Metcash Aspiring to be Major Source of Australian Products in China

Published By : 26 Oct 2015 | Published By : QYRESEARCH

The middle class of China is increasingly attracting investment from many countries around the world. Particularly, the food companies around the world are increasingly penetrating the China market with their goods. At present, China imports milk and dairy products from South Korea, organic produce from Europe, liquor from Scotland, etc. However, the country that has benefitted the most from the China food market so far is Australia.

The food industry in Australia is booming, thanks to China. The middle-class in China with their elevated purchasing power are increasingly buying food, beverages, make up, and other products from Australia. Australia and China are benefitting from these mutual trade deals. Many food firms from Australia have made deals with China in order to sell their products in the China market. These products can be seen in brick and mortar stores and now are increasingly been seen in online shopping portals in China.

Recently, the largest food and liquor wholesaler from Australia will be setting up space in the online shopping market of China. Metcash, the company behind Bottle-O, IGA, and Cellarbrations has now established a flagship outlet on China’s website Tmall Global and introduced pantry staples such as long-life milk, Uncle Toby’s Oats, Weet-Bix, honey, and infant formulas.

The Australian firm has struck a deal with the global giant Alibaba the owner of Tmall Global. At present, Metcash has entered into a third-party logistic arrangements with several Chinese providers. According to Mark Hewlett, the executive general manager of new channels at Metcash, they are aspiring to become a major source of products in China. He further added that with access to more brands and even more producers than any present operator, Metcash will be well placed to offer the best of Australia’s groceries directly to homes in China.

This move from Metcash comes after it lost around US$384 million last year and tried to push its competitiveness against other companies.

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