 | Published By : QYRESEARCH
An increasing number of firms in the mainland China has entered into deals to import foreign food to the region. The scenario yet again reveals the growing consumer concerns following a series of food scandals in the country.
The biggest online direct sales company in the mainland, JD.com announced earlier this week, on Monday, the launch of a new site dedicated exclusively to authentic Australian foods. Food products, which will be available on the site includes milk, fruit, and meat imported from Australia. The site is also likely to sale wine imported from Treasury Wine Estates. JD.com runs a series of online “country mall” and Australia is the latest entrant to the list of countries, which include France, Japan, and South Korea.
Commenting on the business portfolio of JD.com, the CEO of the leading e-commerce company Richard Liu said that Chinese consumers are very enthusiastic about using, trying, and buying products hailing from different parts of the world.
To capitalize on the present scenario, Yihaodian the online supermarket also opened a food channel exclusively dedicated to the seafood and meat exported from Canada. The announcement of the finalizing the deal between Agriculture and Agri-Food Canada (AAFC) and Yihaodian was announced earlier this month.
However, on the basis of foreign products available in the mainland, Alibaba still dominates the market. It was only last week that Alibaba, the Chinese ecommerce giant made a formal announcement of encompassing 11 countries to its website named Tmall Global, which is exclusively dedicated to foreign brands. Spokesperson from Alibaba also revealed that food is one of the most popular product categories in Tmall’s site.
On account of increasing market for foreign food in the mainland, the transaction volume of the purchased imported products online is likely to reach $245 billion in the next five years.