Online Retailer Makes First Direct Purchase of Food Products

A Lastest News about Electronic Commerce in China

Posted on: 30 Dec 2012

A major Chinese online retailer recently purchased $54,000 USD of 27 US food products.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 12/17/2012 GAIN Report Number: 12812 China - Peoples Republic of Post: Shanghai ATO Online Retailer Makes First Direct Purchase of US Food Products Report Categories: Export Accomplishments - Events Approved By: Alan Hallman Prepared By: Freddie Xu Report Highlights: A major Chinese online retailer recently purchased $54,000 USD of 27 US food products due to ATO Shanghai's reverse trade mission to the Taste of California trade show. This is the first direct purchase of products from the US by this retailer; follow-on shipments are expected. ATO Shanghai led a fourteen-buyer reverse trade mission to attend the Taste of California trade show and conference in Oakland during Nov 5-10. A major Chinese online retailer recently purchased $54,000 USD of 27 US food products due to our reverse trade mission to the Taste of California trade show. This is the first direct purchase of products from the US by this retailer; follow-on shipments are expected. ATO Shanghai led a fourteen- buyer reverse trade mission to attend the Taste of California trade show and conference in Oakland during Nov 5-10. ATO Shanghai believes this trade mission was very successful on connecting the U.S. small- to medium food a nd wine producers with Taste of California trade show opened the door for exports potential buyers from China. to China *photo by CITD This purchase is the first direct shipment that the retailer will import from the U.S. The retailer told ATO staff that this container is “just the start”, and is confident the new products will be successful. Among the 27 SKUs are several that are being exported to China to China for the first time. Once they have a better idea about the sales of these products more shipments are expected. This is the second year that ATO Shanghai has worked with this online retailer to promote U.S. food products. In 2011, ATO Shanghai introduced 16 American food and beverage suppliers and 260 SKUs of new products to the online retailer. After the initial product introduction, ATO launched a month-long online marketing event to promote the products. Total sales reached 1,518,300 RMB, or $241,000. Daily sales reached 50,610 RMB, an increase of 615 percent. In November 2012, almost one year after the promotion, monthly sales of American products grew to $696,000, an increase of almost 200 percent over the same period last year. The Taste of California trade show and conference event was organized by The California Centers for International Trade Development (CITD) at State Center Community College District (SCCCD), in cooperation with the California Department of Food and Agriculture. More than 65 California export companies exhibited and presented on food and beverage products to about 50 buying companies from 16 markets from five continents. Markets included the Peoples Republic of China, Hong Kong, Taiwan, Indonesia, Malaysia, and etc. Buyers from Greater China area accounted for about 60 percent of total buyers.
Posted: 30 December 2012

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