Suning, Metcash sign agreement
Both companies will promote Aussie products procured by Metcash to all available channels both online and offline. They have set initial three-year revenue goal of AU$60 million.
“With the eco-friendly environment, products from this land would gain very anticipated market share in China from the consumers who value nature and wellness a lot. The cooperation with Metcash will allow us to provide more Australian and New Zealand brands with the opportunity to enter Chinese market through the retailing platform that Suning developed,” said Steven Zhang, vice president of Suning International.
During his visit in Australia, he discussed with Metcash CEO Ian Morrice about the local vendors and the business landscape, which has resulted to signing a Memorandum of Understanding with the wholesale distribution and marketing company.
Furthermore, Suning and Metcash plans to set up an Australian Pavilion store on Suning.com, which will enable easier shopping for Chinese consumers to purchase from a wider range of Australian and New Zealand products. It will include groceries, fresh produce, alcoholic beverages, personal care items, cosmetics and other consumer goods. Suning will handle the storage, promotion, marketing and logistics.
During Zhang’s visit in Australia, they also went to the Community Co factories, a Metcash-owned brand of quality food, water, dairies and other daily goods. The brand plans also bring Community Co to China. Suning and Metcash will identify and jointly fund charities to support and contribute to local Chinese communities and those in need.
“If we think a product is good to introduce to Chinese consumers, we would see how it is produced originally. We visited the Community Co factories to ensure our consumers could enjoy these products in a safer and happier way,” said Henry Tao, deputy general manager of Suning International.